Marka, the Dubai-listed retail group, announced another quarter of losses yesterday, but remained confident about its plans to deliver profit in 2016.
The company reported a loss of Dh18.13 million for the first three months of the year. It did not provide a figure for the corresponding period a year earlier.
The retail sector has been hurt by the strong US dollar, to which the UAE dirham is pegged, making purchases more expensive for many visitors.
Still, Marka has aggressive expansion plans for 2016 both in the UAE and regionally and believes its portfolio of brands and franchising operations will drive profit.
“We plan to double the retail space we have now in the next 12 months,” said Nick Peel, the chief executive of Marka.
He said he was confident Marka’s scaleability and brand portfolio would bring profit this year.
“We currently have 50 outlets across our portfolio and Marka is planning to open four new Reem Al Bawadi restaurants, three new Cheeky Monkeys Playland & Sweet Surprises outlets, and a Modell’s outlet in Al Ain, along with our expansion in Qatar and franchising agreements in Saudi Arabia,” he said.
During the third quarter of 2015 Marka acquired the Middle East franchise rights for the ice-cream brand Morelli’s Gelato; dinh van, a French jewellery brand; Carven, a French fashion brand; and City Chic, a fashion brand for plus-size women.
So far this year dinh van, Carven and Essentiel have opened in Dubai’s City Walk Phase 2, City Chic stores opened in Ras Al Khaimah, Dubai and Sharjah and Icons first two store-in-store Dubai outlets opened in Modell’s Mall of the Emirates and City Center Mirdif.
“Despite the challenging economy as a backdrop to its operations, Marka continues to make progress on its business plan to build a portfolio of exciting and profitable hospitality and fashion/beauty brands,” said Khaled Almheiri, vice chairman and managing director of Marka.
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Family: Parents and four sisters
Education: Bachelor’s degree in business management and marketing at American University of Sharjah
A self-confessed foodie, she enjoys trying out new cuisines, her current favourite is the poke superfood bowls
Likes reading: autobiographies and fiction
Favourite holiday destination: Italy
Posts information about challenges, events, runs in other emirates on the group's Instagram account @Anagowrunning
Has created a database of Emirati and GCC sportspeople on Instagram @abeermk, highlight: Athletes
Apart from training, also talks to women about nutrition, healthy lifestyle, diabetes, cholesterol, blood pressure
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
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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
