Olive Rock Partners, an independent private equity firm based in Abu Dhabi, completed its debut deal with an investment in healthcare company UEMedical.
Olive Rock, in which Abu Dhabi Catalyst Partners became an anchor investor in March, said it is investing in the business alongside an affiliate of New York-based alternative asset firm Cerberus Capital Management. It did not reveal the value of the investment in UEMedical, but founding partner Muhannad Qubbaj told The National that it had secured an "influential minority" stake.
“We are excited to partner with the UEMedical team and shareholders to further enhance the growth of this exceptional platform within Abu Dhabi and its neighbouring Emirates as well as abroad, focusing initially on Saudi Arabia,” Mr Qubbaj said.
“This is a landmark deal within a growing and attractive sector globally and we are very pleased to be working with Cerberus to support it.”
The number of hospitals in the UAE grew by 6.2 per cent per year to 158 in 2020, with the bulk (70 per cent) of these operated by private sector companies, according to the UAE Health Sector Pulse report published by Alvarez & Marsal last month.
Abu Dhabi has 66 hospitals containing about 5,500 beds, according to the report. Occupancy rates stand at 55 per cent and the market remains relatively fragmented, with "few dominant players", the report said.
UEMedical was founded in 2008 and has 21 hospitals and health centres. The company operates Danat Al Emarat Hospital, a specialist women's and children's hospital in the UAE capital, as well as the HealthPlus fertility and family health centres and the Moorfields Eye Hospital Centre Abu Dhabi – a joint venture with the London-based specialist Moorfields Eye Hospital NHS Foundation Trust.
The company employs more than 2,300 healthcare professionals and has treated about 700,000 patients. It will use the new funding from Olive Rock and Cerberus to add complementary services and extend its geographical reach.
“With an expanding focus on healthcare in the region, the company [UEMedical] is well-positioned to broaden its reach,” Gabriel Schulze, senior managing director of Cerberus, said. “We look forward to partnering with Olive Rock as we support UEMedical on its mission to deliver exceptional, patient-centric care.”
Olive Rock was founded last year by Mr Qubbaj and Abdullah Shahin, both of whom are former partners at Gulf Capital. The company is currently in the process of raising its debut fund.
Cerberus Capital Management manages $53 billion of private equity, private credit and real estate assets.
Olive Rock and Cerberus were advised on their investment by law firm Freshfields Bruckhaus Deringer.
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
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.
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