Emirates NBD affiliate Network International seeks London listing

Network International, the biggest payment processing company in the Middle East and Africa, plans to list a 25 per cent stake through an initial public offering on the London Stock Exchange.

Existing shareholders of the Dubai-headquartered company will sell down their shareholding in the offer, the company said in a statement on Thursday. It is 49 per cent held by private equity firm Warburg Pincus and General Atlantic and majority held by Dubai’s biggest lender, Emirates NBD, according to Bloomberg, which previously reported that the firm could be valued at about $3 billion (Dh11bn).

The company is seeking listing on the main equities market in London and expects that “it would be eligible for inclusion in FTSE UK indices”, it said, without providing a timeline of the potential IPO or how much it plans to raise from the offering.

“Today’s announcement is an exciting next step in our journey,” Simon Haslam, chief executive of Network International, said. “Our markets of Middle East and Africa are some of the most exciting in the world and are only just beginning the journey from cash to digital payments.”

Middle East companies are increasingly looking to list shares on the London Stock Exchange amid lacklustre trading in the local equities markets. The London bourse is home to Abu Dhabi’s NMC Health and Gulf Marine Services. Al Noor Hospitals Group also listed its shares in London in 2013 before it was bought by Mediclinic.

Network International group revenues have registered a compound annual growth rate of 13 per cent, from $235 million in 2016 to $298m at the end of last year. Its underlying net income climbed to $97.95m in 2018 from $91.762m at the end of 2017.

“The group’s business model is underpinned by a strong customer base, and has a high proportion of recurring revenues, with 93 per cent of [its] revenues in 2018 being recurring in nature,” the company said, adding that it has minimal currency risk as more than 96 per cent of the revenues last year were US dollar-denominated or dollar-pegged.

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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.

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer