The new network is designed to help prevent a repeat of the severe floods in Dubai in April 2024. Chris Whiteoak / The National
The new network is designed to help prevent a repeat of the severe floods in Dubai in April 2024. Chris Whiteoak / The National
The new network is designed to help prevent a repeat of the severe floods in Dubai in April 2024. Chris Whiteoak / The National
The new network is designed to help prevent a repeat of the severe floods in Dubai in April 2024. Chris Whiteoak / The National

Dubai completes Dh277 million flood-busting drainage network


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Dubai Municipality on Wednesday announced the completion of a sewerage and rainwater drainage network at a total cost of Dh277 million.

It is the first major step towards completing the Tasreef project – the vision of Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, who last year approved the Dh30 billion plan to improve the emirate’s water drainage following record flooding in April.

The new network in Nad Al Sheba 3 spans a total of 24km and adds 11km of household connections to Dubai's main sewerage system.

An advanced pumping station has been installed, which can handle 4,000 litres of water per second. This is complemented by a 31km gravity-based drainage pipeline network, which will maintain system readiness during periods of heavy rainfall and mitigate flooding risks.

The overall Tasreef project is set to be completed by 2033.

How will the new drainage network help?

“This project is part of Dubai Municipality’s strategic efforts to develop and deliver world-class infrastructure that keeps pace with Dubai’s ambitions for global leadership and urban sustainability,” Marwan Ahmed bin Ghalita, director general of Dubai Municipality, said.

“Completing the Nad Al Sheba 3 project is a significant step towards connecting all areas of Dubai to a fully integrated sewerage and rainwater drainage network, ensuring the emirate’s readiness to face future climate challenges for the next 100 years.”

In addition to being part of the Tasreef project, the Nad Al Sheba 3 development is part of a planned Dh80 billion sewerage upgrade programme to help public health standards.

The pumping station and drainage pipeline will improve rainwater management and ensure efficient water flow towards the main network.

What is the Tasreef project?

The strategic project is a continuation of drainage projects launched by Dubai in 2019, covering the Expo Dubai area, Al Maktoum International Airport City and Jebel Ali.

The new projects will serve vital areas including Nad Al Hamar, and around Dubai International Airport, Garhoud, Rashidiya, Al Quoz, Zabeel, Al Wasl, Jumeirah and Al Badaa.

The system aims to increase rainwater drainage capacity by 700 per cent, meet the emirate’s needs for 100 years and ensure the city is ready to face “climate-related challenges”.

How floods make an impact

In April 2024, the UAE recorded its heaviest rain in 75 years. Buildings and roads were flooded, while cars were abandoned on motorways and flights were cancelled, delayed or diverted as a result of the severe storm.

While the floods' impact was immediate and wide-ranging, they continue to shape the Emirates – and not only in terms of government policy.

The flooding caused an increase in greenery in the country's desert landscapes. Vegetation in some areas grew by up to 40 per cent compared to the same time in 2023, and this has had a lasting impact, research discovered.

The study, co-written by Dr Diana Francis of Khalifa University and published in the npj Climate and Atmospheric Science journal, confirmed that human-driven climate change made last year's rainfall in the UAE far more likely in the future.

Its analysis of the effect of the flooding on urban infrastructure suggests existing drainage systems and land use policies need to be enhanced to cope with such extreme weather.

“Our cities are not designed to absorb these volumes of water,” Dr Francis said. “If we keep covering land with impermeable concrete, water has nowhere to go. We need to rethink urban planning with more green space and better drainage to reduce future damage.”

It is hoped this is where the Tasreef project will come in as, once completed, Dubai’s infrastructure will be able to handle more than 20 million cubic metres of water per day.

Aftermath of April 2024 floods – in pictures

  • Tankers clearing waterlogged roads near Discovery Gardens metro station in Dubai on April 22. Pawan Singh / The National
    Tankers clearing waterlogged roads near Discovery Gardens metro station in Dubai on April 22. Pawan Singh / The National
  • Many roads in Dubai have been flooded since last week's torrential rainfall. Pawan Singh / The National
    Many roads in Dubai have been flooded since last week's torrential rainfall. Pawan Singh / The National
  • The tankers are pumping the water from the roads. Pawan Singh / The National
    The tankers are pumping the water from the roads. Pawan Singh / The National
  • School buses on hand to drive pupils through the water after the flood. Antonie Robertson / The National
    School buses on hand to drive pupils through the water after the flood. Antonie Robertson / The National
  • Pupils are returning to school after many were closed due to the heavy rain and flooding. Antonie Robertson / The National
    Pupils are returning to school after many were closed due to the heavy rain and flooding. Antonie Robertson / The National
  • The clean-up is under way in District 5, Jumeirah Park. Antonie Robertson / The National
    The clean-up is under way in District 5, Jumeirah Park. Antonie Robertson / The National
  • District 5 residents deal with the aftermath of the flooding one week on. Antonie Robertson / The National
    District 5 residents deal with the aftermath of the flooding one week on. Antonie Robertson / The National

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: June 19, 2025, 5:02 AM