Insight and opinion from The National’s editorial leadership
December 01, 2023
Fifty-two years ago this Saturday, the rulers of six emirates along the coast of the Arabian Peninsula emerged, led by Sheikh Zayed bin Sultan Al Nahyan, from a meeting at a small building now known as Union House, and raised, for the first time, the flag of a new nation. Two months later, they were joined by a seventh, Ras Al Khaimah, and the United Arab Emirates as we now know it was born.
The spirit of uniting different peoples under a common vision has been embedded deeply within the UAE’s national fabric ever since. Union Day, formerly known as National Day, takes place this year as Dubai hosts Cop28 – an international climate summit that epitomises that principle on a global scale.
The UAE has championed, in its role as Cop28 host, making inclusivity and open-mindedness central components of the summit’s discussions. The voices of groups too frequently underrepresented on the world stage – women, people with disabilities, indigenous people and youth – are expected to be amplified. Residents of the Emirates will remember that only four years ago inclusivity was at the forefront of the national conversation, when the country celebrated 2019 as the “Year of Tolerance”.
In an increasingly fractured, polarised and inward-looking world, the UAE bucks the trend
In that time, the UAE population, already home to nine million foreign residents hailing from more than 200 nations, has grown to become even more diverse. The opening of new churches, synagogues and Hindu temples, alongside mosques, is a testament to the spirit of fraternity that comes with having a global population. And the introduction of a long-term residency programme untethered to residents’ employment has reinforced the notion that diversity is a permanent feature of the country’s identity.
In an increasingly fractured, polarised and inward-looking world, all of this bucks the trend. Financial crises, refugee crises, trade wars, military wars and a pandemic have closed borders and had politicians in many countries that were formerly paragons of openness publicly questioning the value of diversity and cosmopolitanism. The “global village”, expounded in the 1960s by the philosopher Marshall McLuhan, seems in many corners of the world to be in decline.
Not so here. The UAE’s real-life Global Village, a cultural attraction and marketplace for food, clothing and handicrafts from around the world, has seen a record nine million visitors in the past year. The country has become central to the global political economy, as an entrepot, a source of capital and a promoter of dialogue. Openness and curiosity have positioned the Emirates as a leader in emerging fields like sustainable energy and artificial intelligence. In its own region, it is a beacon of stability; for 11 years running, the UAE has been named by respondents in the Arab Youth Survey as the top country young Arabs would like to live in.
None of this would have been possible without the statesmanship and values embodied in that foundational meeting of rulers on December 2, 1971. Union Day is a reminder to all of the UAE’s residents what unity means, here and around the world: that different peoples can and do have shared values and common interests, and when they come together they can achieve extraordinary things.
Founders: Sagar Chandiramani, Jatin Sharma and Monish Chandiramani
Based: Dubai
Industry: E-grocery
Initial investment: $150,000
Future plan: Raise $1.5m and enter Saudi Arabia next year
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
8.15pm: Al Shindagha Sprint (TB) Group 3 | $200,000 (D) | 1,200m
8.50pm: Handicap (TB) | $175,000 (D) | 1,600m
9.25pm: Handicap (TB) | $175,000 (T) | 2,000m
10pm: Handicap (TB) | $135,000 (T) | 1,600m
The Africa Institute 101
Housed on the same site as the original Africa Hall, which first hosted an Arab-African Symposium in 1976, the newly renovated building will be home to a think tank and postgraduate studies hub (it will offer master’s and PhD programmes). The centre will focus on both the historical and contemporary links between Africa and the Gulf, and will serve as a meeting place for conferences, symposia, lectures, film screenings, plays, musical performances and more. In fact, today it is hosting a symposium – 5-plus-1: Rethinking Abstraction that will look at the six decades of Frank Bowling’s career, as well as those of his contemporaries that invested social, cultural and personal meaning into abstraction.
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
