Sheikh Hamdan leads Executive Council meeting at Dubai's striking new library

Dubai's Executive Council met on Thursday to review gross domestic product growth and plan the development of a stronger knowledge economy.

Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, led decision-makers in a meeting at the new Mohammed bin Rashid Library.

GDP growth hit 6.2 per cent in 2021 and 5.9 per cent in the first quarter of 2022, he said, marking a strong recovery after the coronavirus pandemic stalled economies across the globe.

“We realise that the next stage of our development journey and our economic achievements will be based more on knowledge and the knowledge economy, and we are ready for the next stage of Dubai's development march,” he said on Twitter.

The government has plans to make the city a global centre for technology, coding and cryptocurrency trading, along with research and development.

Earlier, Dubai authorities said 6.17 million international visitors were recorded between January and May 2022, buoyed by Expo 2020 Dubai.

That marked growth of about 200 per cent compared to the same period in 2021, at the height of the pandemic.

“As we look ahead to the remainder of 2022 and beyond, we will harness the key elements that have ensured the industry’s steady growth year after year since we reopened to international visitors in 2020 — providing an unparalleled diverse destination offering that offers unique value and memorable experiences for our guests,” said Helal Almarri, director general of Dubai’s Department of Economy and Tourism.

Inside Mohammed bin Rashid Library: in pictures

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The Abu Dhabi Awards explained:

What are the awards? They honour anyone who has made a contribution to life in Abu Dhabi.

Are they open to only Emiratis? The awards are open to anyone, regardless of age or nationality, living anywhere in the world.

When do nominations close? The process concludes on December 31.

How do I nominate someone? Through the website.

When is the ceremony? The awards event will take place early next year.

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

Company profile

Name: Dukkantek

Started: January 2021

Founders: Sanad Yaghi, Ali Al Sayegh and Shadi Joulani

Based: UAE

Number of employees: 140

Sector: B2B Vertical SaaS(software as a service)

Investment: $5.2 million

Funding stage: Seed round

Investors: Global Founders Capital, Colle Capital Partners, Wamda Capital, Plug and Play, Comma Capital, Nowais Capital, Annex Investments and AMK Investment Office