Conares owner plans new steel mill after gaining licence for onshore business

The chief executive of the Conares steel business is planning to build a steel mill in the UAE after gaining formal approval from the Dubai government to launch a business on the mainland.

Bharat Bhatia intends to build a plant capable of manufacturing 100,000 tonnes of steel per year after securing a licence from Dubai FDI, an arm of the Department of Economic Development, for a 100 per cent-owned onshore business. He and his family have run Conares, a steel production and trading business, from the Jebel Ali Free Zone since 1988.

“It feels great to hold [a] Dubai FDI licence to own an industrial manufacturing unit in the UAE’s mainland. After residing in the UAE for more than 30 years, this adds massive value to my business and we hope to contribute more to economic growth,” Mr Bhatia said in a statement.

Conares initially built its business in the UAE through trading and re-exporting steel, supplying pipes and rebar to the UAE’s construction sector. In recent years, it has added local manufacturing, building a rebar factory and pipe mills in Jebel Ali. The company has an annual turnover of about Dh1 billion and a capacity to manufacture one million metric tonnes per year.

The Dubai government passed a Foreign Direct Investment law allowing for 100 per cent foreign ownership of onshore UAE companies in certain categories in 2018. In March this year, an update set out the 122 different sectors and economic activities in which 100 per cent ownership is permitted.

Conares is planning an investment of about Dh25 million to Dh50m in the new mill, Mr Bhatia told The National.

It will help to serve projects in the UAE and the wider Arab world, promoting a "Made in UAE" product range, Mr Bhatia said in the statement.

The new FDI Iaw will also encourage more investors to set up businesses in the industrial sector, which is the “backbone” of any global economy, he added.

“The business of trading and re-exports is slowly fading out. Value addition is the only way forward,” Mr Bhatia said.

Conares currently supplies steel to Dubai's Expo 2020 and the Etihad Rail project.

"We foresee a good demand for our products for ongoing and upcoming projects in the UAE,” Mr Bhatia said.

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The specs

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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

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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

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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.

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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

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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