The UAE has been named the country with the lowest level of public sector corruption in the Middle East and North Africa.
The Emirates was also ranked 23rd globally in the newly released Corruption Perception Index 2024 by Transparency International, an association dedicated to exposing corruption worldwide.
The UAE was particularly praised for its performance in the digitalisation of services.
“The UAE is building on previous strategic programmes with the 'UAE Digital Government Strategy 2025', designed to support cross-sectoral embedding of digital aspects into overall government strategies,” read a statement attributed to Manuel Pirino and Kinda Hattar, regional advisers for the Middle East and North Africa, Transparency International.
“The strategy has inclusiveness and user satisfaction among its measures of success, and aims to bridge the digital divide to help reduce inequality among citizens.”
The UAE scored 68 out of 100, with the next closest in the region being Israel with 64. The worst performing nation in the region was Syria with 12, with Yemen and Libya not far behind on 13.
“The state of anti-corruption efforts in the Middle East and North Africa region remains bleak,” read the statement.
“The region’s stagnation stems mostly from the near-absolute control of its political leaders, who benefit from the wealth they direct toward themselves, while clamping down on any dissent to maintain their power, allowing conflict to rage across a number of states.”
Not all bad news
While the report painted a challenging picture, there were some signs of encouragement.
“There are also positive trends, with coalition-building between like-minded actors becoming more frequent, in a transnational effort to counter corrupt forces,” read the statement.
“Unforeseen opportunities are also emerging. After the downfall of the Assad regime in Syria, there is a loud demand that the country works towards real democracy, that is truly inclusive and transparent.
“An encouraging development is the effort by countries within the Gulf Co-operation Council to invest in technological solutions in public administration – or 'e-governance'. This shift improves transparency and can help reduce corruption by removing middlemen and facilitators.”
Denmark topped the global rankings with a score of 90, followed by Finland, Singapore, New Zealand and Luxembourg.
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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The bio
Studied up to grade 12 in Vatanappally, a village in India’s southern Thrissur district
Was a middle distance state athletics champion in school
Enjoys driving to Fujairah and Ras Al Khaimah with family
His dream is to continue working as a social worker and help people
Has seven diaries in which he has jotted down notes about his work and money he earned
Keeps the diaries in his car to remember his journey in the Emirates
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
