UAE to invest up to Dh200 billion in renewable energy

The UAE is to invest hundreds of billions of dirhams in the renewable energy sector, it was announced on Monday.

Making the announcement on social media, Sheikh Mohammed bin Rashid, Prime Minister and Ruler of Dubai, said that the latest Cabinet meeting resulted in the approval of an updated national energy strategy.

“Our goal will be to triple the contribution of renewable energy in the coming seven years and inject national investments ranging from Dh150 to Dh200 billion during the same period to meet the increasing demand for energy in the country due to the accelerated economic growth,” Sheikh Mohammed wrote.

“We also approved our national strategy for hydrogen, which has recently emerged as one of the most important clean energy sources.

“The plan aims to establish the country as a producer and source of low-emission hydrogen over the next eight years by developing supply chains and creating hydrogen hubs to develop this promising industry, in addition to establishing a specialised national research and development centre for the hydrogen sector.”

Renewable energy, autonomous vehicles and financial stability were all discussed at the cabinet meeting. Dubai Media Office

Ministry of Investment

The Cabinet meeting also resulted in the creation of a new government ministry, with a mandate to focus on investment in the UAE.

The Ministry of Investment was established, with Mohamed Hassan Al Suwaidi announced as its minister.

“Our aim is to develop the investment vision of the UAE, and promote the investment environment and the competitiveness of this sector in the country,” said Sheikh Mohammed.

Human trafficking

Also discussed at the meeting was updating the UAE's law on fighting the unlawful transportation of people and forced labour.

Currently, the law stipulates a minimum fine of Dh100,000 and a minimum of five years in jail for offenders.

“Today, we approved several amendments to the law on combating human trafficking, which include tightening penalties and establishing services for victims, such as educational assistance and measures for their safe return to their home country,” wrote Sheikh Mohammed.

“We also criminalised incitement to commit the crime and increased the penalties imposed on the perpetrators. The United Arab Emirates does not tolerate this type of crime at all.”

Sheikh Mohammed emphasised that this humanitarian stance has been constant since the nation was created.

Ensuring financial stability

The establishment of a Financial Stability Council was also approved on Monday.

“The council's goal will be to enhance and protect financial stability in the country, monitor associated risks and deal with financial crises if they occur, in order to preserve the trajectory of the national economic development,” Sheikh Mohammed wrote.

“In addition, proactive measures will be developed to prevent exposing the country's economic, financial and monetary systems to high levels of risk.”

The UAE is a global financial hub trusted by millions of investors worldwide, the Prime Minister added. The goal is to preserve this trust in the best interest of the national economy.

Autonomous and electric vehicles

The first preliminary national licence for self-driving cars was approved at the Cabinet meeting and granted to a company, WeRide.

WeRide will begin testing all types of autonomous vehicles on UAE roads.

National policy for electric cars was also discussed, “which includes the establishment of a national network for electric vehicle charging stations, the regulation of the electric vehicle market, and the promotion of associated industries to ensure emission reduction, energy consumption reduction and the maintenance of the quality of roads in the United Arab Emirates”.

New appointments

Sheikha Mariam bint Mohamed was appointed President of the National Centre for Education Quality.

The centre will monitor education in the country to ensure improvement in the sector and prepare the next generation.

“We are optimistic about Sheikha Mariam's joining the educational system team in the country under the supervision of Sheikh Abdullah bin Zayed and optimistic about distinctive national educational outcomes,” Sheikh Mohammed wrote.

The Prime Minister shared his thoughts on the future of the Emirates, saying that even though progress will happen faster than before, the well-being of residents and visitors is always key.

“The world is changing rapidly, and leadership patterns are changing,” he said.

“Life in the country will accelerate in the coming years.

“The well-being and quality of life of individuals will remain a permanent priority on our government agenda.”

Heather, the Totality
Matthew Weiner,
Canongate

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 Women's Day

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Shelina Janmohamed: Why shouldn't a spouse be compensated fairly for housework?

Samar Elmnhrawy: How companies in the Middle East can catch up on gender equality

The National Editorial: Is there much to celebrate on International Women's Day 2021?

Key facilities

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
600-seat auditorium
Spaces for historical and cultural exploration
An elevated football field that doubles as a helipad
Specialist robotics and science laboratories
AR and VR-enabled learning centres
Disruption Lab and Research Centre for developing entrepreneurial skills