Five warships, including the British Royal Navy's flagship, HMS Albion, have arrived in the Emirates for military exercises with the UAE Navy.
Five warships, including the British Royal Navy's flagship, HMS Albion, have arrived in the Emirates for military exercises with the UAE Navy.
Five warships, including the British Royal Navy's flagship, HMS Albion, have arrived in the Emirates for military exercises with the UAE Navy.
Five warships, including the British Royal Navy's flagship, HMS Albion, have arrived in the Emirates for military exercises with the UAE Navy.

British warships arrive in the Emirates


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ABU DHABI // The eighth HMS Albion, the British Royal Navy's flagship, arrived on its first visit to the UAE yesterday alongside four other British warships.

They are part of the Response Force Task Group, an initiative announced last year as part of Britain's strategic defence and security review.

They are in the Middle East to counter maritime terrorism and piracy in the Gulf, the Arabian Sea and the Gulf of Aden, and will begin Exercise Sea Khanjar - from the Arabic for "dagger" - a week of joint exercises with the UAE Navy and Marines on Saturday.

The intention, according to Britain's ambassador to the UAE, Dominic Jermey, is to "demonstrate our commitment to regional security but also to strengthen friendships and operational compatibility so that in times of need, when UK ships are operating together, they already know each other".

Accompanying the Albion is HMS Sutherland, a warship that can deploy arms including anti-aircraft missiles and anti-submarine missiles at short notice.

The Albion itself is a landing platform, able to carry up to 31 large trucks and 36 small vehicles. It also has armoured vehicles and full attack capabilities.

The exercises are being led by Commodore Tim Fraser, who oversees all maritime activity in the region on behalf of the British Royal Navy. They are the fourth set of exercises under Sea Khanjar - the first were in 2001 and the others in 2004 and 2009.

A vivid simulation of a missile defence exercise was performed yesterday on the Sutherland in front of reporters to assess operational readiness and demonstrate combat expertise.

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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