Kuwait Emir appoints Sheikh Ahmad Abdullah Al Sabah as Prime Minister

Kuwait’s Emir Sheikh Meshal has issued a decree to appoint Sheikh Ahmad Abdullah Al Ahmad Al Sabah as Prime Minister and to ask him to form a new government.

Sheikh Ahmad replaces Prime Minister Sheikh Dr Mohammed Sabah Al Salem, who submitted his government's resignation to the Emir following recent elections.

Sheikh Ahmad is a Kuwaiti economist and has served as head of the Crown Prince’s Court since 2021. In 2009, Sheikh Ahmad was appointed minister of oil and minister of information, holding those portfolios for two years.

He served as health minister from 2005 to 2007, as transport minister from 1999 until 2006, minister of planning and minister of state for administrative development affairs from 2003 until 2005 and finance minister from 1999 and 2001.

Former Kuwaiti Prime Minister Sheikh Dr Mohammed Sabah Al Salem. Photo: Kuna

On Sunday, 41 of Kuwait's 50 MPs met informally inside the National Assembly and agreed on the agenda for the coming session. Key issues include raising the cost-of-living allowance for Kuwaitis, amending the election commission law and extending the power of the judiciary to citizenship issues.

The meeting came amid reports that Sheikh Dr Mohammed refused to form a government unless certain conditions were met.

A decree issued by Sheikh Meshal postponed the opening session of parliament to May 14, after it was previously set for April 17.

Disputes between appointed Kuwaiti government and elected MPs have often led to political paralysis. The latest election was the fourth to be held since December 2020.

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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

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UAE currency: the story behind the money in your pockets

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