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.
Founders: Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain.
Based: Riyadh
Offices: UAE, Vietnam and Germany
Founded: September, 2020
Number of employees: 70
Sector: FinTech, online payment solutions
Funding to date: $116m in two funding rounds
Investors: Checkout.com, Impact46, Vision Ventures, Wealth Well, Seedra, Khwarizmi, Hala Ventures, Nama Ventures and family offices
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
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THE BIO
Favourite car: Koenigsegg Agera RS or Renault Trezor concept car.
Favourite book: I Am Pilgrim by Terry Hayes or Red Notice by Bill Browder.
Biggest inspiration: My husband Nik. He really got me through a lot with his positivity.
Favourite holiday destination: Being at home in Australia, as I travel all over the world for work. It’s great to just hang out with my husband and family.
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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
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