International trade will receive special focus at the Cop28 summit in Dubai later this year, to highlight the key role it plays in accelerating climate action, officials have said.
A dedicated day will focus on trade – a first for the climate summit – under the UAE’s Cop28 presidency.
It will highlight trade's role as an enabler of climate-smart growth, including supply-chain resilience, the Ministry of Economy said on Thursday.
The ministry, the Cop28 presidency and Minister of State for Foreign Trade Dr Thani Al Zeyoudi will co-lead the committee on trade for the summit alongside the World Trade Organisation secretariat.
The UN Conference on Trade and Development, the International Chamber of Commerce, the World Economic Forum and the Abu Dhabi Department of Economic Development have also all been invited to help shape discussions during the summit, the ministry said.
“International trade, as a cornerstone of economic growth, jobs, and livelihoods, is an essential tool in accelerating climate action,” said Dr Sultan Al Jaber, Cop28 President-designate and Minister of Industry and Advanced Technology.
“It has the potential to unlock investments in emerging economies, to boost uptake of clean energy technologies, and to support green jobs and innovation.
“The inclusion of trade in the Cop28 thematic programme is a deliberate and targeted effort to bring more stakeholders on board in our effort to fast-track climate action.”
The summit begins in November when the world will complete a first-ever “global stocktake” of progress in limiting climate change and protecting the environment.
The organisers of the summit recently revealed a detailed agenda, which includes talks on health, relief, recovery and peace, finance, trade, gender equality and accountability as well as energy, industry and a just transition.
“As a global supply chain hub, the UAE understands how significant a role the international trading community can play in championing energy transition and delivering sustainable growth across the world,” Dr Al Zeyoudi said.
“We are excited that Cop28 will showcase the opportunities in the sector for future-focused thinking that can deliver a trading system that is smarter, faster and more inclusive – especially for SMEs [small and medium enterprises] and MSMEs [micro SMEs] across the developing world.”
The UAE’s non-oil foreign trade surged 17 per cent to reach a record Dh2.23 trillion ($607.1 billion) last year amid the country's economic diversification efforts.
The Arab world’s second largest economy is also forging new deals with various countries globally through Comprehensive Economic Partnership Agreements.
“We want to mobilise world leaders to unite in using trade policy and trade facilitation to scale up trade in environmental goods and services and to accelerate decarbonising supply chains and making them more inclusive and more resilient to climate shocks,” said WTO director general Dr Ngozi Okonjo-Iweala.
The UAE views climate change mitigation as a major catalyst for sustainable socio-economic development, underpinned by a smart and circular economic strategy that “encourages the inclusive flow of trade, supply-chain efficiency, and trade tech, creating new opportunities for exporters, manufacturers and investors”, said Ahmed Al Zaabi, chairman of the economic development department.
“As the catalyst of Abu Dhabi’s economic growth and diversification, Added is doubling down its efforts in raising the emirate’s trade stature to new heights, elevating its competitive edge as a global trade and investment hub,” he said.
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
