UAE’s NMDC Energy, formerly National Petroleum Construction Company (NPCC), is making a pivot to offshore wind, which is set to become a major revenue source for the company, and plans to invest about $500 million in an offshore vessel, its chief executive said.
“We are confident enough [about expanding] further in this important sector … we are now out in the market to shipyards to build a dedicated offshore vessel for wind, and this might be an investment of around $500 million,” Ahmed Al Dhaheri told The National.
Plans include investment in jack-up barges for tower, blade, and turbine installation, and subsequently, acquiring a vessel for laying interconnecting cables in offshore wind projects, he added.
NMDC Energy is also engaging with international energy companies such as TotalEnergies, EDF, RWE and, Iberdrola, Mr Al Dhaheri said, without elaborating.
“We see the potential in offshore wind, and this can in the future have a good share of our business and of our revenue moving forward,” he added.
This is a notable shift for the company, which mainly serves clients in the onshore and offshore oil and gas industries with engineering, procurement, and construction solutions.
NMDC Energy's only past involvement in wind energy was limited to installing monopiles – the most advanced type of foundation for offshore wind turbines – at the Yunlin offshore wind farm in Taiwan.
NMDC Energy, which its parent company NMDC listed on the Abu Dhabi Securities Exchange in September, reported full-year 2024 revenue of Dh14.44 billion ($3.93 billion), an 82 per cent increase from the previous year. Profit attributable to shareholders of the company surged by about 80 per cent year-over-year to Dh1.4 billion.
The company attributed its revenue growth to strong operational performance and expansion into new projects both domestically and abroad.
“We are trying to expand into other markets, so we are keeping an eye on developments in North Africa and West Africa as well as countries in South-east Asia. We are pursuing certain tenders, which will hopefully yield good results for the company,” Mr Al Dhaheri said.
NMDC Energy currently has a backlog of projects worth Dh 58 billion, he said.
Last month, the company won a $1 billion contract with a Taiwanese firm to build undersea gas pipelines, among other projects.
Macro troubles
Mr Al Dhaheri expects the world to move “aggressively” into offshore wind even as the industry currently faces rising costs, supply chain challenges, and planning delays.
Political support for wind energy is also waning, with US President Donald Trump recently pausing new federal offshore wind leasing for an environmental and economic review.
“I see that in the years to come, we'll be seeing many projects in this sector. Now, how this will change because of the political environment, this is something that we are yet to see,” Mr Al Dhaheri said.
“But today, there are a number of projects that are already sanctioned and they are lined up for execution.”
Nearly 40 per cent of the 380-gigawatt offshore wind pipeline expected to reach final investment decision between 2024 and 2030 is “risked,” leaving a significant portion vulnerable, Westwood Global Energy Group said in a report on Wednesday.
Norway-based consultancy Rystad Energy projects steady growth in the offshore wind sector, forecasting global installations – excluding mainland China – to surpass 520 gigawatts by 2040.
The five pillars of Islam
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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Population: 44.13 million
Armed conflict in Donbass
Russia-backed fighters control territory
Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.
