What would persuade someone to take drugs, given the severity of the penalties in the UAE? Abu Dhabi Judicial Department Photo
What would persuade someone to take drugs, given the severity of the penalties in the UAE? Abu Dhabi Judicial Department Photo
What would persuade someone to take drugs, given the severity of the penalties in the UAE? Abu Dhabi Judicial Department Photo
What would persuade someone to take drugs, given the severity of the penalties in the UAE? Abu Dhabi Judicial Department Photo

Drug abuse is more than a social issue


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The rising number of deaths from drug abuse is an issue of concern. As Sheikh Saif bin Zayed, Deputy Prime Minister and Minister of Interior, told the Federal National Council on Tuesday, the number of cases increased to reach a death rate of 6.1 out of every million people last year – a figure which, while not as high as in other countries, is still a problem that affects the whole of society.

The use of drugs is a complex issue that involves many social and economic factors. Young people start taking drugs for reasonssuch as peer pressure, life stresses, problems at home, family complaints and travelling abroad, according to Dr Hamad Al Ghaferi, the general director of the National Rehabilitation Centre. One can argue that in a conservative culture, it’s easier and more discreet to consume drugs than to consume alcohol, which is usually done as a social activity.

The high cost of such an issue should not be underestimated. The treatment and rehab for drug addicts costs about Dh5.5 billion per year.

The number is high, no doubt, although the cost of treating one patient for three months is also high (Dh400,000). That high cost has in the past been used in drug information campaigns, to try to highlight to young Emiratis that getting into drugs also carries a cost to the country.

This is an area, however, where more numbers and more information would be helpful. Knowing how that Dh5.5bn is broken down would help our understanding of which policies are working and those that could be improved. Education about the health and societal dangers of drugs could also have a multiplying effect.

At the level of rehab, too, more statistics and research are needed. How many of those in rehab have self-referred? How many are addicts, and how many were required by the courts to attend? And for what offences – for marijuana, for pills or for other hard drugs? There also needs to be more follow-up research on what happens to the patients after they leave rehab.

There is also a more fundamental question: what would persuade someone to take drugs, given the severity of the penalties in the UAE?

The answers to those question matter, because they will make drug-use prevention and drug treatment more tailored, more effective and, in the long run, more cost-effective.

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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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