UAE delivers 1,000 tonnes of aid to drought-hit Somalia

An Emirati ship carrying more than 1,000 tonnes of food and relief supplies has arrived in Somalia to support millions of people affected by the country's worst drought in decades.

The crucial shipment was delivered to the port of Mogadishu in the African country, following directives by President Sheikh Mohamed.

The delivery was overseen by Emirates Red Crescent, the Zayed bin Sultan Al Nahyan Charitable and Humanitarian Foundation, and the Khalifa bin Zayed Al Nahyan Foundation.

Authorities have started distributing supplies to families in need and displaced people.

The aid will support about 2.5 million people affected by severe droughts caused by a lack of rain for three consecutive seasons.

In May, President Sheikh Mohamed ordered that Dh35 million of humanitarian aid be sent to Somalia to support its development and alleviate extreme poverty.

The assistance came a month after the UAE sent a ship with 572 tonnes of food supplies to the country.

One million people have now been displaced in the country due to the devastating droughts since January 2021, figures released on Thursday by the UN Refugee Agency, UNHCR, and the Norwegian Refugee Council showed.

“This one million milestone serves as a massive alarm bell for Somalia,” said Mohamed Abdi, the Norwegian Refugee Council’s country director in Somalia.

“Starvation is now haunting the entire country. We are seeing more and more families forced to leave everything behind because there is literally no water or food left in their villages. Aid funding urgently needs to be ramped up before it is too late.”

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Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
Premier League-standard football pitch
400m Olympic running track
NBA-spec basketball court with auditorium
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Spaces for historical and cultural exploration
An elevated football field that doubles as a helipad
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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

On the menu

First course

▶ Emirati sea bass tartare Yuzu and labneh mayo, avocado, green herbs, fermented tomato water

▶ The Tale of the Oyster Oyster tartare, Bahraini gum berry pickle

Second course

▶ Local mackerel Sourdough crouton, baharat oil, red radish, zaatar mayo

▶ One Flew Over the Cuckoo’s Nest Quail, smoked freekeh, cinnamon cocoa

Third course

▶ Bahraini bouillabaisse Venus clams, local prawns, fishfarm seabream, farro

▶ Lamb 2 ways Braised lamb, crispy lamb chop, bulgur, physalis

Dessert

▶ Lumi Black lemon ice cream, pistachio, pomegranate

▶ Black chocolate bar Dark chocolate, dates, caramel, camel milk ice cream