The fascination with which governments, entrepreneurs and thought leaders have greeted the rise of artificial intelligence was on show this week as not one, but two high-profile international gatherings focused on this transformational technology. Few attendees at the World Governments Summit in Dubai or the AI Action Summit in Paris doubted AI’s potential to change societies and economies. However – as is often the case – consensus on finding the best way forward is not as definitive.
On Tuesday, US Vice President JD Vance delivered a strong rebuke of “excessive regulation” when it comes to shaping AI. Speaking at the AI Action Summit in Paris, Mr Vance said “a new industrial revolution, one on par with the invention of the steam engine” would be at risk “if overregulation deters innovators from taking the risks necessary to advance the ball”.
Meanwhile, Kristalina Georgieva – managing director of the International Monetary Fund – struck a nuanced tone when she told the World Governments Summit that 60 per cent of jobs in advanced economies could be affected, transformed or eliminated owing to the adoption of the emerging technology. “[AI] can be a great story, a world that becomes more productive,” she said. “Or a sad story – a world that is more divided.”
Although it is true that companies and creators need freedom to flourish, the kind of laissez-faire approach championed by Mr Vance comes with its own risks. A failure to guide and control AI responsibly overlooks its transformative nature, its growing ubiquity, and its potential for rapid learning and self-development.
Naysayers predict a future in which the rampant and unfocused use of AI technology makes millions of people redundant. Historically, the introduction of such profound innovations has certainly led to economic and social upheaval – the Industrial Revolution that Mr Vance referred to was a time of intense class conflict as much as it was a new beginning. On the other hand, AI’s enthusiasts believe digital technologies, unimpeded by regulation, have the potential to improve everything from health care to transport and creativity to business. The reality lies somewhere between these two positions.
It is here that the UAE’s experience with AI stands out, for several reasons. The country’s considerable investment in and embrace of AI has been twinned with comprehensive regulatory guardrails. In addition to several digital strategies to oversee the Emirates’ use of AI, the country also works in partnership with the private sector to oversee its development; earlier this month, a foundation to promote responsible AI governance in the Middle East and the Global South was launched by US tech company Microsoft, Emirati AI firm G42 and Abu Dhabi's Mohamed bin Zayed University of Artificial Intelligence.
It is the balanced contribution of tech experts, policymakers, investors and educators that will provide the optimal outcome for adopting this powerful and now-unavoidable technology
The UAE has also convened AI proponents such as Elon Musk, who will speak at the WGS today, as well as others who have a more hestitant approach. By doing so, the Emirates continues to inform the global conversation on AI and looks set to continue on this path; next year’s AI Everything Global Summit and Expo in Abu Dhabi promises to be another valuable contribution to the debate.
Training and equipping people to best use AI is another area in which the UAE has been proactive. Last June, The National reported how Dubai schools were training teachers in AI to reduce workloads. Such initiatives are in concert with strategies such as Dubai’s One Million Arab Coders that aims to develop digital literacy in Arab youth.
Overall, it is the balanced contribution of tech experts, policymakers, investors and educators that will provide the optimal outcome for adopting this powerful and now-unavoidable technology. The road ahead is unclear, 100 per cent agreement will not always be possible, but with the right guardrails, AI could live up to its promise of providing a more prosperous future.
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
If you go
Flight connections to Ulaanbaatar are available through a variety of hubs, including Seoul and Beijing, with airlines including Mongolian Airlines and Korean Air. While some nationalities, such as Americans, don’t need a tourist visa for Mongolia, others, including UAE citizens, can obtain a visa on arrival, while others including UK citizens, need to obtain a visa in advance. Contact the Mongolian Embassy in the UAE for more information.
Nomadic Road offers expedition-style trips to Mongolia in January and August, and other destinations during most other months. Its nine-day August 2020 Mongolia trip will cost from $5,250 per person based on two sharing, including airport transfers, two nights’ hotel accommodation in Ulaanbaatar, vehicle rental, fuel, third party vehicle liability insurance, the services of a guide and support team, accommodation, food and entrance fees; nomadicroad.com
A fully guided three-day, two-night itinerary at Three Camel Lodge costs from $2,420 per person based on two sharing, including airport transfers, accommodation, meals and excursions including the Yol Valley and Flaming Cliffs. A return internal flight from Ulaanbaatar to Dalanzadgad costs $300 per person and the flight takes 90 minutes each way; threecamellodge.com
'Peninsula'
Stars: Gang Dong-won, Lee Jung-hyun, Lee Ra
Director: Yeon Sang-ho
Rating: 2/5
'How To Build A Boat'
Jonathan Gornall, Simon & Schuster
