Turkey's President Recep Tayyip Erdogan received Saudi Foreign Minister Prince Faisal bin Farhan for talks in Istanbul on Sunday.
Prince Faisal is in Turkey on an official visit aimed at improving bilateral relations.
He was received by Mr Erdogan at the Dolmabahce Palace in Istanbul.
They held talks about Saudi-Turkish relations and regional and international developments, Saudi Press Agency reported.
Earlier in the day, Prince Faisal met Turkish Foreign Minister Hakan Fidan.
They signed an amended protocol for the minutes establishing the Saudi-Turkish Co-ordination Council, SPA said.
The council was established in 2016 with the goal of strengthening relations between the two countries.
Relations had been strained for years following Turkey's support for the Muslim Brotherhood during the unrest and protests across the Middle East after 2011.
Ankara and Riyadh also took different positions in dealing with Syrian President Bashar Al Assad during the Syrian civil war that broke out that year.
However, relations have since improved, with Mr Erdogan visiting Saudi Arabia in 2022. The same year, Saudi Arabia's Crown Prince Mohammed bin Salman returned the visit to Turkey.
Mr Erdogan returned to Saudi Arabia as part of a three-day tour of the Gulf last year. The trip was aimed at strengthening Turkey's ties with the Gulf countries amid Turkey's economic crisis.
Turkey is seeking financial support as it struggles with inflation of more than 70 per cent.
Earlier this year, Turkey's Trade Minister Omer Bolat said bilateral economic relations had made “tremendous” progress.
“God willing, 2024 will take its place as a golden year in the economic relations between Türkiye and Saudi Arabia,” Mr Bolat was quoted by Turkey's Daily Sabah as saying during his visit in March.
Ankara also appears to be open to improving relations with Damascus, after Arab countries including Saudi Arabia restored ties. Mr Erdogan recently made overtures to Syria's President amid signs of warming relations.
“We have now come to such a point that if Bashar Al Assad takes a step towards improving relations with Turkey, we will show that approach towards him,” Mr Erdogan said last week.
The potential rapprochement comes after Syria was readmitted to the Arab League, from which it was suspended following the outbreak of the Syrian civil war.
Mr Assad attended the Arab League summit in Saudi Arabia last year, followed by this year's summit in Bahrain.
Ankara and Riyadh have also called for a ceasefire in the war in Gaza and criticised Israel over its conduct in the war.
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
