UAE's Ministry of Defence to buy L-15 Falcon jets from China

The Ministry of Defence plans to sign a contract to buy 12 military fighter jets from China, with the option to purchase 36 more at a later date.

In a major deal, the ministry confirmed it was in talks to secure the L-15 Falcon - described as a training and light attack aircraft - from China National Aero-Technology Import & Export Corporation (CATIC).

Tareq Al Hosani, chief executive of Tawazun Economic Council, said the deal is part of continuing efforts to diversify and modernise capabilities of the Air Force and units of the armed forces.

“We have reached the final stage in our talks with the Chinese side. The final contract will be signed soon,” he said in a statement.

“We trust that CATIC has advanced technology that enjoys global competitive advantages.”

No value of the deal was released but China sells the twin-seat L-15 Falcon for $10 million to $15 million per unit, industry reports said.

That would make the jet, which debuted at the Dubai Airshow in 2021, significantly cheaper than many fighters produced by the United States or Europe. One industry journal said the aircraft is regarded as versatile and "best in its class".

The MoD and Tawazun statement did not state which version of the L-15 it was looking to acquire.

First introduced in 2006, a more recent version called the L-15B has a weapons payload of four tonnes, with the instructor's rear seat turned into a weapons systems officer's seat to manage guided weapons.

The L-15 designation applies to export versions of the jet, which is called the Hongdu JL-10 in China.

Zambia's air force uses the L-15 and Uruguay and Venezuela have reportedly expressed an interest in the aircraft.

Tawazun, which manages the acquisitions and contracts of the UAE Armed Forces and Abu Dhabi Police, will work with strategic partners to develop the UAE’s defence capabilities, news agency Wam reported.

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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Essentials

The flights
Etihad and Emirates fly direct from the UAE to Delhi from about Dh950 return including taxes.
The hotels
Double rooms at Tijara Fort-Palace cost from 6,670 rupees (Dh377), including breakfast.
Doubles at Fort Bishangarh cost from 29,030 rupees (Dh1,641), including breakfast. Doubles at Narendra Bhawan cost from 15,360 rupees (Dh869). Doubles at Chanoud Garh cost from 19,840 rupees (Dh1,122), full board. Doubles at Fort Begu cost from 10,000 rupees (Dh565), including breakfast.
The tours
Amar Grover travelled with Wild Frontiers. A tailor-made, nine-day itinerary via New Delhi, with one night in Tijara and two nights in each of the remaining properties, including car/driver, costs from £1,445 (Dh6,968) per person.