• Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, welcomes Turkish President Recep Tayyip Erdogan to Expo 2020 Dubai. Photo: Dubai Media Office
    Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, welcomes Turkish President Recep Tayyip Erdogan to Expo 2020 Dubai. Photo: Dubai Media Office
  • Sheikh Mohammed and Mr Erdogan pictured at Expo 2020 Dubai. Photo: Dubai Media Office
    Sheikh Mohammed and Mr Erdogan pictured at Expo 2020 Dubai. Photo: Dubai Media Office
  • Sheikh Mohammed, Mr Erdogan, and an official, tour Expo 2020 Dubai. Photo: Dubai Media Office
    Sheikh Mohammed, Mr Erdogan, and an official, tour Expo 2020 Dubai. Photo: Dubai Media Office
  • The Turkish president is in the UAE on his first official visit to the Emirates in almost a decade. Photo: Dubai Media Office
    The Turkish president is in the UAE on his first official visit to the Emirates in almost a decade. Photo: Dubai Media Office
  • Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, hosts an official reception for Mr Erdogan at Qasr Al Watan. All photos: Ministry of Presidential Affairs
    Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, hosts an official reception for Mr Erdogan at Qasr Al Watan. All photos: Ministry of Presidential Affairs
  • Sheikh Saif bin Zayed, Deputy Prime Minister and Minister of Interior, left, and Sheikh Mansour bin Zayed, Deputy Prime Minister and Minister of Presidential Affairs, attend the reception for the official visit of Mr Erdogan.
    Sheikh Saif bin Zayed, Deputy Prime Minister and Minister of Interior, left, and Sheikh Mansour bin Zayed, Deputy Prime Minister and Minister of Presidential Affairs, attend the reception for the official visit of Mr Erdogan.
  • President Erdogan attends the reception at the palace in Abu Dhabi.
    President Erdogan attends the reception at the palace in Abu Dhabi.
  • Sheikh Mohamed meets Mr Erdogan at Qasr Al Watan. With them is Sheikh Tahnoon bin Zayed, UAE National Security Adviser, right
    Sheikh Mohamed meets Mr Erdogan at Qasr Al Watan. With them is Sheikh Tahnoon bin Zayed, UAE National Security Adviser, right
  • Sheikh Mohamed hosts the official reception to welcome Mr Erdogan to the Emirates.
    Sheikh Mohamed hosts the official reception to welcome Mr Erdogan to the Emirates.
  • Sheikh Mohamed receives Mr Erdogan on his arrival at the Presidential Airport.
    Sheikh Mohamed receives Mr Erdogan on his arrival at the Presidential Airport.
  • Sheikh Mohamed and the Turkish president stand for their countries' national anthems during the official reception in Abu Dhabi.
    Sheikh Mohamed and the Turkish president stand for their countries' national anthems during the official reception in Abu Dhabi.
  • President Erdogan signs the guest book at Qasr Al Watan as Sheikh Mohamed looks on.
    President Erdogan signs the guest book at Qasr Al Watan as Sheikh Mohamed looks on.
  • Members of the UAE Armed Forces Cavalry Division take part in the welcoming ceremony.
    Members of the UAE Armed Forces Cavalry Division take part in the welcoming ceremony.
  • Sheikh Mohamed greets President Erdogan at the Presidential Airport in Abu Dhabi.
    Sheikh Mohamed greets President Erdogan at the Presidential Airport in Abu Dhabi.
  • Traditional dancers welcome the Turkish president on his first visit to the Emirates in nine years.
    Traditional dancers welcome the Turkish president on his first visit to the Emirates in nine years.
  • Al Forsan aerobatic team mark the visit with a colourful flypast.
    Al Forsan aerobatic team mark the visit with a colourful flypast.
  • Sheikh Mohamed and Mr Erdogan are greeted by a military guard of honour.
    Sheikh Mohamed and Mr Erdogan are greeted by a military guard of honour.
  • Sheikh Mohamed and the Turkish president stand for their countries' national anthems.
    Sheikh Mohamed and the Turkish president stand for their countries' national anthems.
  • Mounted cavalry riders escort the motorcade of the Turkish president.
    Mounted cavalry riders escort the motorcade of the Turkish president.
  • Traditional dancers perform during the official reception at Qasr Al Watan.
    Traditional dancers perform during the official reception at Qasr Al Watan.

