Arabtec Holding has begun talks with the Egyptian government towards setting up a joint venture project to build a million low-cost homes.
Analysts said such a JV could help Arabtec raise financing from local Egyptian banks for the US$40 billion project.
They also said Arabtec might also go down other avenues to raise funds – including an offering on the Egyptian stock market.
“Arabtec could look into a local listing or listing one of its units in the UAE,” said Allen Sandeep, the head of equity research at Egypt-based Naeem Holding.
“Arabtec is in talks with the Egyptian government, including the ministry of defence and military production, to set up and develop one million residential units,” Arabtec said in yesterday.
The announcement to the Dubai bourse came a day after Egypt's influential defence minister, Field Marshal Abdel Fattah El Sisi, said he was resigning from his military post to run for president. The authorities have not yet set a date for the election.
Arabtec’s deal, believed to be the largest housing project in the Arab world, is viewed as a cornerstone of the government’s bid to provide affordable housing to Egyptians. As many as 16 million are estimated to have inadequate housing.
Shares of Arabtec closed up 1.72 per cent yesterday at Dh5.39. Year-to-date, the stock has risen 106.62 per cent.
Arabtec’s share price did not react significantly to yesterday’s news, as many investors are in “wait and see” mode concerning the execution of the project.
“The size of the project is big, so we have to be prudent,” Mr Sandeep noted.
Kareem Ghaly, an equity analyst at the Egypt-based investment bank EFG-Hermes, said there were concerns over Arabtec’s capacity to execute such a huge contract.
“Such concerns stem from the fact that the company has grown its backlog around 150 per cent over the last three to four months following its Dh22.4 billion Aabar contract,” said Mr Ghaly.
In February, Arabtec signed a deal with Aabar to build about 37 towers in Dubai and Abu Dhabi by 2020.
Mr Sandeep said that investing in Egypt’s low and medium income housing segment is positive, as this segment is still untapped.
Ties between the UAE and Egypt have deepened in recent months. The UAE extended $6bn in support of the Arab world’s most populous country following a revolution and the removal of Mohammed Morsi as president in July.
Saudi Arabia and Kuwait have also extended assistance as Egypt struggles with lacklustre growth and a dearth of investment.
Apart from Arabtec, several other UAE companies have already stepped up their activities in Egypt.
Emaar Properties' Egyptian unit, Emaar Misr, announced last month it would spend up to 6 billion Egyptian pounds (Dh3.16bn) on a residential and commercial scheme in Cairo. The Dubai-based retail group Majid Al Futtaim plans to establish several malls in the country over the next years.
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Company profile
Company: Rent Your Wardrobe
Date started: May 2021
Founder: Mamta Arora
Based: Dubai
Sector: Clothes rental subscription
Stage: Bootstrapped, self-funded
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Ziina users can donate to relief efforts in Beirut
Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”
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
Notable cricketers and political careers
- India: Kirti Azad, Navjot Sidhu and Gautam Gambhir (rumoured)
- Pakistan: Imran Khan and Shahid Afridi (rumoured)
- Sri Lanka: Arjuna Ranatunga, Sanath Jayasuriya, Tillakaratne Dilshan (rumoured)
- Bangladesh (Mashrafe Mortaza)
COMPANY%20PROFILE
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