Adnoc Distribution, the UAE’s largest fuel and convenience retailer, reported a 50 per cent surge in its fourth-quarter revenue and the company expects positive growth in 2022 amid economic recovery.
Revenue for the three months to the end of December climbed to Dh6.2 billion ($1.68bn), the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded. Revenue for the full year rose 30 per cent to about Dh21bn.
“The company is well positioned to grow its earnings amid economic recovery and driven by expansion in domestic and international markets, while it continues to explore new opportunities to accelerate growth," Adnoc Distribution said.
The UAE’s economy continued to recover from the coronavirus pandemic on the back of Dh388bn worth of stimulus measures as well as a successful vaccination programme.
The Arab world’s second-largest economy is expected to grow 4.6 per cent this year, according to Emirates NBD. That's slightly higher than the central bank's estimates which put growth at 4.2 per cent this year.
Adnoc Distribution plans to open 60 to 80 new stations this year, including 20 to 30 new stations in the UAE and 40 to 50 new stations in international markets including Saudi Arabia.
“Domestically, Dubai offers high growth potential for the company to gain market share and is at the heart of our smart growth strategy,” it said.
There are currently 10 stations in various stages of execution in Dubai, with an additional pipeline of 10 more stations approved for further development, it added.
Adnoc Distribution also aims to expand in Saudi Arabia, the Arab world’s largest economy. There are currently 40 service stations operating in Saudi Arabia and is looking to expand further.
“There is a strong pipeline in Saudi Arabia to expand the network further through different routes i.e. acquisitions, lease agreements and greenfield,” Adnoc Distribution said.
The company expects to invest approximately Dh918 million of capital expenditure this year, to deliver on its growth plans.
“We maintain a robust balance sheet and expect to continue to deliver strong financial performance in the future,” Bader Al Lamki, chief executive of Adnoc Distribution said.
Net profit, however, dropped about 33 per cent to Dh571m in the fourth quarter. Full-year profit slid 7.4 per cent to Dh2.25bn, according to the statement.
The company’s board recommended a dividend of Dh1.285bn (10.285 fils per share) for the second half of 2021, taking full-year 2021 dividend to Dh2.57bn.
In May, Adnoc Distribution joined the MSCI Emerging Markets index, which is tracked by funds with assets worth billions of dollars. The company was also included in the FTSE Emerging Markets Index in September. The index tracks stocks from emerging markets globally and includes large and medium-cap securities.
The company has a network of 462 service stations and 346 convenience stores across the UAE as of December 31, 2021.
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
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
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
Killing of Qassem Suleimani
Killing of Qassem Suleimani
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What Super Bowl LIII
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
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