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The UAE Ministry of Finance issued Ministerial Decision No. 197 of 2026, removing mandatory transaction pre-approvals and offering a two-year transitional exemption for internal cross-entity transactions under the Electronic Invoicing System. Concurrently, Federal Tax Authority Decision No. 17 of 2026 clarifies corporate tax and VAT rules for deductible employee expenses including transport, accommodation, and mobile devices.
Sheikh Saud bin Saqr Al Qasimi inaugurated Ras Al Khaimah's first business consultancy in Guangzhou on October 21, 2026. The consultancy serves as a permanent base to connect the emirate with Chinese businesses. The opening follows a cooperation agreement signed with Guangdong Province in November 2024.
Mohammad Abdulrahman Alhawi, Undersecretary of the UAE Ministry of Investment, stated that no planned foreign direct investment projects have been cancelled in 2026 despite regional geopolitical tensions. The country remains committed to achieving its target of $65 billion in annual FDI inflows by 2031, supported by domestic infrastructure development and investor partnerships. HSBC estimates that the UAE's planned infrastructure project pipeline exceeds $190 billion in financing requirements.
The UAE Ministry of Finance has issued Ministerial Decision No. 197 of 2026, granting compliance relief under the federal electronic invoicing system. Transactions within the same VAT tax group receive a 24-month exclusion starting January 1, 2027, and physical domestic storage requirements for archives have been lifted. The rule requiring companies to notify the tax authority of system failures within two days has also been eliminated.
UAE Ministry of Finance
United Arab Emirates
Effective January 1, 2027
Final rule
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