For many people, midway through the year is a good time to take stock, review progress and plan for the future. The same is true for countries and economies, making this week’s news that Abu Dhabi’s non-oil foreign trade in the first half of this year jumped 34.7 per cent annually to Dh195.4 billion ($53.2 billion) significant.
As the emirate’s non-oil economy continues to expand amid diversification drives and government initiatives, these latest figures reveal that a thriving, post-hydrocarbons UAE is no longer about near-future speculation; it is unfolding now. The reasons behind this are varied but they are not only of national interest – they have global relevance too.
One important driver of the UAE’s flourishing non-oil trade is the country’s economic relationships with an expanding list of partner states. By signing new trade deals, such as the more than two dozen Comprehensive Economic Partnership Agreements (Cepas) struck in recent years, the Emirates is opening new markets, boosting trade and investment flows, and removing tariffs.
The UAE’s growing domestic manufacturing base also plays an important role in building up the non-oil economy; in 2023 alone, Abu Dhabi’s industrial sector contributed to 16.5 per cent to the emirate’s non-oil gross domestic product and represented 51.3 per cent of the UAE’s manufacturing sector.
Similarly, the UAE’s growing relevance as an AI and technology hub gives it a critical role in the 21st-century global economy. Research from PricewaterhouseCoopers, one of the world’s largest professional services companies, predicts that AI alone will contribute close to 14 per cent of the UAE’s GDP by 2030. This aligns with the country’s National Artificial Intelligence Strategy, which aims to have the technology contribute 20 per cent to non-oil GDP by 2031.
None of this is to suggest that energy is taking a back seat, rather that the focus has changed. Energy is the engine of economic growth and hydrocarbons globally continue to play a vital role. Entities like XRG and the Emirates Nuclear Energy Company are leading the drive to ensure energy demands are met and sources are diversified.
But the country is also investing billions in renewable energy projects and technologies. Although the focus so far has largely been on reducing the country’s carbon footprint and ensuring a sustainable supply of domestic power in the future, the UAE looks set to become an important exporter of green energy. The country’s National Hydrogen Strategy, for example, has the goal of becoming a top 10 global producer and supplier of low-emission hydrogen by 2031.
None of these developments came to fruition overnight. They have required significant strategising, infrastructural investment and technical know-how
All of the above require solid infrastructure, technical innovation and skilled people. This is certainly good news for the UAE because the country’s commitment to developing these resources will not only boost its non-oil trade, it will also benefit citizens and residents. A recent train journey from Dubai to Fujairah taken by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, showed how the Etihad Rail project will not only be critical in economic terms by boosting logistics, connectivity and supply chains, it will improve the quality of life for those who live here. Job creation, more foreign direct investment and local supply chains for clean energy technologies will be important and beneficial consequences of the UAE’s non-oil economy.
None of these developments came to fruition overnight. They have required significant strategising, infrastructural investment and technical know-how. That takes years of planning but we are now seeing the fruits of that long-term vision. Success in driving the UAE’s non-oil economy – alongside other important sectors such as tourism and financial services – shows that the country has been prescient in future proofing for uncertain times.
From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
THREE
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Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
Our family matters legal consultant
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Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Fifa Club World Cup quarter-final
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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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The BIO:
He became the first Emirati to climb Mount Everest in 2011, from the south section in Nepal
He ascended Mount Everest the next year from the more treacherous north Tibetan side
By 2015, he had completed the Explorers Grand Slam
Last year, he conquered K2, the world’s second-highest mountain located on the Pakistan-Chinese border
He carries dried camel meat, dried dates and a wheat mixture for the final summit push
His new goal is to climb 14 peaks that are more than 8,000 metres above sea level
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The five pillars of Islam
Pearls on a Branch: Oral Tales
Najlaa Khoury, Archipelago Books
Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
- Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.
David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East
