UAE leaders have shared their messages of peace and prayer before the anniversary of the Prophet Mohammed’s birth.
The authorities announced last week that there will be a public holiday on Thursday to celebrate the occasion. Work will resume on October 24.
Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, congratulated Muslims on the anniversary of the birth of 'the best of mankind'.
Referring to the Prophet Mohammed as the last of all the messengers, he asked that God's peace be upon him.
“We congratulate the Islamic nation on the birth anniversary of the best of mankind, the forewarner and the [guiding light], the call of Ibrahim and the announcement [from] Jesus (peace upon them) the last of all messengers and God’s mercy to the world.
“Peace be upon our master, beloved and role model.”
Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, also shared his thoughts before the special day.
“On the anniversary of the birth of the Prophet (peace be upon him), we are reminded of his powerful legacy and his lasting message of peace, love, mercy, progress and goodness,” Sheikh Mohamed said.
“May God grant us harmony, security and well-being throughout the world.”
Sheikh Maktoum bin Mohammed, Deputy Prime Minister, Minister of Finance and Deputy Ruler of Dubai, also congratulated Arab and Islamic nations on the anniversary of Prophet Mohammed's birth.
“On the birth anniversary of our Prophet Mohammed, Peace be upon him, the message of our true religion and its call that has promoted the values of tolerance, supporting the weak, establishing justice, spreading peace and bringing good to all humanity, has been revealed to us.”
He asked God to protect the nations.
Prophet Mohammed's birthday is an important and auspicious day for Muslims.
This holiday is marked by observance rather than celebration, with festivities kept to a minimum.
It is celebrated with religious lectures and recitals of verses from the Quran. Mosques across the UAE light up to mark this important day.
Both the public and private sector workers across the UAE have been granted a day off on Thursday to celebrate the Prophet's birthday.
Work will resume on Sunday, October 24.
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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
