Global ports giant DP World reported a 2.4 per cent increase in gross container volumes for the fourth quarter of last year, positioning the company for "improved" full-year financial results, it said.
The Dubai-based ports operator handled 19.5 million twenty-foot equivalent units (TEUs) across its global portfolio of terminals in the three-month period to the end of December, DP World said on Monday.
DP World's fourth-quarter gross volume growth was mainly driven by Asia Pacific and India, though overall growth rates for the period moderated as expected due to "challenging" global economic conditions, it said.
The company also reported a 2.8 per cent increase in annual container shipping volumes for last year, outperforming the industry forecast, but warned of geopolitical and economic uncertainty next year.
DP World said it handled 79 million TEUs across its portfolio last year, with all the regions in which it operates recording like-for-like growth during the year.
The annual throughput results are "once again ahead of industry forecast of a marginal decline of 0.5 per cent," said Sultan Ahmed bin Sulayem, group chairman and chief executive of DP World.
"This outperformance continues to demonstrate that we are in the right locations and our strategy to offer integrated supply-chain solutions to beneficial cargo owners is bearing fruit."
The World Trade Organisation forecast a slow down in trade growth in the closing months of 2022 and into this year as the global economy continues to be "buffeted by strong headwinds", according to its latest Goods Trade Barometer on November 28.
This is in line with the WTO's forecast of world merchandise trading (an average of import and export) to increase by 1 per cent this year, compared with 3.5 per cent growth last year. This is due to several shocks including the war in Ukraine, high energy prices and monetary tightening in major economies, it said.
The International Monetary Fund expects world trade growth to decline this year to 2.4 per cent, despite an easing of supply bottlenecks, before rising to 3.4 per cent next year, according to its latest outlook in January.
DP World's annual container shipping volumes growth was largely driven by the Asia Pacific, Americas and Australia regions.
Its flagship Jebel Ali port in Dubai handled 14 million TEUs last year, up 1.7 per cent from 2021 on a like-for-like basis. Its origin and destination cargo grew by 8.6 per cent last year.
“Overall, we ... remain focused on growing profitability while managing growth capex," Mr bin Sulayem said. "The solid volume performance leaves us well placed to deliver an improved set of full-year results.
"Looking ahead to 2023, we expect our portfolio to continue to deliver growth but the outlook remains somewhat uncertain due to rising inflation, higher interest rates and geopolitical uncertainty."
World trade and container volumes will receive a boost from China’s reopening, helping to ease the economic situation, though there will not be an immediate sharp upswing, Mr bin Sulayem told Bloomberg during the World Economic Forum meeting in Davos last month.
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
Essentials
The flights
Etihad and Emirates fly direct from the UAE to Delhi from about Dh950 return including taxes.
The hotels
Double rooms at Tijara Fort-Palace cost from 6,670 rupees (Dh377), including breakfast.
Doubles at Fort Bishangarh cost from 29,030 rupees (Dh1,641), including breakfast. Doubles at Narendra Bhawan cost from 15,360 rupees (Dh869). Doubles at Chanoud Garh cost from 19,840 rupees (Dh1,122), full board. Doubles at Fort Begu cost from 10,000 rupees (Dh565), including breakfast.
The tours
Amar Grover travelled with Wild Frontiers. A tailor-made, nine-day itinerary via New Delhi, with one night in Tijara and two nights in each of the remaining properties, including car/driver, costs from £1,445 (Dh6,968) per person.
RACE CARD
6.30pm: Maiden (TB) Dh82,500 (Dirt) 1,200m
7.05pm: Maiden (TB) Dh82,500 (D) 1,900m
7.40pm: Handicap (TB) Dh102,500 (D) 2,000m
8.15pm: Conditions (TB) Dh120,000 (D) 1,600m
8.50pm: Handicap (TB) Dh95,000 (D) 1,600m
9.25pm: Handicap (TB) Dh87,500 (D) 1,400m
