Dubai property developer Deyaar reported a 184 per cent annual surge in its 2022 net profit as its revenue was boosted by the UAE’s property market recovery.
Net profit for the full year climbed to Dh144.2 million ($39.26 million), the company said in a regulatory filing on Tuesday to the Dubai Financial Market, where its shares are traded.
Revenue for the 12-month period rose about 62 per cent annually to Dh803.4 million, while total assets grew nearly 7 per cent year-on-year to Dh6.17 billion.
The UAE's property market rebounded strongly from the Covid-19 induced slowdown, driven by government initiatives and higher oil prices.
Expo 2020 Dubai, held for six months from October 2021 to March 2022, also had a positive impact on the property sector.
The performance of the Dubai property market last year was described as “exceptional” by Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, as the value of deals reached a record high of Dh528 billion.
The value of transactions was up 76.5 per cent annually in 2022, while the number of transactions, at 122,658, was up 44.7 per cent on the year, a Dubai Media Office statement said last week.
The sector's “exceptional performance” will help achieve Dubai's vision to be “one of the world’s top three cities”, said Sheikh Hamdan.
“The results also support the goal of the Dubai Economic Agenda D33 … to double the size of Dubai's economy by 2033. The sector is a pillar of Dubai's strategy for sustainable development and a vital driver of its 2040 Urban Master Plan.”
Deyaar is majority owned by Dubai Islamic Bank, the UAE’s biggest Sharia-compliant lender.
It developed the Midtown project in Dubai Production City, with an investment of Dh2.6 billion.
Deyaar successfully completed a capital restructuring programme in June by writing off accumulated losses worth Dh1.7 billion from previous years, it said in the bourse statement.
The company also received a payment of Dh200 million after it signed the final settlement agreement in its land dispute with master developer Limitless, it said last month.
In 2019, a UAE court ordered Limitless to pay Dh411.9 million to Deyaar in a dispute related to the purchase of land. The court also ordered Limitless to pay Deyaar's fees, as well as Dh61.1 million in compensation.
In December, Deyaar said it planned to launch three new projects worth Dh300 million as it focuses on expanding its real estate portfolio amid higher demand from buyers.
The projects, comprising about 400 residential units and hotel apartments, will be launched in the Al Furjan area of Dubai, it said.
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Short-term let permits explained
Homeowners and tenants are allowed to list their properties for rental by registering through the Dubai Tourism website to obtain a permit.
Tenants also require a letter of no objection from their landlord before being allowed to list the property.
There is a cost of Dh1,590 before starting the process, with an additional licence fee of Dh300 per bedroom being rented in your home for the duration of the rental, which ranges from three months to a year.
Anyone hoping to list a property for rental must also provide a copy of their title deeds and Ejari, as well as their Emirates ID.
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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