Etihad Airways sold its 40 per cent stake in Air Seychelles to the Indian Ocean island as the Abu Dhabi airline moves away from a strategy of growth through investments in other airlines.
Etihad announced that its management contract had also ended but said Air Seychelles' chief executive Remco Althuis and chief financial officer Michael Berlouis would stay on until June 30 to assist with the airline’s transition.
An Etihad spokeswoman said the UAE airline would no longer be a shareholder in Air Seychelles but she did not provide the value of the sale. Etihad acquired the stake in 2012.
The move is in line with Etihad’s five-year restructuring plan under which it is stepping back from its global equity alliance strategy and repositioning itself as a mid-sized boutique airline operating smaller, wide-body aircraft.
Boeing's 787 Dreamliner will serve as the “backbone” of the fleet.
For the Seychelles, famous for its turquoise beaches and diving spots, the deal is an opportunity to focus on profitable routes as air travel recovers from the coronavirus-induced slowdown that crimped demand.
“This is a time of opportunity for both Air Seychelles and the country as tourism starts to rebuild following the reopening of its borders,” Etihad said.
The airline said it remained committed to Air Seychelles as a commercial codeshare partner.
“The Seychelles is an important destination on Etihad’s global network, with bookings steadily increasing following its reopening to tourism,” Etihad said.
Patrick Payet, the island nation's Secretary of State in the Ministry of Finance, said a debt of $72.3 million that Air Seychelles owed Etihad had been discounted by 79 per cent, according to the Seychelles News Agency. Repayment of the remaining debt will start from 2022 onwards.
The Seychelles also offered to pay $20m of the $71.5m still owed to bondholders, he said.
The island nation is in discussions with the Trade Development Bank for a government loan to pay bondholders and Etihad, he said.
“All of these liabilities will be in the government’s books, so Air Seychelles will have a clean sheet from the liability that they have,” said Mr Payet.
A new board of directors has been appointed at Air Seychelles that will appoint a new chief executive and chief financial officer, the news agency reported, quoting government officials.
The board will also review the airline’s operations and make recommendations to the government, it said.
Brief scores:
Pakistan (1st innings) 181: Babar 71; Olivier 6-37
South Africa (1st innings) 223: Bavuma 53; Amir 4-62
Pakistan (2nd innings) 190: Masood 65, Imam 57; Olivier 5-59
Mohammed bin Zayed Majlis
The specs
Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now
Ponti
Sharlene Teo, Pan Macmillan
THE SPECS
BMW X7 xDrive 50i
Engine: 4.4-litre V8
Transmission: Eight-speed Steptronic transmission
Power: 462hp
Torque: 650Nm
Price: Dh600,000
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
Afghanistan Premier League - at a glance
Venue: Sharjah Cricket Stadium
Fixtures:
Tue, Oct 16, 8pm: Kandahar Knights v Kabul Zwanan; Wed, Oct 17, 4pm: Balkh Legends v Nangarhar Leopards; 8pm: Kandahar Knights v Paktia Panthers; Thu, Oct 18, 4pm: Balkh Legends v Kandahar Knights; 8pm: Kabul Zwanan v Paktia Panthers; Fri, Oct 19, 8pm: First semi-final; Sat, Oct 20, 8pm: Second semi-final; Sun, Oct 21, 8pm: final
Table:
1. Balkh Legends 6 5 1 10
2. Paktia Panthers 6 4 2 8
3. Kabul Zwanan 6 3 3 6
4. Nagarhar Leopards 7 2 5 4
5. Kandahar Knights 5 1 4 2
THE BIO
Family: I have three siblings, one older brother (age 25) and two younger sisters, 20 and 13
Favourite book: Asking for my favourite book has to be one of the hardest questions. However a current favourite would be Sidewalk by Mitchell Duneier
Favourite place to travel to: Any walkable city. I also love nature and wildlife
What do you love eating or cooking: I’m constantly in the kitchen. Ever since I changed the way I eat I enjoy choosing and creating what goes into my body. However, nothing can top home cooked food from my parents.
Favorite place to go in the UAE: A quiet beach.
Profile of Bitex UAE
Date of launch: November 2018
Founder: Monark Modi
Based: Business Bay, Dubai
Sector: Financial services
Size: Eight employees
Investors: Self-funded to date with $1m of personal savings
Company profile
Name: Steppi
Founders: Joe Franklin and Milos Savic
Launched: February 2020
Size: 10,000 users by the end of July and a goal of 200,000 users by the end of the year
Employees: Five
Based: Jumeirah Lakes Towers, Dubai
Financing stage: Two seed rounds – the first sourced from angel investors and the founders' personal savings
Second round raised Dh720,000 from silent investors in June this year
