Al Hilal's Brazilian forward Malcom, left, celebrates scoring their second goal against Pakhtakior with Marcos Leonardo, a summer signing from Benfica. Reuters
Al Hilal's Brazilian forward Malcom, left, celebrates scoring their second goal against Pakhtakior with Marcos Leonardo, a summer signing from Benfica. Reuters
Al Hilal's Brazilian forward Malcom, left, celebrates scoring their second goal against Pakhtakior with Marcos Leonardo, a summer signing from Benfica. Reuters
Al Hilal's Brazilian forward Malcom, left, celebrates scoring their second goal against Pakhtakior with Marcos Leonardo, a summer signing from Benfica. Reuters

AFC Champions League: Rest of Asia has work to do to bridge chasm created by Saudi spending


Paul Radley
  • English
  • Arabic

At the start of February, the manager of the UAE’s champion football club warned that Saudi Arabian spending would either crush everyone else in Gulf football or force them to invest to try to keep up.

Just over a month later, Milos Milojevic’s point has already been born out. While UAE involvement in the continent’s top club competition has ended, Saudi sides are bestriding it like giants.

The draw for the quarter-finals of the AFC Champions League Elite will take place on Monday. Three teams from the Kingdom – Al Hilal, Al Nassr and Al Ahli – are the financial powerhouses of the eight sides left standing.

The other participants from the west of Asia are Al Sadd, the two-time winners from Qatar, who knocked out Milojevic’s side, Al Wasl, in the last 16.

The make-up of the western half of the draw feels fitting in a competition which has two main sponsors from the Kingdom – Neom and Visit Saudi – with the other being Qatar Airways.

There is $10m on offer for the winners of Asia’s Champions League, and $4m for the losing finalists. Not exactly chump change, but the sort of figures that Cristiano Ronaldo, who has been leading the line for Nassr with distinction, would barely get out of bed for.

Ronaldo’s quarterly wages ($50m) are greater than the entire market value of the UAE’s costliest squad, which is that of outgoing Asian champions Al Ain ($49m).

That uses figures from the football statistics website transfermarkt.com. While market value figures are subjective, the source is consistent in its application.

According to that metric Al Wasl slightly overperformed by finishing fifth in the pool stage of the Champions League Elite.

Al Ain were the biggest underperformers. Their squad had the sixth best market value in the opening phase of the new format for Asia’s elite competition. Yet the defending champions finished dead last in the 12-team pool, surrendering their title with barely a whimper.

There is plenty of research that shows spend on wages, in particularly, corresponds closely to league positions in leading football leagues.

Milojevic, the Al Wasl manager, said it is difficult bridging the chasm to the Saudi clubs, but said his club are working hard to do it.

“We as coaches can work on things, and make the map for the players to travel,” Milojevic said. “In the two games [against Al Sadd], we created a lot of chances, in my eyes. We had a lot of shots on the goal.

“There is research – not just my idea – that says the more money you invest you will get more quality. I’m not the one who decides how much is invested in each country and I am happy with my players.

“For me, if you don’t have the biggest budget, you have to work more. You have to work smartly with recruiting and scouting, and you have to take your chances.”

Were it not for an 11-minute spell, inspired by Akram Afif in which Sadd scored three times, Wasl could foreseeably have progressed.

Milojevic said his side had been wasteful, but pointed out that Sadd have more experience of big games like that one.

They also have invested substantially. Their forward line included Claudinho, a Brazilian recruited for $22m in January, and Rafa Mujica, a Spanish striker who cost them $11m.

“I don’t think there is the type of investment there is in Qatar that there is in Saudi. Saudi is completely different,” Milojevic said.

“Unfortunately, I feel sorry for UAE and my club that we couldn’t have at least one club representing the country.”

There is at least one UAE side remaining in the Champions League Two, after Sharjah beat Dubai’s Shabab Al Ahli on penalties, in the small hours of Thursday morning. It was the second of five consecutive matches the UAE Pro League title rivals are playing against each other in various competitions.

Sharjah’s semi-final tie will pit them against a Saudi side – and one who prove the point that the lavish funding does not necessarily trickle down all the way through the league.

Al Taawoun upset expectations last season by finishing fourth, above Jeddah giants Al Ittihad and an Al Ettifaq side who were coached by Steven Gerrard.

Now under the guidance of one of just two Saudi coaches in the SPL, they are in mid-table in the league, but have progressed well in the continental competition.

Adel Taarabt, the former Tottenham Hotspur, AC Milan, and Benfica playmaker, said there is no reason for Sharjah to fear their next opponents just because they are from Saudi.

“They have a really strong competition and the league is much better than it used to be, but I think our league is good,” Taarabt said.

“We beat Shabab Al Ahli who are also a strong team. Let’s see. We are going to prepare well and we are going to go there to get through.”

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Sector: Entertainment 
 
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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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Updated: March 14, 2025, 8:53 AM