Manchester is home to one of the UK's biggest universities. The University of Manchester
Manchester is home to one of the UK's biggest universities. The University of Manchester
Manchester is home to one of the UK's biggest universities. The University of Manchester
Manchester is home to one of the UK's biggest universities. The University of Manchester


Manchester and the UAE have strong ties. Let's boost academic ones


Nancy Rothwell
Nancy Rothwell
  • English
  • Arabic

October 25, 2022

One of the many things the pandemic taught us was that there is no real substitute for personal contact. So, my recent and first visit to the UAE with a team from the University of Manchester, where I work, was especially significant. The timing meant I was able to mark the 15th anniversary of our hugely successful Middle East Centre in Dubai, which supports working professionals, and whose role we hope to expand across research and business engagement.

The UAE may now be very familiar to people around the world. But seeing is believing when it comes to the country. It is a sensory experience with tangible energy, world-class cities and familiar landmarks – you quickly run out of superlatives to describe it.

However, the Emirates, like my university, is much more than bricks and mortar. After three intense days of meetings with senior figures in government, academia and business, including many of our alumni, the abiding impressions were of the warmth and openness of people, optimism for the future, respect for the culture and heritage and genuine interest in our institution.

The visit confirmed our belief that there are many opportunities for further collaboration with UAE organisations across our three strategic pillars: teaching/learning, research and social responsibility. These are all areas of strong mutual interest with the UAE. Football may be important, but Manchester’s links with the UAE go way beyond it!

Football is at the heart of Manchester's relationship with the UAE. Reuters
Football is at the heart of Manchester's relationship with the UAE. Reuters

Our collaborative model means we prefer to partner with UAE organisations and universities and build relationships, supported by our Middle East Centre. This includes social responsibility, which has been embraced strongly by the centre and the student and alumni community. I saw this for myself at Dubai Cares and when planting young mangroves with Emirates Marine Environmental Group. Embedding social responsibility in the academic and corporate sectors can make a real difference and we can all contribute.

One area of opportunity discussed at almost every meeting was the potential to develop research and innovation partnerships in the UAE, where current programmes are recognised as high quality but still relatively modest in scale. Manchester’s global reputation is built on our innovation and research impact, and so collaboration in areas of shared importance, such as environmental sustainability, clean water, AI and technology look extremely promising.

The university already enjoys strong links with the UAE. This is illustrated through our collaboration and partnership on graphene, the revolutionary advanced material first isolated in Manchester, the use of which we are now seeing accelerate. Today, we have the Graphene Engineering Innovation Centre (supported by Masdar) and the Masdar Institute on campus. We are also building a deeper relationship with Khalifa University in Abu Dhabi around the applications and commercial development of this potentially world-changing innovation.

Graphene also plays a crucial role in sparking and promoting interest in STEM subjects (Science, Technology, Engineering, Maths) among younger generations of students – both women and men. In my experience, people’s passions and career paths are often inspired by a teacher, a role model, visits and stories.

The UAE has all these inspiring elements in place to help achieve its vision of a knowledge society. We saw for ourselves the work of Khalifa University as a beacon for STEM. In particular, I would like to see more women pursue these subjects generally. In the UK we are still under-represented, although our engineering department (the largest in the country) is led by a woman. Two important factors helping encourage women interested in STEM are successful role models and more career flexibility. I have always supported targets aimed at that goal and putting young women in senior roles, if they are ready, capable and well supported. The Emirati women I met were impressive in their confidence and ambition.

The University of Manchester campus in Dubai. The University of Manchester Worldwide
The University of Manchester campus in Dubai. The University of Manchester Worldwide

Science is important and I spent 10 years serving on the UK Prime Minister’s Council for Science & Technology, which advises on policy across a broad range of issues. Half the council members were successful women – all great role models. But we also discussed the arts and creativity as well, and we shouldn’t forget the real importance of the humanities, creative activities and industries and social sciences. At the University we are passionate supporters of creativity and host the Centre for Creative Writing, an art gallery, a museum and performance spaces for music and drama. This is what makes us human and so is important for all societies.

I see a very clear affinity between The University of Manchester and the UAE. Manchester was at the heart of the first industrial revolution and the UAE is a driver for Industry 4.0. The UAE has ambitions to become a knowledge society and universities can support this through research and by becoming innovation factories, while never forgetting universities’ unique role in discovery.

The job of the university’s Innovation Factory is to draw in ideas and support and encourage our staff and students to develop them. Our new innovation district (ID Manchester) represents a £1.5 billion investment commitment to attract innovative companies and strong entrepreneurs to sit alongside us as partners in innovation. We hope this will also benefit the UAE. I am already looking forward to my next visit.

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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Updated: October 25, 2022, 9:00 AM