Turkey's President Erdogan arrives on first official visit to UAE in nearly a decade


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Latest: Sheikh Mohamed holds talks with Turkey's President Erdogan in Abu Dhabi

Turkish President Recep Tayyip Erdogan arrived in Abu Dhabi on Monday for his first official visit to the UAE in almost a decade.

He was met by Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, along with Sheikh Mansour bin Zayed, Deputy Prime Minister and Minister of Presidential Affairs, state news agency Wam reported.

Mr Erdogan will spend two days in the Emirates to boost ties between the two countries.

Television cameras showed the Turkish leader's journey through the city to Qasr Al Watan, the Presidential Palace.

In the palace's main hall, an honour guard saluted and a military band played the national anthems of both nations in the presence of Mr Erdogan and Sheikh Mohamed.

On Tuesday, Mr Erdogan is expected at Expo 2020 Dubai for Turkey's national day of celebrations.

Dr Anwar Gargash, diplomatic adviser to UAE President Sheikh Khalifa, earlier said Mr Erdogan's visit to the UAE "opens a new positive page in the bilateral relations between the two countries, and is in line with the UAE's direction towards strengthening bridges of communication and cooperation aimed at stability and prosperity in the region."

Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, met Mr Erdogan in Ankara two months ago, in his first visit to Turkey in close to a decade.

During the visit, the UAE announced it was setting up a $10 billion investment fund in Turkey.

The visit and investment pledge marked a significant improvement in relations. Monday's visit is expected to cement those efforts, with ties expected to enter a new phase.

The UAE is Turkey’s top trading partner among the GCC countries. Bilateral trade between the two countries in 2020 reached $8 billion.

The UAE leadership believes that strengthening bilateral ties between the two countries will contribute to regional stability, prosperity and peace, news agency Wam reported.

Earlier this month it was announced Mr Erdogan, 67, had contracted Covid-19 shortly after a visit to Ukraine. He had only mild symptoms and put this down to him being fully vaccinated and having received the booster.

