NMC Healthcare said its third-quarter revenue beat targets as the UAE’s biggest healthcare provider aims to exit administration and start operations under new ownership before the end of this year.
Gross revenue for the three months to the end of September for NMC’s UAE and Oman business reached $915 million, a 12 per cent annual rise from the $816m reported for the same period in 2020, the company said on Monday. Quarterly revenue was also 8 per cent ahead of the business plan for the July-September period.
The year-to-date number of patient visits across the group medical facilities reached 6.7 million, surpassing 3.7 million recorded for the same period in 2020.
In September, creditors of NMC Healthcare approved its deeds of company arrangement restructuring process, a move that allows the healthcare provider's 34 companies to exit administration.
NMC secured approval for its restructuring proposal from 95 per cent of its creditors. The companies that will exit administration in Abu Dhabi will continue to operate as the NMC Group’s core businesses, it said at the time.
The company, its creditors and advisers are now working on securing the final approvals for the completion of the restructuring and the group’s exit from administration by December 16, NMC said on Monday.
Joint administrators Alvarez & Marsal have been pushing creditors, who were owed more than $6.4 billion by NMC Healthcare, to agree to a restructuring of the business. The move would lead to $4bn of its debts being wiped in return for equity instruments under the Doca process.
Once the group companies exit administration, they will be owned by its creditors.
“We are looking forward to successfully delivering the new NMC Health out of administration to its new owners,” said Richard Fleming, managing director of Alvarez & Marsal Europe.
“It's been a long road and we have had to overcome many obstacles, but we are very grateful to all our stakeholders who have universally rallied behind the NMC team to make it happen.”
NMC Healthcare, which grew from a single clinic, ran into trouble after a 2019 report by short seller Muddy Waters accused the company of inflating its assets and understating its debt.
An independent investigation uncovered more than $4.4bn of previously unreported debt, leading to the company being placed into administration in April last year.
Earlier this year, NMC said it is selling Eugin (Luarmia and Boston IVF) to Fresenius Helios for an enterprise value of €430m ($525m). There are more NMC assets that could be sold off as the company seeks to offload non-core businesses to focus on operations in the UAE and Oman, Ben Cairns, Alvarez & Marsal's managing director for restructuring, said in August.
“We are now entering the finishing straight and need one last effort to pull together the final elements to get over the line,” Mr Fleming. “After significant operational and financial restructuring NMC is better placed than ever to take advantage of the new opportunities ahead.”
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How to play the stock market recovery in 2021?
If you are looking to build your long-term wealth in 2021 and beyond, the stock market is still the best place to do it as equities powered on despite the pandemic.
Investing in individual stocks is not for everyone and most private investors should stick to mutual funds and ETFs, but there are some thrilling opportunities for those who understand the risks.
Peter Garnry, head of equity strategy at Saxo Bank, says the 20 best-performing US and European stocks have delivered an average return year-to-date of 148 per cent, measured in local currency terms.
Online marketplace Etsy was the best performer with a return of 330.6 per cent, followed by communications software company Sinch (315.4 per cent), online supermarket HelloFresh (232.8 per cent) and fuel cells specialist NEL (191.7 per cent).
Mr Garnry says digital companies benefited from the lockdown, while green energy firms flew as efforts to combat climate change were ramped up, helped in part by the European Union’s green deal.
Electric car company Tesla would be on the list if it had been part of the S&P 500 Index, but it only joined on December 21. “Tesla has become one of the most valuable companies in the world this year as demand for electric vehicles has grown dramatically,” Mr Garnry says.
By contrast, the 20 worst-performing European stocks fell 54 per cent on average, with European banks hit by the economic fallout from the pandemic, while cruise liners and airline stocks suffered due to travel restrictions.
As demand for energy fell, the oil and gas industry had a tough year, too.
Mr Garnry says the biggest story this year was the “absolute crunch” in so-called value stocks, companies that trade at low valuations compared to their earnings and growth potential.
He says they are “heavily tilted towards financials, miners, energy, utilities and industrials, which have all been hit hard by the Covid-19 pandemic”. “The last year saw these cheap stocks become cheaper and expensive stocks have become more expensive.”
This has triggered excited talk about the “great value rotation” but Mr Garnry remains sceptical. “We need to see a breakout of interest rates combined with higher inflation before we join the crowd.”
Always remember that past performance is not a guarantee of future returns. Last year’s winners often turn out to be this year’s losers, and vice-versa.
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
