UAE officials continued their discussions with White House officials and business executives on Wednesday as Sheikh Tahnoon bin Zayed, Deputy Ruler of Abu Dhabi and National Security Adviser, held talks with Tesla and SpaceX chief executive Elon Musk.
“I discussed with Elon Musk the importance of artificial intelligence and advanced technology in developing more agile and responsive government systems that prioritise innovation in service delivery,” Sheikh Tahnoon wrote on social media.
“We also explored avenues for collaboration in key sectors where AI and advanced technology can play a transformative role, reinforcing the UAE’s position as a global leader in digital innovation."
In a photo posted on X, Sheikh Tahnoon can be seen with G42's group chief executive Peng Xiao, talking to Mr Musk on a video monitor.
Sheikh Tahnoon followed his conversation with Mr Musk with a meeting in Washington with US National Security Adviser Michael Waltz. In a post on X on Thursday, he said the two discussed AI, energy, infrastructure and joint investment co-operation. "We also discussed efforts to consolidate the foundations of regional and global security and stability," Sheikh Tahnoon added.
On Monday, Sheikh Tahnoon met US President Donald Trump and the two discussed efforts to strengthen co-operation on the economy and technology between the US and the UAE.
Mr Musk has taken a central role in shaping the policies of the Trump administration. At the World Governments Summit in Dubai last month, Mr Musk announced that his Boring Company had signed an initial deal to bring an underground road system, the Dubai Loop, to the UAE.
“Once people try it out they're going to say: 'Wow, it's really cool.' It's going to seem so obvious in retrospect,” Mr Musk said at the time.
During the visit by UAE officials, Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, and Yousef Al Otaiba, Minister of State and UAE ambassador to the US, met US Vice President JD Vance.
During a speech at the American Dynamism Summit in Washington on Tuesday, Mr Vance reflected on the UAE's White House visit and spoke of the country's affinity for AI.
“We’re thrilled to have our friends from the United Arab Emirates, a number of the business leaders and government leaders, in town this week for meetings with our government,” he said.
“One of the things [the UAE] consistently hammer upon – it’s something that unfortunately too few of our European allies tend to get – is that, if you want to lead in artificial intelligence, you have got to be leading in energy production.”
On Tuesday, Sheikh Tahnoon also met US Treasury Secretary Scott Bessent.
Microchips were a major topic raised with Trump administration officials during the UAE visit. In the final days of the Biden administration, policies were announced that made it more difficult for countries such as the UAE, Saudi Arabia and India to buy powerful chips and graphics processing units needed for AI.
Both Nvidia and Microsoft have spoken out against that policy, which they say hinders AI development in countries that have made significant investments and strides in that field. It is not yet clear whether the Trump administration will reverse the chip export policies.
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
Hili 2: Unesco World Heritage site
The site is part of the Hili archaeological park in Al Ain. Excavations there have proved the existence of the earliest known agricultural communities in modern-day UAE. Some date to the Bronze Age but Hili 2 is an Iron Age site. The Iron Age witnessed the development of the falaj, a network of channels that funnelled water from natural springs in the area. Wells allowed settlements to be established, but falaj meant they could grow and thrive. Unesco, the UN's cultural body, awarded Al Ain's sites - including Hili 2 - world heritage status in 2011. Now the most recent dig at the site has revealed even more about the skilled people that lived and worked there.
