Arabtec shares were lifted yesterday on news that its chief executive had increased his personal shareholding in the company, making him the single largest investor in the builder of Burj Khalifa.
Hasan Ismaik's stake in the construction firm climbed to 28.84 per cent from 20.51 per cent previously, according to data published yesterday on the Dubai Financial Market.
The acquisition means that Mr Ismaik is now the single largest shareholder in the company, overtaking Aabar, the Abu Dhabi investment fund.
Arabtec announced on May 29 that Mr Ismaik had increased his stake to 21.46 per cent from 8.03 per cent.
Mr Ismaik’s stake was subsequently reported to have fallen to 20.51 per cent on Monday. No explanation was given for the decrease.
Arabtec’s shares closed up 2.55 per cent in Dubai yesterday at Dh6.43 each.
Aabar holds a 21.57 per cent shareholding in the company via four subsidiaries, after a series of share purchases in 2012. Arabtec said in March last year that the fund would not seek to further increase its stake in the company.
Mr Ismaik joined Arabtec in August 2012 and was appointed CEO in February 2013. He is one of five individuals on Arabtec’s nine-person board brought in by Aabar.
An Arabtec statement issued after Mr Ismaik’s stake increase last month said that the move was a vote of confidence in the company, and was designed to reduce volality in the company’s share price.
However, one UAE-based analyst, requesting anonymity, said the move could signal a number of things.
“I’ve never seen a CEO buying up a 20 per cent stake of a company of Arabtec’s size in a single week,” the analyst said.
“You could take the move at face value and say that it’s because he believes the stock is undervalued. On the other hand you could read it as a move to keep the share price high, and to accumulate shares to use as currency for a possible future merger or acquisitions.”
Arabtec shares have more than trebled in value since the start of the year, benefiting from the accelerating pace of construction in the UAE and the prospect of contracts in Egypt.
However the company's shares have endured a volatile month, shedding 9 per cent of their value in the first full week of trading after the announcement of their inclusion in MSCI's Emerging Markets Index in mid-May, before recovering much of their value in the past two weeks.
Mr Ismaik’s stake increases may have been accompanied by other share purchases by other Arabtec or Aabar officials, in a move to shore up control of the company, the analyst speculated.
An Arabtec spokesman declined to comment.
jeverington@thenational.ae
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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
