The UAE's aluminium producers are reporting soaring demand as the United States returns to stronger growth.
The price of the metal, which fell for much of last year, has risen 11.1 per cent since the start of the year to US$2,245 per tonne.
Emirates Aluminium is expecting strong growth from the US to drive sales in the year ahead as the world's largest economy shows strong signs of recovery.
The aluminium smelter, known as Emal and based in Abu Dhabi, expects sales to the US to more than double from 100,000 tonnes last year to 250,000 tonnes this year, said Saeed Fadhel Al Mazrooei, the company's president and chief executive.
"The orders on our metals have increased because one of our prime products is for automotives," he said, adding that the company hoped to capitalise on surging demand for trucks.
The demand was leading the smelter to boost its production capacity, Mr Al Mazrooei added.
"I have my order book of 900,000 … tonnes. I can only produce 750,000 tonnes," he said.
Emal is a joint venture between Dubai Aluminium (Dubal) and Mubadala Development, a strategic investment company owned by the Abu Dhabi Government.
Dubal reported full-year net profit of Dh3.52 billion, an increase of 65.2 per cent on the previous year.
"The results reflect a combination of higher production and sales volumes, plus the benefit of higher aluminium prices, coupled with sustained focus on controlling the cash conversion cost," the company said in a statement carried by Bloomberg News.
Sales grew by 29 per cent to Dh11.14bn, the statement said.
Elsewhere in the region, Aluminium Bahrain has lagged, with the company's shares falling 10.1 per cent since the start of the year to 0.575 Bahraini dinars as a bribery scandal swirled.
But with a price-to-earnings ratio of 3.8, the stock looks extremely cheap - especially with a yield approaching 7 per cent.
But the growth in orders for UAE aluminium comes alongside indications of decelerating growth in China, the world's biggest car market and a major importer of industrial commodities. Whether strong US demand can compensate remains to be seen.
ghunter@thenational.ae
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Emirates exiles
Will Wilson is not the first player to have attained high-class representative honours after first learning to play rugby on the playing fields of UAE.
Jonny Macdonald
Abu Dhabi-born and raised, the current Jebel Ali Dragons assistant coach was selected to play for Scotland at the Hong Kong Sevens in 2011.
Jordan Onojaife
Having started rugby by chance when the Jumeirah College team were short of players, he later won the World Under 20 Championship with England.
Devante Onojaife
Followed older brother Jordan into England age-group rugby, as well as the pro game at Northampton Saints, but recently switched allegiance to Scotland.
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
HAJJAN
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