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Policy & Legal Updates
Source: Federal Tax Authority

UAE Federal Tax Authority Issues Decision on Input Tax Recovery for Employee Expenses

The UAE Federal Tax Authority published Decision No. 17 of 2026 setting conditions for recovering input tax on employee expenses. Entities may recover VAT on goods or services provided to employees under contractual obligations or documented policies. The guidance requires formal documentation and approval mechanisms ahead of VAT Executive Regulation amendments taking effect October 1, 2026.

China–UAE News
Source: Briefs Finance

Luckin Considers Gulf Expansion After Abu Dhabi Fund Mubadala Joins $1 Billion Deal

Chinese coffee chain Luckin Coffee is assessing an expansion into Gulf countries following an investment by Abu Dhabi's Mubadala Investment Company. Mubadala became a direct shareholder after partnering with Luckin's controlling shareholder Centurium Capital on a $1 billion deal. Luckin executives highlighted the Gulf region's repeat consumption and rising demand for health-oriented beverages.

China–UAE News
Source: Seoul Economic Daily

China Direct Investment in UAE Reaches $2.6 Billion as Global Outflows Top $200B

China's annual outbound direct investment reached $213.58 billion, surpassing $200 billion for the first time with an 11.1 percent year-on-year increase. Outbound flows to the Middle East more than doubled, with the United Arab Emirates leading the region by attracting $2.6 billion. The UAE figure represents more than triple the volume of Chinese direct investment received in the preceding year.

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