The UAE has ranked as the best performing country in the region in tackling public sector corruption. Khushnum Bhandari / The National
The UAE has ranked as the best performing country in the region in tackling public sector corruption. Khushnum Bhandari / The National
The UAE has ranked as the best performing country in the region in tackling public sector corruption. Khushnum Bhandari / The National
The UAE has ranked as the best performing country in the region in tackling public sector corruption. Khushnum Bhandari / The National

UAE has lowest level of public sector corruption in region, report reveals


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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

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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.

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Updated: February 12, 2025, 5:12 PM