President Sheikh Mohamed meets UK Prime Minister Keir Starmer in Abu Dhabi


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President Sheikh Mohamed on Monday met Keir Starmer, the UK Prime Minister, in Abu Dhabi during which the British leader spoke of efforts to bolster trade ties in the Gulf and welcomed the collapse of the "brutal" Assad regime in Syria.

During the meeting at Al Shati Palace Sheikh Mohamed and Mr Starmer discussed areas of co-operation and the importance of historical ties.

Mr Starmer congratulated Sheikh Mohamed after the UAE celebrated Eid Al Etihad, its national day, last week. They also discussed their desire for peace in the Middle East.

Also in attendance were Sheikh Abdullah bin Zayed, Deputy Prime Minister and Minister of Foreign Affairs, and Sheikh Tahnoon bin Zayed, Deputy Ruler of Abu Dhabi and National Security Adviser. Mr Starmer stressed the need to forge a path to progress in Syria, and emphasised the importance of maintaining the Lebanon ceasefire and bringing an end to violence in Gaza, in an interview with Sky News Arabia.

"The people of Syria have lived under a brutal regime for far too long, so I welcome the fact that Assad is gone. I think the whole world welcomes that," he told the broadcaster.

"What we now need is a political way forward, a rejection of violence, rejection of terrorism … and the protection of civilians and minorities. So it is a really important moment, a really significant moment."

Hopes for peace in region

The UK Prime Minister told of his hopes that a peace deal could be brokered in Gaza to alleviate a worsening humanitarian crisis amid the continued war with Israel.

"I think there is now the potential in Gaza for that ceasefire," Mr Starmer said. "We've long been calling for it, but there are intense discussions going on now which are intended to, and I hope will, lead to a much-needed ceasefire, which will allow the remaining hostages to be released, will allow desperately needed humanitarian aid to go into Gaza and open the door for the only solution in Gaza, which is a political solution."

In a bid to secure a ceasefire in the Israel-Hezbollah conflict, the UK will provide the Lebanese Armed Forces with training and kit.

The package supports the initial training of hundreds of recruits and provides equipment through contractors to bolster the LAF’s ability to maintain security in southern Lebanon.

The UK has also increased work to support the Palestinian Authority as part of the drive to a two-state solution to the Israel-Palestine question.

Keir Starmer visits the UAE - in pictures

  • President Sheikh Mohammed receives Britain's Prime Minister Keir Starmer in Abu Dhabi. Reuters
    President Sheikh Mohammed receives Britain's Prime Minister Keir Starmer in Abu Dhabi. Reuters
  • Mr Starmer with Sheikh Mohamed at Qasr Al Shati Palace. AFP
    Mr Starmer with Sheikh Mohamed at Qasr Al Shati Palace. AFP
  • Britain's Prime Minister is making the trip to strengthen trade ties in the Gulf. AFP
    Britain's Prime Minister is making the trip to strengthen trade ties in the Gulf. AFP
  • Mr Starmer is welcomed to Sheikh Zayed Grand Mosque in Abu Dhabi. Reuters
    Mr Starmer is welcomed to Sheikh Zayed Grand Mosque in Abu Dhabi. Reuters
  • Mr Starmer at Sheikh Zayed Grand Mosque. Reuters
    Mr Starmer at Sheikh Zayed Grand Mosque. Reuters
  • As part of his visit, Mr Starmer is seeking stronger economic and defence ties with the UAE. AP
    As part of his visit, Mr Starmer is seeking stronger economic and defence ties with the UAE. AP
  • Mr Starmer is led by Sheikh Zayed Grand Mosque's director general Yousef Al Obaidli and tour guide Mahra as he tours the site. Reuters
    Mr Starmer is led by Sheikh Zayed Grand Mosque's director general Yousef Al Obaidli and tour guide Mahra as he tours the site. Reuters
  • Mr Starmer visited the mosque in Abu Dhabi as part of a trip to the UAE. Reuters
    Mr Starmer visited the mosque in Abu Dhabi as part of a trip to the UAE. Reuters
  • Mr Starmer is led by director general Yousef Al Obaidli and a tour guide, Mahra, during his visit. AP
    Mr Starmer is led by director general Yousef Al Obaidli and a tour guide, Mahra, during his visit. AP
  • Mr Starmer will also visit Saudi Arabia this week. AP
    Mr Starmer will also visit Saudi Arabia this week. AP
  • The visit by Mr Starmer is his first to the region since he was elected as Britain's Prime Minister this year. Reuters
    The visit by Mr Starmer is his first to the region since he was elected as Britain's Prime Minister this year. Reuters
  • On Sunday, a Downing Street statement described the UAE and Saudi Arabia as 'some of the UK's most vital modern-day partners'. Getty Images
    On Sunday, a Downing Street statement described the UAE and Saudi Arabia as 'some of the UK's most vital modern-day partners'. Getty Images
  • Mr Starmer also visited Saudi Arabia for talks with Crown Prince Mohammed bin Salman at the Royal Court in Riyadh. AFP
    Mr Starmer also visited Saudi Arabia for talks with Crown Prince Mohammed bin Salman at the Royal Court in Riyadh. AFP
  • Mr Starmer meets Saudi officials as he arrives at the Royal Court in Riyadh. Getty Images
    Mr Starmer meets Saudi officials as he arrives at the Royal Court in Riyadh. Getty Images
  • Mr Starmer arrives at King Khalid International Airport in Riyadh. Reuters
    Mr Starmer arrives at King Khalid International Airport in Riyadh. Reuters

