UAE President Sheikh Mohamed speaks to US President Joe Biden at the G20 Summit in New Delhi last year. AFP
UAE President Sheikh Mohamed speaks to US President Joe Biden at the G20 Summit in New Delhi last year. AFP
UAE President Sheikh Mohamed speaks to US President Joe Biden at the G20 Summit in New Delhi last year. AFP
UAE President Sheikh Mohamed speaks to US President Joe Biden at the G20 Summit in New Delhi last year. AFP

President Sheikh Mohamed's Washington trip expected to see UAE-US ties deepen further


Mina Al-Oraibi
  • English
  • Arabic

UAE President Sheikh Mohamed’s visit to the US next week is expected to elevate UAE-US relations even further, with a focus on economic and technological ties.

While regional affairs are of major concern for Abu Dhabi and Washington, Dr Anwar Gargash, diplomatic adviser to the UAE President, has stressed that the visit will focus on bilateral ties and “how do we want to realign our relationship with America for the next 10 years”. In a briefing in Dubai on Thursday, Dr Gargash noted that “sometimes people like to talk about some tensions in the relationship, but the big story is that this is our most important strategic relationship, regardless of fair or foul weather”, adding that the “relationship is growing”.

Sheikh Mohamed has met US President Joe Biden and US Vice President Kamala Harris previously and has visited the US several times, but this will be his first official visit to the White House as president – and the first by any sitting UAE president.

Sheikh Mohamed and Mr Biden speak frequently by phone and met in Jeddah in 2022, and again at the G20 summit in New Delhi last year. While Dr Gargash expects Sheikh Mohamed and Mr Biden to discuss the war in Gaza and regional developments, he said “the main purpose of the visit, from an Emirati perspective, is investing in our future, and that's through an economic lens and through a real realignment with what's happening in AI and in technology”.

  • President Sheikh Mohamed meets with US President Joe Biden during the Jeddah Security and Development Summit in 2022. Abdulla Al Neyadi for the Presidential Court
    President Sheikh Mohamed meets with US President Joe Biden during the Jeddah Security and Development Summit in 2022. Abdulla Al Neyadi for the Presidential Court
  • UAE Founding Father, the late Sheikh Zayed bin Sultan Al Nahyan, welcomes former US president Jimmy Carter to the Emirates in 1990. Photo: UAE Embassy in the US
    UAE Founding Father, the late Sheikh Zayed bin Sultan Al Nahyan, welcomes former US president Jimmy Carter to the Emirates in 1990. Photo: UAE Embassy in the US
  • President Sheikh Mohamed, then Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, signs the guest book at the White House for a meeting with then US president Donald Trump, on May 15, 2017. Ryan Carter / Crown Prince Court - Abu Dhabi
    President Sheikh Mohamed, then Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, signs the guest book at the White House for a meeting with then US president Donald Trump, on May 15, 2017. Ryan Carter / Crown Prince Court - Abu Dhabi
  • Sheikh Mohamed with Mr Trump in the Oval Office of the White House. Ryan Carter / Crown Prince Court - Abu Dhabi
    Sheikh Mohamed with Mr Trump in the Oval Office of the White House. Ryan Carter / Crown Prince Court - Abu Dhabi
  • Sheikh Mohamed with then US president Barack Obama after attending the US-GCC Summit at Camp David in 2015. Crown Prince Court - Abu Dhabi
    Sheikh Mohamed with then US president Barack Obama after attending the US-GCC Summit at Camp David in 2015. Crown Prince Court - Abu Dhabi
  • Sheikh Mohamed and Mr Biden at Emirates Palace, Abu Dhabi, in 2016. Crown Prince Court - Abu Dhabi
    Sheikh Mohamed and Mr Biden at Emirates Palace, Abu Dhabi, in 2016. Crown Prince Court - Abu Dhabi
  • Sheikh Mohamed and Mr Obama at the GCC-US Summit in Riyadh in 2016. Crown Prince Court – Abu Dhabi
    Sheikh Mohamed and Mr Obama at the GCC-US Summit in Riyadh in 2016. Crown Prince Court – Abu Dhabi
  • Sheikh Mohamed with Mr Obama and US Secretary of State John Kerry in Riyadh in 2016. Crown Prince Court - Abu Dhabi
    Sheikh Mohamed with Mr Obama and US Secretary of State John Kerry in Riyadh in 2016. Crown Prince Court - Abu Dhabi
  • Sheikh Mohamed arrives at Camp David to attend the United States - Gulf Cooperation Council Summit hosted by Mr Obama in 2015. Crown Prince Court - Abu Dhabi
    Sheikh Mohamed arrives at Camp David to attend the United States - Gulf Cooperation Council Summit hosted by Mr Obama in 2015. Crown Prince Court - Abu Dhabi
  • Sheikh Mohamed and Mr Obama at the White House in 2015. Crown Prince Court - Abu Dhabi
    Sheikh Mohamed and Mr Obama at the White House in 2015. Crown Prince Court - Abu Dhabi
  • Then US president George W Bush welcomes Sheikh Mohamed to Camp David in Maryland in 2008. Jamie Rose for The National
    Then US president George W Bush welcomes Sheikh Mohamed to Camp David in Maryland in 2008. Jamie Rose for The National
  • Mr Bush and Sheikh Mohamed at the Saadiyat Island Cultural District Exhibition in Abu Dhabi in 2008. Philip Cheung / Abu Dhabi Media Company
    Mr Bush and Sheikh Mohamed at the Saadiyat Island Cultural District Exhibition in Abu Dhabi in 2008. Philip Cheung / Abu Dhabi Media Company
  • Sheikh Mohamed with Mr Bush, as Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, and Condoleezza Rice, then US Secretary of State, look on at a private dinner in the desert in 2008. Philip Cheung / Abu Dhabi Media Company
    Sheikh Mohamed with Mr Bush, as Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, and Condoleezza Rice, then US Secretary of State, look on at a private dinner in the desert in 2008. Philip Cheung / Abu Dhabi Media Company
  • Mr Bush meets the late President Sheikh Khalifa bin Zayed Al Nahyan in Abu Dhabi in 2008. Reuters
    Mr Bush meets the late President Sheikh Khalifa bin Zayed Al Nahyan in Abu Dhabi in 2008. Reuters

