The UAE expects to see a “strong tourism recovery” this winter, Sheikh Mohammed bin Rashid, Prime Minister and Ruler of Dubai, said on Sunday following a meeting of the Cabinet in Abu Dhabi.
With the World Cup expected to bring a major boom to Dubai and Abu Dhabi, many hotels are expecting near full occupancy during November and December.
The Cabinet also approved temporary licensing for the first cargo aircraft in the region to operate on electricity.
Sheikh Mohammed said the Cabinet reviewed the UAE's competitive and development indicators, which showed the country is seeing growth levels higher than before the pandemic.
“Our indicators today are stronger than our indicators before the pandemic, and our economic growth is faster than before the pandemic, and our tourism, commercial and development sectors are larger than before the pandemic,” Sheikh Mohammed said on Twitter.
“Under the leadership of my brother Mohamed bin Zayed, the UAE has managed to overcome the Covid-19 pandemic. Our country has become globally prominent for its significant economic growth and development.
“Many countries in the East and West of the world are still suffering from the effects of the pandemic.
“Global trade has not yet regained its strength, but the UAE has become a model and a global exception in the speed and strength of growth after the pandemic.”
The development indices topped by the UAE rose from 121 in 2020 to 156 indicators and was ranked in the top ten in a further 432 global indicators, compared to 314 pre-pandemic.
“We are the first in the world in terms of security and safety, infrastructure, flexibility of regulations, and more,” Sheikh Mohammed said.
He said the UAE's foreign trade for the first six months of this year exceeded Dh1 trillion, compared to Dh840 billion before the pandemic. Economic growth so far this year has exceeded 22 per cent.
The tourism sector’s revenue exceeded Dh19bn during the first half of this year and the total hotel guests in the same period reached 12 million — an increase of 42 per cent.
“We expect a strong tourism performance in this winter season,” said Sheikh Mohammed.
Figures released in August showed Dubai hosted 7.12 million international visitors in the first half of 2022, nearly three times the 2.52 million tourists recorded in the same period last year. The number brings the emirate closer to its pre-Covid-19 pandemic levels of 8.36 million arrivals in the first six months of 2019.
Dubai’s Department of Economy and Tourism attributed the surge in visitor numbers to the momentum generated by Expo 2020 Dubai, which ended on March 31, and the emirate's status as a safe destination.
First electric cargo planes
The Cabinet agreed on the procedures of temporary licensing to operate electric cargo aircraft.
“We have approved in the Council of Ministers the temporary licence for the first cargo plane in the region that operates on completely clean electric energy and without any emissions — an important step that may contribute to changing the future of the shipping sector and its environmental impacts,” Sheikh Mohammed said on Twitter.
The global all-electric aircraft sector is expected to grow by 14 per cent to about $20 billion by 2030, up from $6bn last year, according to a new study by Dublin-based consultancy Research and Markets.
Industry stakeholders are developing core aircraft components and adopting technologies to transition the sector into a more sustainable means of air transportation and cut carbon emissions, Research and Markets said.
New public-private partnership law
During the meeting, the Cabinet also issued a new law regulating the partnership between the public and private sectors.
The law is aimed at organising partnerships between both sectors, encouraging the private sector to participate in the development and strategic projects, increasing investment in projects of economic and social values, and enhancing the competitiveness of projects in the local, regional and global markets.
“Our goal is to create opportunities and encourage the private sector to engage in developmental, economic and social projects and to develop partnerships that lead to improving the quality of public services,” said Sheikh Mohammed.
The Cabinet also approved several international agreements, including an agreement with Spain to co-operate in the fight against crime, a partnership agreement with Indonesia and an agreement with the International Committee of the Red Cross (ICRC) to establish an office in the UAE.
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Bugatti Chiron Super Sport - the specs:
Engine: 8.0-litre quad-turbo W16
Transmission: 7-speed DSG auto
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0-300kph in 12.1 seconds
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Bugatti Chiron Pur Sport - the specs:
Engine: 8.0-litre quad-turbo W16
Transmission: 7-speed DSG auto
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MATCH INFO
Manchester City 4 (Gundogan 8' (P), Bernardo Silva 19', Jesus 72', 75')
Fulham 0
Red cards: Tim Ream (Fulham)
Man of the Match: Gabriel Jesus (Manchester City)
Result
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7.05pm: Handicap (TB) $65,000 (Turf) 1,800m; Winner: Bright Melody, James Doyle, Charlie Appleby
7.40pm: Meydan Classic – Listed (TB) $88,000 (T) 1,600m; Winner: Naval Crown, Mickael Barzalona, Charlie Appleby
8.15pm: Nad Al Sheba Trophy – Group 3 (TB) $195,000 (T) 2,810m; Winner: Volcanic Sky, Frankie Dettori, Saeed bin Suroor
8.50pm: Dubai Millennium Stakes – Group 3 (TB) $130,000 (T) 2,000m; Winner: Star Safari, William Buick, Charlie Appleby
9.25pm: Meydan Challenge – Listed Handicap (TB) $88,000 (T) 1,400m; Winner: Zainhom, Dane O’Neill, Musabah Al Muhairi
The specs
Engine: 8.0-litre, quad-turbo 16-cylinder
Transmission: 7-speed auto
0-100kmh 2.3 seconds
0-200kmh 5.5 seconds
0-300kmh 11.6 seconds
Power: 1500hp
Torque: 1600Nm
Price: Dh13,400,000
On sale: now
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
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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