Turning to his visit to the Emirates, Mr Starmer underlined the significance of the UAE-UK partnership and stated his commitment to furthering well-established ties.

"UAE is a major and strategic and important partner to the UK," said Mr Starmer. "It is significant. This is my first Gulf state as Prime Minister that I've visited.

"And my reason for being here is to try to create the opportunity to enhance that partnership, whether that's on trade and investment, whether it's on defence and security, energy, AI.

"I think the potential is there, but this is a very important strategic partnership and I'm very pleased to be here."

Gulf tour

Mr Starmer's visited the landmark Sheikh Zayed Grand Mosque on Monday, where he was received by Yousef Al Obaidli, director general of the mosque, who showed him around the site.

He arrived in the UAE on Sunday. He travelled to Saudi Arabia late on Monday for discussions with Crown Prince Mohammed bin Salman. He was greeted at King Khalid International Airport by the deputy governor of Riyadh region, Prince Mohammed bin Abdulrahman bin Abdulaziz, the Saudi Press Agency reported.

Crown Prince Mohammed later received Mr Starmer at Al Yamamah Palace in the Saudi capital, where an official reception was held in his honour before the two men held "extensive talks", SPA said.

Keir Starmer visits Saudi Arabia - in pictures

  • Saudi Crown Prince Mohammed bin Salman welcomes British Prime Minister Keir Starmer to Riyadh on December 9. All photos: SPA
    Saudi Crown Prince Mohammed bin Salman welcomes British Prime Minister Keir Starmer to Riyadh on December 9. All photos: SPA
  • Mr Starmer and Prince Mohammed in Riyadh
    Mr Starmer and Prince Mohammed in Riyadh
  • Prince Mohammed guides Mr Starmer before their talks
    Prince Mohammed guides Mr Starmer before their talks
  • Prince Mohammed and Mr Starmer sit for talks
    Prince Mohammed and Mr Starmer sit for talks
  • Earlier, Mr Starmer was welcomed to the kingdom by the Deputy Governor of the Saudi Arabian Riyadh region, Prince Mohammed bin Abdulrahman
    Earlier, Mr Starmer was welcomed to the kingdom by the Deputy Governor of the Saudi Arabian Riyadh region, Prince Mohammed bin Abdulrahman
  • Prince Mohammed bin Abdulrahman walks Mr Starmer from his plane
    Prince Mohammed bin Abdulrahman walks Mr Starmer from his plane
  • Mr Starmer is greeted by Prince Mohammed bin Abdulrahman in Riyadh. SPA
    Mr Starmer is greeted by Prince Mohammed bin Abdulrahman in Riyadh. SPA
  • Mr Starmer and Prince Mohammed bin Abdulrahman talk. SPA
    Mr Starmer and Prince Mohammed bin Abdulrahman talk. SPA

During the meeting the British leader discussed the shared challenges and opportunities between the two countries, including in defence and security, growth, and research and development

Mr Starmer said Saudi Arabia is already playing a central role in supporting growth and job creation in the UK, especially through the green energy sector, and the leaders agreed that the relationship between the two countries is also central to regional stability.

On Gaza, he pushed for more aid to reach the enclave and welcomed Prince Mohammed’s reflection on how the suffering on all sides could be ended. At the end of the meeting, Mr Starmer invited Prince Mohammed to visit the UK, adding he hoped the leaders would be able to watch a game of football in between meetings.

No 10 hopes the visit will help consolidate partnerships focused on “driving high-quality growth”, with UAE investment in the UK valued at £23 billion ($28 million). British trade with Saudi Arabia, meanwhile, is thought to be worth £17 billion.

“Driving long-term growth at home requires us to strengthen partnerships abroad,” Mr Starmer said.

He and Qatari Emir Sheikh Tamim last week agreed on a long-term green energy partnership, pledged to deepen defence and security ties and discussed the importance of regional stability. The UK Prime Minister is also expected to travel to Cyprus, where he will meet President Nikos Christodoulides in the capital Nicosia on Tuesday, before meeting British troops on the Mediterranean island who are posted over Christmas.

German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution

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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

Updated: March 19, 2025, 9:56 AM