Aldar Properties, the developer behind some of Abu Dhabi's most eye-catching projects, yesterday posted its third straight profitable quarter since the company's debt was restructured in January.
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Net profit for the third quarter was Dh144 million (US$39.2m), compared with a loss of Dh731.2m in the same period a year ago, as the company continued handovers of homes in Raha Beach.
Revenue for the quarter jumped to Dh3.13 billion, compared with Dh505.3m the same period a year ago, the company reported.
The company's quarterly results includeDh2.7bn from the sale of land on Yas Island to the Abu Dhabi Government, part of the January funding plan.
The company also said it was able to raise Dh734.6m in bank borrowings, "demonstrating continued access to funding markets".
"This period has seen good progress in areas of strategic importance to the business," said Ali Eid Al Mheiri, the chairman of Aldar Properties.
Aldar cut 105 employees, 24 per cent of its staff, as part of a corporate restructuring last week. The company, which developed Ferrari World and Raha Beach, said it would cut back on development plans and focus more on property and asset management.
The results for the third quarter highlighted many of the key areas for Aldar as it reshapes the company.
Rental income from offices and retail space increased to Dh537.3m for the first nine months of the year compared with Dh269.8m last year. And the company's schools and hotels business generated Dh368.6m for the three quarters this year compared with Dh247.6m in the same period a year earlier.
Aldar Academies opened three new schools in the third quarter and appointed Viceroy to operate the Yas Hotel.
The company's overall profit for the nine-month period was Dh460.5m compared with a net loss of Dh1.5bn over the same period last year.
Aldar completed work on the 1,221 homes in the Al Zeina development of Raha Beach in the third quarter. The company also made "significant progress" on the Al Falah national housing project and other fee-based projects, such as the Cleveland Clinic and Masdar.
In January Aldar announced a funding plan under which the Abu Dhabi Government would buy Dh10.9bn of the company's infrastructure assets on Yas Island, Dh5.5bn of residential units and land, and issue a Dh2.8bn convertible bond.
The bond was purchased by Mubadala Development, a strategic investment company owned by the Abu Dhabi Government.
kbrass@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.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