However, the “traditional issues remain: peace, security, stability, extremism, terrorism. These are areas that have become an important part of the relationship at all the years … and the US also feels they have a dependable partner, but that's not the purpose of the visit”.

The visit to the US and the focus on economic and technological issues while there is part of a wider UAE focus on “geoeconomics”, Dr Gargash explained. “We are in less of a geostrategic phase, we are more in a geoeconomic phase. So a lot of the things that the UAE is doing today is with perspective that economy first, prosperity first”.

Dr Gargash acknowledged that “doesn't mean you can ignore things happening in Gaza or happening in other areas, but as you try to manage your role you should never lose sight that the UAE is trying to move along an economic and technological view”. The motivation of this shift is driven in part by the realisation that the “hydrocarbon age” is transitioning. As the UAE is planning for the future “we feel that co-operation with the United States is essential for this success” in future-related issues.

Dr Gargash said US-UAE relations are no longer about “oil and defence”, where that may have been the case several decades ago. Today, it is a “360 degree relationship”, according to Dr Gargash, who gave examples like the presence of 60,000 Americans living in the UAE, $50 billion of trade and 142 flights a week from the UAE to the US. Investments in technology, such as the deal between G42 and Microsoft, show tangible advances behind these ties. Dr Gargash explained “these are not hypothetical areas of co-operation”.

In addition to economic and technological opportunities, issues such as climate, space and education are primary considerations for the UAE when it comes to next week’s visit and wider ties to the UAE, including personal relationships.

The UAE embassy in Washington said Sheikh Mohamed will meet Ms Harris next week, as well as other senior US officials, members of Congress and business leaders. The UAE President has met Ms Harris twice previously, at Cop28 and at Sheikh Khalifa's funeral.

Dr Gargash stressed the importance of climate action, particularly after the UAE hosted Cop28. He said “if we did not have the partnership with the United States between [Cop28 President] Sultan Al Jaber and [then US climate envoy] John Kerry, it would have been very difficult to come out with the outcome that Cop28 did … you need that sort of partnership”.

Sheikh Mohamed, who at the time was Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, meets then-vice president Joe Biden at Emirates Palace in March 2016. Photo: Crown Prince Court
Sheikh Mohamed, who at the time was Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, meets then-vice president Joe Biden at Emirates Palace in March 2016. Photo: Crown Prince Court
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

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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

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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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