The UAE has been selected to join 49 other countries to be part of the Hiroshima AI Process Friends Group, Omar Al Olama, Minister of State for AI, Digital Economy and Remote Work Applications, has said.
"In this momentous stride towards progress, the UAE shines as a symbol of innovation and collaboration. Embracing the boundless potential of technology and innovation," he wrote on X, formerly Twitter.
"The UAE charts a path towards a future defined by excellence, advancement, and leadership on the world stage, fuelled by a vision that knows no bounds," he added, also noting that the UAE was the only Arab country and the only "regional country" to join the AI safety and security group.
Other countries in the group include the US, UK, Canada, India, Japan, South Korea and Spain.
Created last May during the 49th G7 Summit in Japan, the Hiroshima AI Process initiative was announced with hopes of providing a comprehensive framework to responsibly pursue AI advancements, while at the same time curtailing the potential problems posed by the fast-evolving technology.
According to a recently posted code of conduct provided by the Hiroshima AI Process Friends Group, organisations in the field of AI are encouraged to follow various actions throughout the course of AI development.
"In designing and implementing testing measures, organisations commit to devote attention to the following risks as appropriate," the code of conduct reads.
"Chemical, biological, radiological and nuclear risks, such as the ways in which advanced AI systems can lower barriers to entry, including for non-state actors, for weapons development, design acquisition, or use ... Risks from [AI] models of making copies of themselves or 'self-replicating' or training other models."
The code of conduct, according to the group, will be updated periodically amid ongoing meetings and consultations with member countries and other organisations.
The international framework is one of several efforts under way on a global scale that seek to create standards and shed light on the potential dangers of AI.
In October, Britain’s Prime Minister Rishi Sunak hosted an AI Summit attended by various world leaders and experts, resulting in the Bletchley Declaration, which endorsed proposals for tackling potentially catastrophic harm, either deliberate or unintentional, from AI technology.
The UAE has in recent years sought to be a leader in AI development and regulatory frameworks.
In 2019, well before AI momentum began to build, the UAE opened the Mohamed bin Zayed University of Artificial Intelligence, one of the first higher education institutions in the world to have a singular focus on AI.
Last year, several months after OpenAI's ChatGPT became the centre of the AI universe, the company's chief executive Sam Altman visited the UAE and spoke of his optimism that the Middle East and North Africa could play a central role in developing safe AI, while also noting the UAE “had been talking about AI since before it was cool”.
Mr Altman also spoke to Mr Al Olama during the 2024 World Governments Summit in Dubai, where he said the UAE would be "well-positioned to be a leader" in the discussions around AI safety measures and auditing.
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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
