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Issue
02 / 2026
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UAE Business Newsletter · Issue 02 / 2026 · Q2 2026
The Business Owner's Briefing
Financial, operational, regulatory & investment updates that matter to business owners
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September 30 Corporate Tax deadline: don't leave this to the last week
Businesses with a financial year ending December 31, 2025 must file and pay Corporate Tax by September 30, 2026. Even with zero tax owed, you must still file. Under Cabinet Decision No. 75 of 2023, late filing carries AED 500 per month for the first 12 months, rising to AED 1,000 per month from month 13. Separately, any unpaid Corporate Tax accrues a penalty at 14% per annum from the day after the due date. What you need before filing: IFRS-compliant financial statements, VAT-CT reconciliation, expense classification review. Accounting firms are at peak capacity, so get your accounts finalised immediately.
| ▶ If your accounts are not yet finalised, contact your accountant now. Do not leave this to the last week of September. |
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— E-invoicing: phased deadlines by business size
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Jul 1, 2026
Pilot and voluntary onboarding begin
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Oct 30, 2026
ASP appointment (revenue ≥ AED 50M)
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Jan 1, 2027
Mandatory go-live (revenue ≥ AED 50M)
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Jul 1, 2027
Mandatory go-live (SMEs < AED 50M)
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Applies to B2B and B2G transactions only. PDF invoices do not qualify as eInvoices under the new system; in-scope eInvoices must be exchanged in the required structured format through an Accredited Service Provider. SME ASP appointment deadline: March 31, 2027. Penalty for missing: AED 5,000/month. The AED 50M threshold is calculated on total revenue including B2C, not just B2B.
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Small Business Relief extended to December 31, 2029 (Ministerial Decision No. 131 of 2026)
The UAE Ministry of Finance issued Ministerial Decision No. 131 of 2026 on 29 July 2026, extending Small Business Relief (SBR) to cover qualifying tax periods ending on or before 31 December 2029. Eligible businesses with annual revenue not exceeding AED 3 million may elect Small Business Relief for those qualifying tax periods. All existing eligibility conditions remain unchanged: businesses must still register for Corporate Tax, file returns on time, and maintain documentation to support the SBR election. The extension does not relax any compliance obligations; it simply extends the window.
| ▶ If you were planning your post-SBR transition for 2027, revisit that plan. Confirm your eligibility and ensure you elect SBR correctly in your CT return filing. |
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Salary must be paid on the 1st of every month; the 15-day grace period is gone
Under Ministerial Resolution No. 340 of 2026 (effective June 1, 2026), all private sector employers must pay salaries through WPS by the 1st of every month for the prior month's work. The old 15-day grace period and contract-based flexibility are completely removed. The WPS compliance threshold has increased from 80% to 85%, and any shortfall from full compliance should relate only to lawful and properly documented deductions. Enforcement starts Day 2: warnings → work permit suspension → fines → automatic labour dispute registration → travel bans. New employees are in WPS scope from day one.
| ▶ Restructure your payroll cycle immediately. If payroll currently runs on the 5th or 10th, you need to move it. Ask your bank about payroll credit lines if cash flow is tight at month-end. |
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Emirati minimum salary raised to AED 6,000; compliance deadline was June 30
MoHRE raised the mandatory minimum salary for Emiratis in the private sector from AED 5,000 to AED 6,000/month (basic + fixed allowances). Applies to all new, renewed, or amended work permits from January 1, 2026; existing contracts had a grace period to June 30, 2026, which has now passed. From July 1, 2026: Emiratis earning below AED 6,000 do not count toward Emiratisation quotas, and companies face new work permit suspension until corrected.
| ▶ Audit your Emirati payroll records immediately. If any Emirati employee earns under AED 6,000, amend their contract now or lose your quota credit and face permit freezes. |
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| Accounting & financial reporting |
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Filing your CT return this September? Your financial statements must meet IFRS standards
As the September 30 deadline approaches, this is a reminder that UAE Corporate Tax Law requires financial statements to be prepared under the applicable accounting standard before you can file. Under Ministerial Decision No. 114 of 2023, the standard depends on your revenue:
Revenue above AED 50 million → Full IFRS required. Audited statements also mandatory (Ministerial Decision No. 84 of 2025).
Revenue at or below AED 50 million → IFRS for SMEs may be applied. This is a simplified, internationally recognised framework published by the IASB, with the same accounting principles as full IFRS but with reduced disclosure requirements, designed for smaller businesses.
Revenue up to AED 3 million → Cash basis accounting may be elected under defined conditions.
