At a factory in Abu Dhabi's Khalifa Industrial Zone, cheese products are being made at a brisk pace.
The 20,000-square-metre plant is the first in the UAE to make processed cheese.
It is also the first factory in the country to export processed cheese to countries around the globe.
Launched in November 2019 by Turkish food brand Pinar, the plant has the capacity to produce 30,000 tonnes of processed cheese each year.
Last year, it exported the first "made in UAE" processed cheese products to 17 countries, including the US, Philippines, Pakistan, Thailand and Israel.
Arda Cenk Tokbas, managing director at Hadaf Foods Industries, Pinar’s regional office, said: “All our cheese is prepared using cow’s milk which is locally sourced from farms in the UAE.
"With this facility, we hope to contribute to the country’s goal of becoming one of the most food secure countries in the world.”
He said the company was planning to double the factory’s annual production, to more than 60,000 tonnes, in the next few years.
The production centre is fully automated with more than 50 machines that can process and pack cheese in different forms and sizes. Products include spreadable cream cheese and cheddar cheese in jars, and mozzarella cheese, in shredded form and as mozzarella balls. Some of the ingredients, such as milk proteins and butter, are imported from Europe.
Adnan Peynirci, the factory director at Hadaf Foods Industries, said there were three production lines.
"The first step is to process the cheese and the second is packaging," Mr Peynirci said.
"We use dozens of machines imported from Germany, Turkey and Italy that can work efficiently with minimum human interference."
The factory employs about 70 people who work in production, maintenance, logistics quality assurance, research and supply chain management.
Mr Peynirci said the aim is to turn it into a ‘smart factory’, a completely digitised system that continuously collects and shares data through connected machines, by 2023.
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