Karim Benzema agrees deal to join Saudi Arabia’s Al Ittihad from Real Madrid

Karim Benzema is expected to be confirmed in the coming days as the latest star to move to Saudi Arabia’s top football league.

Representatives from the kingdom were in Madrid from Sunday to move forward with the deal, which is understood to be a two-year contract with the option of another season.

Benzema, who on Sunday scored in his final appearance for Madrid – the 2022 Ballon d’Or winner converted a penalty in the 1-1 draw at home to Athletic Bilbao - will join in Saudi former Madrid teammate Cristiano Ronaldo. The Portugal captain signed for Al Nassr in December and narrowly missed out on the top-flight title in his first season, as Ittihad sealed the trophy with one round to spare.

Sergio Busquets, Jordi Alba, Angel Di Maria, N’Golo Kante, Sadio Mane and Roberto Firmino are among other names linked with Saudi this summer.

Benzema moved to Madrid from Lyon in 2009 and went on to become the second-highest goalscorer in the club’s history, with 354 goals in 648 appearances. He is second only to Ronaldo.

During his 14 years at the Bernabeu, Benzema won 25 trophies, including four La Liga titles, five Champions League crowns, five Fifa Club World Cup trophies and the Copa del Rey three times.

Ittihad, meanwhile, last month sealed a ninth Saudi league title - and first in 14 years. The Jeddah club, managed by former Tottenham Hotspur head coach Nuno Espirito Santo, will compete in the 2023 Club World Cup in December. The tournament will be staged in the kingdom.

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

Karim Benzema agrees deal to join Saudi Arabia’s Al Ittihad from Real Madrid

Reigning Ballon d'Or winner's move to Saudi Pro League close to being confirmed, paving way for move big names to follow to the kingdom this summer

Ten tax points to be aware of in 2026

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