British Prime Minister Keir Starmer will use visits to the UAE and Saudi Arabia on Monday to drive investment into cities and regions across the UK.
Mr Starmer is set to pursue closer ties with the countries to increase investment, deepen defence and security ties, and boost growth and new opportunities.
The north of England will reap the immediate benefits from the closer co-operation with Graphene Innovation Manchester announcing on Monday the launch of the world’s first commercial production of graphene-enriched carbon fibre, with Saudi Arabia’s Neom Giga-Project.
The groundbreaking project progresses environmentally sustainable advanced materials and aims to generate £250 million ($318 million) of investment into a research and innovation centre in Greater Manchester, expected to create more than 1,000 skilled jobs in the region.
“I am in the Gulf forging closer ties and strengthening relationships that support our growth mission in every corner of the country," Mr Starmer said.
“I am determined to ensure international diplomacy drives local results, whether that is discussing how we can support regeneration in the UK or supporting business deals that create jobs. My international agenda starts at home.”
Further boosting the green-energy relationship between the UK and Saudi Arabia, Oxford-based private equity fund Hycap is supporting Saudi Arabia’s plans to reach net zero emissions by 2060 by investing £785 million to develop hydrogen mobility clusters in Northern Ireland and across the UK, creating more than 1,000 jobs.
The project will deliver hydrogen buses, trucks, critical components and other elements of hydrogen production and distribution, while removing more than 25 million tonnes of transport-related CO2 over the lifetime of the project.
The UK and Saudi Arabia are also working together to establish a new Joint International Institute for Clean Hydrogen.
The institute will be backed by a consortium of Saudi and British universities, including a leading role for Newcastle University, and develop expertise and skills in clean energy.
“Today’s agreements show how the UK is working with countries in the Gulf and elsewhere around the world to bring investment and jobs to Britain," Energy Secretary Ed Miliband said.
“Clean energy can be the source of the jobs of the future and these new investments and partnerships will deliver new jobs in new industries, boosting our country’s energy independence and our economic growth.
“This is the government’s Plan for Change in action, to make us a clean energy superpower and deliver a decade of renewal."
This month, UK cleantech leader Carbon Clean signed a collaboration with Saudi company Aramco to collaborate on innovative modular carbon-capture technology, aiming to create 2,000 UK jobs.
UK based Sustainable Cement Company, Next Generation SCM and Saudi-based City Cement Company have also linked up to produce 2.5 million tonnes a year of sustainable cement and concrete materials. The pioneering process is expected to drive £200 million of investment over the next five years and create more than 200 jobs in Saudi Arabia and the UK.
Greater Manchester is also benefitting from significant Saudi investment in housing, with International Investment Gate injecting £41 million into the regeneration of Brunswick Mill in Stockport, creating 277 flats and 24 commercial outlets.
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
The biog
Favourite Quote: “Real victories are those that protect human life, not those that result from its destruction emerge from its ashes,” by The late king Hussain of Jordan.
Favourite Hobby: Writing and cooking
Favourite Book: The Prophet by Gibran Khalil Gibran
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Honeymoonish
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Remaining Fixtures
Wednesday: West Indies v Scotland
Thursday: UAE v Zimbabwe
Friday: Afghanistan v Ireland
Sunday: Final
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