Property developer Arada is launching five residential projects and is targeting sales of up to Dh2.4 billion ($653 million) this year and Dh3bn in 2022 as it taps into an ongoing rebound in the UAE’s property market.
The company's new launches will include serviced apartments and other residential units at its Dh24bn Aljada master development in Sharjah, its chief executive Ahmed Alkhoshaibi told The National.
Arada is a joint venture between KBW Investments – a company controlled by Saudi Arabia’s Prince Khaled bin Alwaleed – and Basma Group of Sharjah.
The work on four projects will start next year, while one project named Boulevard 3 is already under construction, Mr Alkhoshaibi said, without providing details about the total cost.
It will finance new projects through a mix of debt and equity as well as proceeds from sales.
The UAE’s property market is bouncing back from the impact of the coronavirus pandemic, driven by government initiatives including the expansion of the 10-year golden visa programme and other measures. Experts say that the real estate market could experience a strong rebound in the next 18 months as the policymakers' response to counter the pandemic further encourages investors.
“Confidence overall in the UAE has been growing thanks to the government initiatives,” Mr Alkhoshaibi said. He also said that Sharjah, where the company has all its projects, has experienced steady growth in the real estate sector in the past 15 years.
Total real estate transactions in Sharjah grew 22.7 per cent annually in the third quarter to Dh5.7bn, according to data released by the Sharjah Real Estate Registration Department on Monday. The emirate recorded 16,781 transactions during the period.
“Sharjah itself has been a very resilient market … and it’s always been like a safe haven for investors,” he said.
The UAE's property market "will continue to grow in the next few years”, said Mr Alkhoshaibi, echoing the general market sentiment.
Arada recorded total sales of Dh2bn so far in 2021 and is targeting Dh2.3bn to Dh2.4bn in sales by the end of this year. In 2022, it aims to achieve Dh3bn in sales.
Currently, the company has no plans for an initial public offering but will consider it if “there is a value proposition and there is a need”, he said.
However, Arada may tap bond markets to raise more money to help it expand and start new projects in other emirates.
“We are discussing with our advisers on the right size, especially for our growth strategy and expansion plans,” Mr Alkhoshaibi said.
Arada secured Dh250m from Dubai Islamic Bank to speed up the construction of its Aljada mega-project in the emirate earlier this year.
The company also aims to expand to Dubai and Abu Dhabi in 2022 and is in discussions to buy land in the two emirates to launch projects.
“I will expect to launch two to three new projects outside of our existing three master plans (in Sharjah). My forecast for 2022 is that it will be a busy year for us,” Mr Alkhoshaibi said.
In 2021, the company sold 2,500 units to Emiratis, GCC citizens, Indians and customers from other countries.
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
The five pillars of Islam
1. Fasting
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3. Hajj
4. Shahada
5. Zakat
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Louis Tomlinson
3 out of 5 stars
(Syco Music/Arista Records)
In numbers
1,000 tonnes of waste collected daily:
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- 150 tonnes to landfill
- 50 tonnes sold as scrap metal
800 tonnes of RDF replaces 500 tonnes of coal
Two conveyor lines treat more than 350,000 tonnes of waste per year
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The biog
Name: Dhabia Khalifa AlQubaisi
Age: 23
How she spends spare time: Playing with cats at the clinic and feeding them
Inspiration: My father. He’s a hard working man who has been through a lot to provide us with everything we need
Favourite book: Attitude, emotions and the psychology of cats by Dr Nicholes Dodman
Favourit film: 101 Dalmatians - it remind me of my childhood and began my love of dogs
Word of advice: By being patient, good things will come and by staying positive you’ll have the will to continue to love what you're doing
