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Panel on corporate tax hears of opportunities and red flags

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Leading auditing and taxation firm Corporate Group sought to allay concerns over the looming regime of corporate tax in the UAE while highlighting the fact that a significant number of companies face the risk of fines in the absence of timely action.

A packed hall of entrepreneurs, CFOs and accounting heads from big companies attended a panel discussion organised by Corporate Group at the Radisson Blu Waterfront hotel in Business Bay on Tuesday. The audience heard from experts in the VAT, legal and Federal Tax Authority (FTA) domains on how time is running out for businesses to comply with the registration before the June 1 deadline.

Mohamed Osman

“It is understandable that people have all sorts of questions especially when the framework of the law is still being fine-tuned by the government,” said Mohamed Osman, chairman at Corporate Group, who also specialise in audit and VAT services. “While it is true that not all are eligible or bound to pay the corporate tax rate of 9 percent, everyone has to register if they meet certain criteria.”

The UAE’s impending implementation of a 9% corporate tax is a drastic step in the traditionally tax-free country and hence vexing for many. However, some have welcomed the move even from a neutral, larger perspective.

David McCormack, Managing Director of Asset Capital Solutions who has managed more than $200 million of real estate investment for two private equity groups, said: “Countries like the UK or Australia, where I hail from, have high rates of corporate tax while it used to be zero here. However, any dealings that we did, irrespective of the merit, attracted misconceptions by many countries that we were trying to cheat on tax money. Now, that is getting out of the equation.”

Mohamed Osman addresses the panel at a Dubai hotel on Wednesday. Supplied

Abdul Salim Seyudu, technical manager at an insurance company, said: “It was an informative session on a very relevant topic. With startups and the likes from all parts of the world coming to Dubai, everyone is looking at it with their own lens and needs. I remember VAT has now been here for five years and people are still searching for answers. Similarly for corporate tax, every piece of information is helpful at events like this.”

Questions arose from the packed hall with attendees seeking clarity on how the pending changes impacts their respective organisations or businesses. Many stayed behind much after the session to address more queries to the experts. There was also demand to have more such conferences in the near future.

“Education by way of seminars and such discussions is needed,” said Luca Angiolilli, the CG Tax Director with more than 20 years of experience in various countries. “Before starting the meet, seeing the enthusiastic response, we decided internally to have more such events.”

The presence of 45 free zones and their unique position from a taxation point of view in the economic framework of the UAE has made the introduction of CT more challenging. “The UAE has 45 free zones with some more coming up and in areas criss-crossing each other,” McCormack said.

“Many of the companies have registered where they shouldn’t have. Some free zone companies have slipped into the guise of another activity, which may have gone off the radar until now. And many don’t even have the option to open bank accounts and that is a fundamentally big problem in the current development of implementing corporate tax.”

All panelists agreed unequivocally that the initiative by Corporate Group has set the conversation going in the right direction. Yet, the lack of awareness and lackadaisical approach among business houses, SME and individuals must end soon with barely a couple of months left.

Announcements

UAE Cabinet approves record Dh92.4 billion budget, the largest in the nation’s history

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The UAE Cabinet, chaired by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has approved the federal budget for 2026, estimated at Dhs92.4 billion, the largest in the nation’s history.

The budget is projected to generate revenues of Dh92.4 billion with balanced expenditure, reflecting the UAE’s continued fiscal stability and strategic investment in growth.

Sheikh Mohammed said, “This is the highest federal budget since the Union was established. It is a budget that strengthens the federal system and demonstrates our ongoing dedication to balanced development.”

The Cabinet also approved an annual programme to support and enhance the federal financial centre, funded by allocations from the federal budget, aimed at ensuring the financial sustainability of federal institutions.

Economic Growth and Foreign Investment

Sheikh Mohammed highlighted strong national economic indicators, announcing that the UAE’s outward foreign investment balance has reached Dh1.5 trillion, a 9 per cent increase compared to last year. “We are the leading Arab economy and one of the top 20 international economies exporting FDI,” he said on the X platform.