Your taxable income is calculated starting from your financial statements, so inaccurate or non-compliant accounts directly affect your CT return. All records must be retained for a minimum of 7 years.
| ▶ Before filing, confirm with your accountant that your 2025 financial statements are prepared under the correct standard for your revenue level. |
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UAE Golden Residency: investor and entrepreneur routes for business owners
The UAE Golden Residency offers 5- or 10-year residency depending on the qualifying category. Relevant routes for business owners include investment and entrepreneurship, subject to applicable eligibility criteria. Eligibility conditions, minimum thresholds, and qualifying criteria are defined by federal regulations and the relevant emirate authority. We recommend verifying your specific eligibility directly through the ICP portal (icp.gov.ae) or the relevant authority rather than relying on third-party summaries.
| ▶ If you think you may qualify, check current criteria at icp.gov.ae. |
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| Economy & investment opportunities |
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AED 2.445 billion in procurement opportunities available to Emirati SMEs; National Champions Programme active
The National Forum for SMEs – Government Procurement 2026 opened AED 2.445 billion in procurement opportunities from federal entities, local entities and national companies, exclusively available to Emirati-owned SMEs. Separately, the Emirates Growth Fund's National Champions Programme supports high-potential UAE-based manufacturing SMEs in priority sectors through growth capital, market enablement and strategic support.
| ▶ Emirati-owned business? Register at the government procurement portal and explore egf.gov.ae for the National Champions Programme. |
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| Markets & investment watch: Q2 2026 |
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| UAE equity markets strengthened during Q2. The Dubai Financial Market gained 9.59% during the quarter, making it the third-best-performing Arab stock market, according to the Arab Monetary Fund's Q2 2026 Capital Markets Bulletin. |
DFM: Dubai
+9.59%
Q2 2026 gain. 3rd best-performing Arab stock market per AMF Q2 2026 Capital Markets Bulletin. | | ADX: Abu Dhabi (H1 2026)
AED 2.8T
Market cap at end of June. H1 trading value: AED 171 billion. Institutional investors: 78% of trading value. International investors: approx. 48%. |
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Mashreq
+28%
Q2 profit before tax growth YoY: Banking | | Aldar Properties
+17%
Q2 net profit YoY to AED 2.6 billion: Real Estate | | du (EITC)
+9.8%
Q2 net profit YoY to AED 798 million: Telecoms |
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Oil prices experienced notable fluctuations during Q2, moving from above USD 110/bbl in April to around USD 75/bbl by late June, driven by shifting global supply and demand dynamics. Business owners with exposure to commodity-linked costs or revenues should factor such price movements into their financial planning and scenario assessments.
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Owner's view
Q2 reflected mixed signals across UAE markets, with positive momentum in equity performance and selected corporate results, alongside continued volatility in commodity prices and an uncertain global backdrop. Business owners and investors should approach opportunities with careful assessment of financial strength, sector fundamentals, and risk exposure, keeping longer-term objectives in view rather than reacting to short-term market movements.
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| AI tools now change weekly. This short section tracks the releases and programmes that actually matter to an owner's office: what launched, who it is for, and whether it is worth your time. Selected and checked by Yemnak. |
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Your next customer could be an AI agent
Visa, Mastercard and Ant International are developing common standards to identify and verify AI agents making purchases on behalf of users. This matters now: if your products, pricing and purchasing journey are not readable by AI systems, not only by human customers, you risk being invisible to an emerging category of buyer. Business owners with e-commerce or digital sales channels should factor this into how they present their offerings online. | | OpenAI releases GPT-6 Astra
The new model is built for long, multi-step work: drafting documents, building spreadsheets and presentations from a template, then adjusting when requirements change. Unlike earlier models that handle single tasks, GPT-6 Astra is designed to hold context across a full workflow. Rolling out gradually. Worth watching if your team already uses AI tools for document-heavy or reporting tasks. |
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Abu Dhabi launches six K2 Horizon AI models
The UAE is positioning itself as an AI builder, not only an investor. The K2 Horizon release spans compact on-device models to a 375B-parameter enterprise model, with weights, code, training data and methodologies made publicly available. For business owners, the practical implication is that locally built, locally governed AI infrastructure is developing, which matters for data residency, regulatory alignment and long-term cost as AI adoption grows in the region. | | |
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| Want to know if a specific AI tool fits your business? Contact us with the tool name and we will give you a straight answer in the next issue. |
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| 4 actions for business owners now |
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CT deadline is September 30: act today Accounts not finalised = file late = AED 500/month penalty. Contact your accountant now. |
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Ensure IFRS-compliant financials before Sep 30 CT returns must be based on IFRS or IFRS for SMEs compliant statements. Get your accounts in order well ahead of the deadline. |
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Fix WPS payroll to the 1st New rule: salary on the 1st of every month, no grace period. Day 2 = enforcement. Restructure payroll cycle now. |
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Check Emirati salaries are ≥ AED 6,000 Below AED 6,000 = employee excluded from Emiratisation quota + work permit freeze. Audit contracts now. |
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Your Outsourced Owner's Office
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Disclaimer
For general informational purposes only. Does not constitute legal, financial, tax, or professional advice. Information may change after publication. Always seek advice from a qualified professional relevant to your specific circumstances. Yemnak accepts no liability for loss or damage arising from reliance on this material.
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UAE · Q2 2026
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