UAE welcomes 2023 with record-breaking fireworks and laser shows

Record-breaking fireworks and laser shows lit up the night skies across the UAE to welcome the New Year.

Burj Khalifa in Downtown Dubai became the showstopper, as the world’s tallest tower shone brightly in a dazzling array of colours and lights on the stroke of midnight.

Hundreds of thousands braved the traffic to claim the best spot in Downtown at Dubai Mall as early as 4pm as vantage points for The Fountain and Burj Khalifa turned into a sea of people wearing glitter and glam for the occasion.

Pyrotechnic displays were set up across the emirates, including from Atlantis The Palm, La Mer, Bluewaters Island and Burj Al Arab.

As the first new year’s celebrations without any coronavirus restrictions in place, and with perfect weather playing out in favour of outdoor fun, families turned out in huge numbers to join the festivities.

Yas Island in Abu Dhabi offered dual fun for onlookers with fireworks displays at 9pm and at midnight, while Al Maryah Island and the Corniche also had fireworks at midnight.

Global Village wooed one of the biggest crowds with seven sets of fireworks coinciding with seven time zones across the world.

In Al Wathba, a 40-minute drive from Abu Dhabi, a 40-minute fireworks display and show featuring 3,000 drones broke a record in volume, duration and form.

Ras Al Khaimah hosted another record-breaking fireworks show featuring pyro drones, nano lights, colours and shapes along the 4.7km long waterfront between Al Marjan Island and Al Hamra Village.

Across the UAE, beach clubs and bars, restaurants and food chains, public parks and shopping malls were packed as people lapped up pricey as well as pocket-friendly dining and entertainment options to ring in the New Year.

Hope for a better year

Vinay Jain and his wife Rupali Jain, with Bala Jain and Ritvik. Anjana Sankar / The National

From having a safe and healthy year to hopes of finding new jobs and losing weight topped some of the New Year wishes of residents.

Indian couple Vinay Jain and his wife Rupali Jain, both IT professionals in Abu Dhabi, who were at Yas Bay to ring-in the New Year, hoped for a safe and prosperous 2023.

“I want to learn Arabic this year,” said Mr Jain.

Rupali said she is aiming to lose weight in 2023. “I hope it won’t remain just a wish,” she said.

Her mother Bala Jain was visiting Abu Dhabi to celebrate the New Year with her daughter and eight-year old grandson, Ritvik.

“I want everyone to enjoy peace and happiness this year. We had a tough few years before of Covid,” said Ms Jain who lives in Delhi, India.

Joao Troncao and Marta Lourenco from Portugal. Anjana Sankar / The National

Joao Troncao and Marta Lourenco from Portugal moved to the UAE two weeks ago wants to make the country their home this year.

“We hardly know this place. Everything feels new here. We want to make this our home in 2023,” said Mr Troncao, who works as a creative director.

Kartik Raina and Ishaan Kumar. Anjana Sankar / The National

For Kartik Raina, 19, who is pursuing an economics degree at the University of Bath, celebrating the New Year with parents in Abu Dhabi was special.

“It is nice to hang out with family and friends,” he said.

“My wish for the New Year is to get an investment banking internship.”

His friend Ishaan Kumar, 17, a Grade 12 student of the Dubai International Academy, said fitness and admission to a leading college are his New Year wishes.

“2022 was a good year for me. I want to hit the gym more often. Also, I hope I will get into a good university in India.”

Eldeniz Kurean with his wife Yaroslava and daughter Sophia at the Yas Bay to watch the 9pm fireworks on the New Year eve in Abu Dhabi. Pawan Singh / The National

Turkish couple Eldeniz and Yaroslava Kurean, who have a 3-year old daughter called Sophie, wished for peace and prosperity in 2023.

“We wanted to enjoy this weather and see the fireworks. Abu Dhabi is a great place for family and we want to just say happy and healthy this year,” said Mr Kurean, an IT professional.

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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