The Ajman enclave is home to the historic Masfout Castle. Image: Ajman Tourism
The Ajman enclave is home to the historic Masfout Castle. Image: Ajman Tourism
The Ajman enclave is home to the historic Masfout Castle. Image: Ajman Tourism
The Ajman enclave is home to the historic Masfout Castle. Image: Ajman Tourism

UAE

Government

Ruler of Ajman launches project to develop Masfout area

The initiative under the Emirates Villages project aims to attract 100,000 tourists

The National

June 26, 2023

  • English
  • Arabic

Sheikh Humaid bin Rashid Al Nuaimi, Ruler of Ajman, has launched a project to develop the Masfout area.

The initiative, which will begin later this year, includes the development of tourism, heritage and service facilities, and support for youth projects in the region.

The plan, which aims to attract 100,000 tourists, also includes the development of the aflaj irrigation systems and implementation of training programmes in the academic, practical and vocational fields.

The Masfout development scheme is the second under the Emirates Villages project, a Dh1 billion ($272.3 million) initiative aimed at creating a sustainable development model.

The goal is to develop 10 villages in the UAE. It will be led by the Emirates Development Council, in partnership with the government, the private sector and local communities.

The project is aimed at developing a sustainable model and creating economic and business opportunities in rural areas.

It seeks to create a micro-economy in each of the villages, achieve greater involvement from local communities and enhance the involvement of the private sector.

Surrounded by the emirates of Dubai and Ras Al Khaimah, as well as neighbouring Oman, Masfout is famous for its fertile agricultural lands and scenery.

It has several tourist attractions such as the Masfout Canyon, which is close to Hatta, and the historic Masfout Castle, a 19th-century structure that was restored in the late 1940s. The village is also home to Bin Sultan Mosque, which was built in 1815.

The first batch of villages included in the programme will offer 500 economic initiatives or projects for youths.

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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The bio

Studied up to grade 12 in Vatanappally, a village in India’s southern Thrissur district

Was a middle distance state athletics champion in school

Enjoys driving to Fujairah and Ras Al Khaimah with family

His dream is to continue working as a social worker and help people

Has seven diaries in which he has jotted down notes about his work and money he earned

Keeps the diaries in his car to remember his journey in the Emirates

Updated: June 26, 2023, 2:14 PM
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