The Cabinet further approved 35 international agreements and memorandums of understanding covering areas of economic and strategic cooperation.

Sheikh Mohammed noted the success of the UAE’s export development policy, with exports growing from Dh470 billion in 2019 to Dh950 billion in 2024, an increase of 103 per cent.

“Our budgets are balanced, our investments are growing, our foreign trade is expanding, and our economy is thriving under the leadership of my brother, His Highness Sheikh Mohamed Bin Zayed Al Nahyan. Our country continues to move from summit to summit with prosperity and stability for its people and residents,” Sheikh Mohammed said.

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UAE launches first-of-its-kind investment opportunity for everyone

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The UAE Ministry of Finance has unveiled ‘Retail Sukuk’, a groundbreaking new initiative that allows individuals, both citizens and residents, to invest directly in Shariah-compliant, government-backed Treasury Sukuk (T-Sukuk).

For the first time, everyday investors can now access these secure, sovereign-backed instruments through fractionalised digital investment platforms operated by participating UAE banks, with the minimum investment starting at just Dh4,000.

Empowering the community through smart, inclusive finance

Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, said the ‘Retail Sukuk’ marks a new chapter in the nation’s financial journey.

“This initiative opens new horizons for citizens and residents to contribute to shaping the future through secure, government-backed investment instruments,” he said.

It transforms investment in government bonds into an accessible digital experience, empowering everyone to participate in long-term savings and national growth.”

What is T-Sukuk

The Ministry confirmed that the T-Sukuk are fully Shariah-compliant, previously available only to institutional investors. Now open to all UAE residents, they provide a secure and stable savings tool backed by the government, promoting financial literacy and responsible saving habits.

Linked to dirham-denominated, market-traded T-Sukuk, the Retail Sukuk give individuals access to the same sovereign-grade assets held by large investors, all via user-friendly digital platforms.

The Ministry will announce the first participating bank on November 3, with more details on registration and investment channels to follow.

A new era of financial empowerment

By bridging technology, inclusion, and Islamic finance, the Retail Sukuk initiative represents a major milestone in democratising investment opportunities, enabling every resident to participate in the UAE’s economic growth story safely and transparently.


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Dubai is giving hotel investors a full rebate, here’s why it’s a game-changer

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Dubai is offering a major boost to investors eyeing the city’s next wave of hospitality hotspots. The Dubai Department of Economy and Tourism (DET) has launched a new incentive programme designed to encourage hotel development in future high-growth areas, including Dubai South, Palm Jebel Ali, Dubai Parks, and Dubai Islands.

The initiative follows the issuance of Executive Council Resolution No. (68) of 2025 by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence, and Chairman of the Executive Council of Dubai.

100% rebate

Under the programme, new hotels, resorts, and hotel apartments that meet DET’s criteria will be reimbursed 100% of the Dubai Municipality fee on room sales and the Tourism Dirham fee for two years after opening, a move aimed at accelerating investment and expanding Dubai’s hospitality footprint.

“The launch of this hotel incentive programme marks an important new phase in the development of Dubai’s hospitality ecosystem,” said Issam Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing (part of DET). 

“It supports our goal of making Dubai the best city to visit, live, work and invest in.”

Strengthening a Record-Breaking Hospitality Sector

The announcement follows an impressive run for Dubai’s tourism sector. In the first eight months of 2025, the city welcomed 12.54 million international overnight visitors, marking a 5% year-on-year increase, and achieved 29.03 million occupied room nights. Hotel occupancy stood at 78.5%, ranking among the highest globally and two percentage points higher than the same period in 2024.

Streamlined Application and Regulatory Oversight

The DET will manage all investor applications and ensure compliance with Decree No. (17) of 2013, which governs the licensing and classification of hotel establishments in Dubai. Eligible projects must commence operations within three years of application to qualify for the incentive.

Investors can contact the Dubai Department of Economy and Tourism at +971 600 55 55 59 for application details.

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