Emirates Global Aluminium, the UAE’s largest industrial company outside the oil and gas sector, expects to be “competitive” in the second half of the year and said the global energy transition will boost demand for the metal in the long term.
The demand for aluminium, widely used to build solar panels and wind turbines, is projected to grow by 46 million tonnes globally by 2040, Zouhir Regragui, the chief financial officer of EGA, told The National.
“Although the markets are lower than the record highs from last year, we believe in the future of aluminium. The demand for aluminium will increase and, in particular, the role of recycled aluminium will grow,” Mr Regragui said.
“We are very well placed to capitalise on these opportunities for a number of reasons.”
EGA reported a profit of Dh2 billion ($544 million) for the first half of 2023 on revenue of Dh14.8 billion.
Prices of commodities, including aluminium, rose sharply in 2021. The momentum continued last year, exacerbated by Russia's military offensive in Ukraine, with aluminium hitting a decade-high.
However, aluminium prices on the London Metal Exchange have fallen about 17 per cent since reaching a peak of $2,650 a tonne in January this year, mostly due to economic weakness in Europe and the US, as well as a property sector slump in China.
EGA’s average realised price for the half-year period stood at $2,359 a tonne.
The company reported adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of Dh4.2 billion.
EGA’s sales of cast metal increased to 1.32 million tonnes, up from 1.31 million tonnes in the first half of 2022.
Bauxite exports from EGA's Guinea operations rose by about 6 per cent to 6.87 million tonnes.
“We are forecasting further demand in the future, but the infrastructure in Guinea needs to be enhanced in order to cater [to] all the demands. We are working with the [Guinea] government at the moment on how we can do it and benefit both sides,” Abdulnasser Bin Kalban, chief executive of EGA, told The National.
EGA continued its deleveraging strategy and made a corporate debt prepayment of Dh2.9 billion during the first half of the year. The company has prepaid Dh9.4 billion in total since mid-2021.
EGA's outstanding corporate debt currently stands at Dh14.4 billion.
In June, EGA signed agreements that could lead to industrial investments in the UAE worth more than Dh1 billion.
The preliminary agreements were signed with Sunstone, the largest producer of carbon anodes in China, and VCI, an Indian disinfectant and carbo-chemicals producer, at the Make it in the Emirates forum in Abu Dhabi.
EGA, one of the world’s largest aluminium producers, has smelters in Abu Dhabi and Dubai, an alumina refinery in Abu Dhabi and a bauxite mine in Guinea.
It is jointly owned by Abu Dhabi sovereign wealth fund Mubadala Investment Company and the Investment Corporation of Dubai.
The UAE is the fifth-largest aluminium-producing country in the world. EGA’s aluminium is the biggest made-in-the-UAE export after oil and gas and is shipped to more than 50 countries.
The aluminium sector accounts for about 1.4 per cent of the UAE's economy, according to EGA.
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'The worst thing you can eat'
Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.
Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines:
Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.
Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.
Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.
Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.
Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.
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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
