Dubai on Sunday set out a Dh390 million strategy to transform the emirate's rural areas to create "an ideal destination to live and work", and boost tourism.
Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence, approved 37 projects – slated for completion by 2028 – to enhance Dubai's countryside and develop diverse tourist attractions.
He also unveiled a master plan for the Saih Al Salam Scenic Route, a 100km road for vehicles and bicycles to promote desert tourism and provide investment opportunities for local communities.
The Crown Prince said the series of initiatives aimed to “transform Dubai’s rural areas and countryside to be among the best, most beautiful, and enjoyable for all".
"This contributes to solidifying the emirate’s position as an ideal destination to live and work, as well as a preferred attraction for visitors from around the world," Sheikh Hamdan said.
Attracting millions of visitors
Sheikh Hamdan said the ambitious plans are in line with the Dubai 2040 Urban Master Plan, which aims to provide a framework for the emirate's development for years to come.
“We have approved the development of several facilities, along with increasing activities, events, and services within the Saih Al Salam Scenic Route project to boost tourist numbers from around half a million annually currently to over three million visitors by 2040," Sheikh Hamdan said.
"This will enhance the area’s position as one of Dubai’s main tourist destinations while expanding investment opportunities for locals and preserving the region’s unique nature and identity."
The master plan for the Saih Al Salam Scenic Route includes the development of five tourist stations and the construction of 97.86km of cycle tracks, increasing the total track length in the area to 156.61km.
It will include the construction of a market at the main station hub, featuring shops selling local goods near Al Qudra Lakes and an open-air cinema near Last Exit. The station will also feature luxury marquees, allowing visitors to camp in the heart of the desert.
A Wildlife Station, near Flamingo Lake, will have a host of amenities and attractions, including hot air balloons that allow visitors to enjoy views of the wildlife and take in the Love Lakes from above.
There will be luxury camps and elevated walking trails that will connect the three lakes – Love, Qudra, and Flamingo. Kayak tours will also be offered across the three lakes.
The Adventure Station, located near Expo 2020 Lake, will include an adventure park near the Oryx platform, as well as walking and fitness trails. A sandy trail for cycling and walking will be added around Expo Lake, along with budget camps and restaurants.
The Cultural Experience Station, near the camel farm in Al Marmoom, will provide a traditional majlis and an entertainment theatre at the camel farm, where visitors can ride camels, explore the desert, and enjoy traditional meals.
At the Desert Adventure Station, a fully integrated area for adventure and desert sports will be developed, featuring dune bashing, desert cycling, dune climbing, sandboarding, and desert safari tours, among others.
The first phase of the rural and countryside plan includes the provision of 18 new services for residents of these areas. These include the establishment of three nurseries, seven parks and open spaces, and a hospital, a health centre, and an ambulance station.
Plans take shape
The Higher Committee for Urban Planning in Dubai is overseeing the implementation of the 37 projects as part of the comprehensive plan for the development of rural and countryside areas, which span 2,216 square kilometres. The wide-ranging strategy will include the development of cultural centres, healthcare facilities, additional transport options and an investment in infrastructure to improve the quality of life of rural communities.
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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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