A new coalition of UAE companies has been established to develop and grow a carbon market in the Emirates.
The newly established UAE Carbon Alliance, launched by the UAE Independent Climate Change Accelerators (UICCA), will help support the transition of companies to a green economy, as set out in the UAE Net Zero by 2050 Strategic Initiative.
A carbon market is a trading system in which carbon credits are bought and sold.
Companies or individuals can use such markets to compensate for their greenhouse gas emissions by purchasing carbon credits from groups that remove or reduce greenhouse gas emissions.
Last year, The Abu Dhabi Global Market, the UAE capital's financial free zone, announced plans to team up with AirCarbon Exchange (ACX) to create the “world’s first fully regulated” carbon trading exchange and clearing house in the emirate.
Carbon reduction is both fundamental and non-negotiable for the health of our planet
Sheikha Shamma,
UICCA
Chaired by Sheikha Shamma bint Sultan, president and chief executive of UICCA, the UAE Carbon Alliance is made up of companies from various sectors that recognise the importance of carbon credits in achieving net-zero goals.
The alliance’s founding members are ACX, First Abu Dhabi Bank, Mubadala Investment Company, Abu Dhabi National Energy Company and Abu Dhabi Future Energy Company, in addition to UICCA.
The alliance will look to establish national co-operation in decarbonisation, develop standards and frameworks for constructive carbon financing, increase education and knowledge of carbon markets and support organisations on greenhouse gas emission reduction projects.
The establishment of a transparent carbon market will direct investment and capital towards projects that support decarbonisation, while also providing corporations with a market-based mechanism to further their transition journey and achieve reduction targets.
“Carbon reduction is both fundamental and non-negotiable for the health of our planet," said Sheikha Shamma.
"To reach net zero, we must actively reduce our emissions across all sectors and it is imperative that public and private sectors take active steps to reduce emissions.
"Productive partnerships like the UAE Carbon Alliance will help the world find practical solutions on the path to decarbonisation, by funding the actual physical carbon abatement efforts and making them financially, environmentally, and socially viable.
"The UAE Carbon Alliance will establish the UAE as a leading hub for high integrity, high quality carbon markets, to help fund the much-needed action to limit global warming to 1.5°C.”
The UAE Carbon Alliance will convene its first executive committee meeting with all its founding members this week.
UICCA will play will help guide the deployment of carbon credit solutions in the region by facilitating stakeholder collaboration across the public and private sector, as well as acting as the secretariat of the alliance.
The alliance will represent buyers and sellers of carbon credits, traders, climate project developers, financial institutions, corporations, exchanges and brokers from across the UAE and beyond.
What is a carbon market and how does it address climate change?
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
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
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
Killing of Qassem Suleimani
Killing of Qassem Suleimani
More from Neighbourhood Watch:
Mohammed bin Zayed Majlis
