UAE at 50: Ruler of Dubai and Crown Prince of Abu Dhabi to host government retreat

The UAE government will hold a brainstorming retreat this week to plot the country’s next 50 years of development.

Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, will lead the event with Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces.

Discussions on Tuesday and Wednesday will focus on how the Emirates will navigate the next half-century, what government will look like and “how to accelerate our development process”, Sheikh Mohammed wrote on Twitter.

Ministers and officials will also focus on how to “improve the business and economic environment in our country to achieve new competitive leaps”, he said.

A video that accompanied the tweet showed footage of the recent space missions including the Mars probe success, humanitarian operations and the pursuit of technology.

“The future needs proactive plans, innovative initiatives and new skills with which we can preserve our leadership and success story, and through which we provide a better life for the new generations in this country,” Sheikh Mohammed said.

The gathering is being held to put forward a series of plans and initiatives to prepare the country’s institutions for the next 50 years.

Government officials will be split into working groups and each presented with anticipated challenges to address with a plan. This must include defined responsibilities and specific goals.

Two committees were set up last year to form plans for the country's future and the Golden Jubilee celebration, and present these to the UAE Cabinet.

The 50-Year Preparedness Plan will focus on six areas: government, society, economy, education, infrastructure and environmental sustainability, and security and justice.

A website was launched to encourage community interaction and seek ideas from the public to plan the UAE anniversary.

On December 2, 2021, the country will be 50 years old.

Throughout this year, decision-makers will put the spotlight on its rapid journey to present day – and the challenges and opportunities the next half-century will bring.

UAE rulers lead Mars celebrations - in pictures

Seven tips from Emirates NBD

1. Never respond to e-mails, calls or messages asking for account, card or internet banking details

2. Never store a card PIN (personal identification number) in your mobile or in your wallet

3. Ensure online shopping websites are secure and verified before providing card details

4. Change passwords periodically as a precautionary measure

5. Never share authentication data such as passwords, card PINs and OTPs (one-time passwords) with third parties

6. Track bank notifications regarding transaction discrepancies

7. Report lost or stolen debit and credit cards immediately

ESSENTIALS

The flights
Fly Etihad or Emirates from the UAE to Moscow from 2,763 return per person return including taxes.
Where to stay
Trips on the Golden Eagle Trans-Siberian cost from US$16,995 (Dh62,414) per person, based on two sharing.

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