Kuwait’s budget carrier, Jazeera Airways, said that it is bullish on the Egyptian market this year and expects double-digit growth, boosted by an improvement in the Kuwaiti economy.
"I still believe we can do a double- digit growth this year," Marwan Boodai, Jazeera Airways Group chairman, told The National on the sidelines of the annual general meeting of the International Air Transport Association, the trade association that represents airlines from around the globe.
“We have positive signs. The demand is picking up … the population of Kuwait is growing, more projects are coming up, government expenditure, infrastructure, and in general the Kuwaiti public have got more disposable income so they travel a lot.”
Jazeera Airways’ first quarter net profit was down 41.8 per cent year-on-year at 2.1 million Kuwaiti dinars (Dh27.3m). Revenue slipped to 13.8m dinars from 14.7m dinars.
Jazeera focuses on two-and-a-half hour flights out of Kuwait. The carrier said it plans to add one or more destinations this year; however, its main objective is to increase capacity to existing destinations.
Mr Boodai said that Egypt could be one of the destinations to which it could add capacity. Currently the Kuwaiti carrier flies to six destinations in Egypt, including Cairo, Alexandria and the Red Sea resort of Sharm El Sheikh.
“Egypt in general is now picking up. Cairo is very important for us. Kuwait holds the second biggest population of immigrant Egyptians after Saudi Arabia, so you can imagine the demand,” said Mr Boodai.
“Many Egyptians in Kuwait own houses in Sharm El Sheikh, but in general Egypt is coming back again. The past two-three years, the Egyptian market was driven by the Egyptian population living in Kuwait, today there are many Kuwaitis and tourists coming back to Egypt.”
Jazeera Airways was established in 2004, ending the national dominance of Kuwait Airways. Jazeera flies to 19 destinations across the Middle East, including Dubai, Manama, Beirut and Amman.
The company’s shares trade on the Kuwait exchange. Their range over the past year is between 430 and 540 dinars. Yesterday they closed at 455 dinars.
selgazzar@thenational.ae
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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.
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