DUBAI // More coordination between groups in the food industry is needed to ensure consumers' needs are met, experts says.
"There is a gap between supply and demand, both in the UAE and globally, because the relevant bodies don't work together enough," said Virgilio Martinez Veliz, the owner of Central Restaurante in Lima.
"Cooks, restaurant owners, farmers, hotel owners and food authorities should be able to communicate to ensure the consumer's satisfaction," he said on the sidelines of the Gulfood conference in Dubai.
But Mr Veliz said that could be hard to achieve in the UAE, which imports food from a large number of countries.
"There is a huge demand for different ingredients in the UAE because the country imports 85 per cent of its food, so it's bound to be complicated," he said.
The dependance on imported goods makes the UAE vulnerable to supply problems, either environmental or political. And when these occur, shoppers suffer.
In 2010, supplies from Pakistan suffered because of flooding, while shipments from the US, Europe, Canada and Russia were hit by the volcanic eruption in Iceland.
"It happened to me a few times when I'd go to the supermarket and not find my usual 1kg bag of Thai sticky rice," said Isra Chai, 42, a mother of three who shops at Choithrams supermarkets in Dubai.
"It can be frustrating sometimes not to have your usual food available, but this was mainly when the floods hit Thailand pretty strong last October."
Figures from the Ministry of Foreign Trade showed the UAE imported 6 per cent of its rice from Thailand in 2009. But the problem can also affect locally sourced products.
"Buying local milk from supermarkets in Dubai can be tricky if you don't get there early enough," said the Dubai resident Gary Channing.
"I get a litre of Al Rawabi milk every few days because it expires quickly, but if I get to the supermarket at the end of the day I rarely find the milk I want, if any at all."
The range of food imported has also led to shoppers becoming more health-conscious as they become more aware of a wider range of products, said Mr Veliz.
"Consumers are adopting a much healthier lifestyle in the UAE compared to how they used to be because they are growing more aware, and that's very important to reduce obesity and diabetes in the country," he said.
cmalek@thenational.ae
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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
Asia Cup Qualifier
Final
UAE v Hong Kong
Live on OSN Cricket HD. Coverage starts at 5.30am
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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