Mubadala to continue focus on UAE's knowledge-based economy

In the more than two decades since Mubadala Investment Company was established, Abu Dhabi’s strategic investment arm has helped to advance the UAE's agenda for knowledge creation, innovation and developing greater opportunities for future generations, Sheikh Mansour bin Zayed, Deputy Prime Minister, Minister of the Presidential Court and chairman of Mubadala said on Sunday.

“Since then, Mubadala’s commitment to that vision and its ability to further respond and support evolving national priorities has contributed to shaping the UAE and its place in the world today,” Sheikh Mansour was quoted by state news agency Wam as saying.

The company's partnership philosophy, its agility and long-term responsible investment approach have created a vast array of opportunities for Emiratis that did not exist two decades ago, he added.

On Friday, Mubadala said it invested Dh107 billion ($29.13 billion) in 2022 across a range of sectors and received proceeds of Dh106 billion ($29 billion) by monetising assets at strong valuations.

The investments were made in sectors including life sciences, renewable energy and digital infrastructure, in line with the company’s strategy to invest in industries shaping the future, Mubadala said on Friday.

Assets under management across the group stood at Dh1.01 trillion ($276 billion).

Growth was supported by a strong performance in real estate, infrastructure and alternative investments, including private equity and private credit, Mubadala said.

The company did not, however, disclose its total comprehensive income for 2022, but that figure stood at Dh122 billion in 2021.

“Despite global headwinds affecting financial markets and investor sentiment, we outperformed benchmarks, staying the course with our long-term strategy of investing in key markets and sectors,” Khaldoon Al Mubarak, Mubadala’s managing director and group chief executive, said on Friday.

Beyond sustainable economic growth and associated financial returns, Mubadala's impact is evidenced by domestic world-class healthcare and education infrastructure; a diverse, forward-looking economic base; and global investment leadership across sectors shaping a sustainable and positive future, Sheikh Mansour said.

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“Importantly, the economic diversification Mubadala has enabled has also had a fundamental impact on more than 200 nationalities in our region's most dynamic and competitive economy.”

Mubadala's capabilities and standing as one of the world's largest responsible investors is essential as the UAE embarks on new and highly ambitious programmes under the President, Sheikh Mohamed, he added.

“As always, as we continue to advance the UAE's knowledge-based economy, and we will do so in a way that pioneers and contributes to solutions for critical global challenges in sectors such as health innovation, the climate emergency and future energy sources,” Sheikh Mansour said.

Established in 2002, Mubadala invests on behalf of the Abu Dhabi government and is at the heart of the emirate’s efforts to diversify its revenue base and generate income from sources other than oil.

The sovereign fund’s investment portfolio spans six continents. It has interests in multiple sectors and asset classes, including aerospace, information and communications technology, semiconductors, metals and mining, renewable energy, oil and gas and petrochemicals.

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Education: Bachelor’s degree in business management and marketing at American University of Sharjah

A self-confessed foodie, she enjoys trying out new cuisines, her current favourite is the poke superfood bowls

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Favourite holiday destination: Italy

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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

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