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”.
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”.
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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Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
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The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
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Profile
Co-founders of the company: Vilhelm Hedberg and Ravi Bhusari
Launch year: In 2016 ekar launched and signed an agreement with Etihad Airways in Abu Dhabi. In January 2017 ekar launched in Dubai in a partnership with the RTA.
Number of employees: Over 50
Financing stage: Series B currently being finalised
Investors: Series A - Audacia Capital
Sector of operation: Transport