UAE to seek common ground with Trump on Gaza, envoy says

World Governments Summit: live updates

The UAE’s diplomatic strategy is not based on any one president in the White House, Minister of State and UAE ambassador to the US Yousef Al Otaiba said.

Mr Al Otaiba said he had been in Washington for years and the approach was much broader than election cycles. Speaking at the World Governments Summit in Dubai on Wednesday, the envoy said how the UAE got its message out was more important.

“How do we tell people who we are, what our priorities are, what our values are,” said Mr Al Otaiba, responding to a question about the impact on diplomacy of Donald Trump as president. “That is what we focus on – not really who's in the White House.”

Mr Al Otaiba said he believed the US did listen to the UAE on certain messages such as business, investments and they “sometimes listen” to advice on regional issues. But the UAE was not “shy” and made our “voices heard and we are very outspoken and unapologetic about it”.

“Sometimes our friends listen to us and sometimes they don't. Sometimes we agree on certain positions; sometimes we disagree,” he said. “We've always strived to find common ground.”

When asked about finding common ground with the current administration on Gaza, he said the UAE was “going to try”.

“I think the current approach is going to be difficult but at the end of the day we're all in the solution-seeking business. We just don't know where it's going to land yet,” said Mr Al Otaiba.

The comments came in a talk on “public diplomacy in action” with the questions posed by journalist Hadley Gamble. The envoy said the UAE had “honest conversations with every US administration”.

“We've had challenges with previous administrations where we had very, very tough conversations in the past,” he said. “It's always about trying to find a solution and trying to find common ground and, right now, this particular set of issues is challenging. But we'll find a way through.”

Mr Al Otaiba has been envoy since 2008. In that time there has been a flourishing of relations between the two countries. Bilateral trade has surged, partnerships boosted and major US institutions such as the Cleveland Clinic and New York University have established outposts in the UAE.

In a wide-ranging conversation, Mr Al Otaiba said he had worked really hard during his tenure to make sure there was a good relationship with both sides, Democrat and Republican, despite it being “increasingly difficult”. “Otherwise we will be at a disadvantage,” he said.

When asked about Mr Trump’s moves to cut the USAID programme, he said an unambiguous approach is “tough” and, separately, if the American dream had “died”, Mr Al Otaiba said there was a lot of people who still wanted to go to the US.

“I still see it around the world,” he said. “I think people want to go. Maybe it's not what it used to be.”

The ambassador also reflected on artificial intelligence. AI has been a major part of the summit, dominating the rooms at the Madinat Jumeirah location but it could also be heard in hushed tones in the corridors. Mr Al Otaiba said the advent of the Chinese AI model, DeepSeek, apparently developed at a cheaper cost, was not going to change the UAE’s approach.

“People should watch this space both in the UAE and in our investments very carefully,” he said. “Because what I think is going to happen here if our dreams come true … this is going to be, hands down, the most important AI hub in the world.”

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How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

Top investing tips for UAE residents in 2021

Build an emergency fund: Make sure you have enough cash to cover six months of expenses as a buffer against unexpected problems before you begin investing, advises Steve Cronin, the founder of DeadSimpleSaving.com.

Think long-term: When you invest, you need to have a long-term mindset, so don’t worry about momentary ups and downs in the stock market.

Invest worldwide: Diversify your investments globally, ideally by way of a global stock index fund.

Is your money tied up: Avoid anything where you cannot get your money back in full within a month at any time without any penalty.

Skip past the promises: “If an investment product is offering more than 10 per cent return per year, it is either extremely risky or a scam,” Mr Cronin says.

Choose plans with low fees: Make sure that any funds you buy do not charge more than 1 per cent in fees, Mr Cronin says. “If you invest by yourself, you can easily stay below this figure.” Managed funds and commissionable investments often come with higher fees.

Be sceptical about recommendations: If someone suggests an investment to you, ask if they stand to gain, advises Mr Cronin. “If they are receiving commission, they are unlikely to recommend an investment that’s best for you.”

Get financially independent: Mr Cronin advises UAE residents to pursue financial independence. Start with a Google search and improve your knowledge via expat investing websites or Facebook groups such as SimplyFI.

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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