President Erdogan arrives in UAE - in pictures

  • Turkish President Recep Tayyip Erdogan and Crown Prince of Abu Dhabi Sheikh Mohamed bin Zayed Erdogan pictured at Abu Dhabi airport's presidential terminal. Photo: Turkish President Press Office
    Turkish President Recep Tayyip Erdogan and Crown Prince of Abu Dhabi Sheikh Mohamed bin Zayed Erdogan pictured at Abu Dhabi airport's presidential terminal. Photo: Turkish President Press Office
  • President Erdogan arrives in Abu Dhabi. Photo: Turkish President Press Office
    President Erdogan arrives in Abu Dhabi. Photo: Turkish President Press Office
  • Turkish President Erdogan's motorcade arrives at Qasr Al Qatan in Abu Dhabi. Photo: Turkish President Press Office
    Turkish President Erdogan's motorcade arrives at Qasr Al Qatan in Abu Dhabi. Photo: Turkish President Press Office
  • Turkish President Recep Tayyip Erdogan, left, and Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed Al Nahyan, second right, arrive at Qasr Al-Watan in Abu Dhabi, United Arab Emirates, Monday, Feb. 14, 2022. Erdogan traveled Monday to the United Arab Emirates, a trip signaling a further thaw in relations strained over the two nations' approaches to Islamists in the wake of the 2011 Arab Spring. (AP Photo / Jon Gambrell)
    Turkish President Recep Tayyip Erdogan, left, and Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed Al Nahyan, second right, arrive at Qasr Al-Watan in Abu Dhabi, United Arab Emirates, Monday, Feb. 14, 2022. Erdogan traveled Monday to the United Arab Emirates, a trip signaling a further thaw in relations strained over the two nations' approaches to Islamists in the wake of the 2011 Arab Spring. (AP Photo / Jon Gambrell)
  • President Erdogan and Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed inspect over an honour guard at Qasr Al Watan. AP Photo / Jon Gambrell
    President Erdogan and Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed inspect over an honour guard at Qasr Al Watan. AP Photo / Jon Gambrell
  • President Erdogan and Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed inspect an honour guard at Qasr Al Watan
    President Erdogan and Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed inspect an honour guard at Qasr Al Watan
  • President Erdogan and Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed inspect an honour guard at Qasr Al Watan
    President Erdogan and Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed inspect an honour guard at Qasr Al Watan
  • Abdullah bin Touq Al Marri, Minister of Economy, and Mehmet Muş, Turkish Minister of Commerce. Photo: WAM
    Abdullah bin Touq Al Marri, Minister of Economy, and Mehmet Muş, Turkish Minister of Commerce. Photo: WAM
  • Thani Al Zeyoudi, Minister of State for Foreign Trade and Adil Karaismailoğlu, Minister of Transport and Infrastructure. Photo: WAM
    Thani Al Zeyoudi, Minister of State for Foreign Trade and Adil Karaismailoğlu, Minister of Transport and Infrastructure. Photo: WAM
  • Dr Abdul Rahman Mohammed Al Owais, Minster of Health and Prevention and Mevlut Cavusoglu, Turkish Minister of Foreign Affairs. Photo: WAM
    Dr Abdul Rahman Mohammed Al Owais, Minster of Health and Prevention and Mevlut Cavusoglu, Turkish Minister of Foreign Affairs. Photo: WAM
  • Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, and Mevlut Cavusoglu, Turkish Minister of Foreign Affairs. Photo: WAM
    Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, and Mevlut Cavusoglu, Turkish Minister of Foreign Affairs. Photo: WAM

Speaking to journalists after Friday prayers, he said: “I overcame it very, very easily. It was certainly because of the vaccination. I had two doses of CoronaVac, a Chinese-made inactive vaccine and three doses of Pfizer-BioNTech vaccine.

"It only took a few days before my test turned negative."

His wife has also made a full recovery.

Mr Erdogan was last on an official visit to the Emirates in February 2013 for the Government Communication Forum in Sharjah.

Growing Turkish community upbeat

Ahmet Kayhan, adviser to the chairman of Dogus Group – one of Turkey’s largest conglomerates, said that efforts to improve UAE and Turkey relations would benefit businesses.

“There’s been a lot of interest from businesses for investment," said Mr Kayhan, who is also chief executive of Dubai-based Reidin Real Estate Information.

“In the last couple of months, we’ve seen an increasing interest by Turkish companies wanting to set up businesses in the UAE.

“I think this will continue, especially in the real estate market because the UAE offers one of the strongest real estate markets in the world that is high yield, high rental yield and a strong currency.”

Yahya Tosun, partner of the Tosun Dental Clinic in Dubai's Jumeirah district, moved to the UAE from Turkey in 2004. He said that the Turkish and Emirati peoples are natural friends and partners.

He believes that more professionals would like to explore opportunities in the UAE now that relations between the two countries are improving.

“From my industry's point of view, what I'm seeing is that there are more doctors who are interested in joining UAE healthcare," he said.

“There is also a huge interest from Turkish population, such as entrepreneurs who want to come and open major restaurants or hotels.

“It is also because of the cultural resemblance between Turkey and the UAE, so we feel more attracted by the UAE.

“The Turkish population is growing in Dubai. When I came here in 2004, it was only a few thousands, and now it’s more than 20,000.”

Key developments

All times UTC 4

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: February 14, 2022, 6:38 PM