Aldar Properties, the biggest listed developer in Abu Dhabi, is increasing its support to property, education and retail customers to Dh190 million as it looks to supplement the government's efforts to soften the blow of the coronavirus pandemic on the emirate's economy.
The developer, which already set aside Dh4 billion to make sure its contractors, suppliers and consultants are paid on time, said it launched several support initiatives across its development and asset management businesses.
"The world continues to face a unique set of circumstances that call for sustained leadership, collaboration, solidarity and unity," Talal Al Dhiyebi, chief executive of Aldar, said on Tuesday.
“The scale of what we are witnessing is unprecedented and transcends borders, so it is a time for us to all work together … to emerge stronger and more connected.”
The company, he said, has regularly been communicating with its stakeholders and will adhere to the guidance from the UAE government, health authorities and the World Health Organisation to “minimise the impact on our people, our community and our economy”.
The number of economic incentives by the UAE federal government and individual emirates to help the economy deal with the fallout from the outbreak exceeded 100 in a span of 45 days, the Federal Competitiveness and Statistics Authority said on April 20.
The initiatives range from subsidised utility bills to government fee waivers and rent concessions intended to help residents and small and medium-sized enterprises withstand fluctuations in economic conditions.
The UAE, the second-biggest Arab economy, was the first in the region to introduce Dh282bn in fiscal and monetary support, including a Dh256bn package for banks that provided zero-interest funding and freed up capital to boost lending growth in the country.
The Abu Dhabi government launched its own package of financial incentives in co-ordination with local banks and the emirate's Finance and Economic Development departments.
Aldar said its measures are intended to support residential communities, schools, retail partners and homebuyers in the capital.
It introduced a series of initiatives worth Dh60m to help its retail partners, with a particular focus on SMEs and start-ups, the company said.
It also allocated Dh60m to support residential buyers and tenants through low-cost home finance products.
Across its education portfolio, the developer said it allocated Dh50m to support a reduction of fees by 20 per cent, provide 10,000 laptops to students and develop online learning platforms.
Aldar has also earmarked Dh20m to various other initiatives such as national sanitation efforts and waived all administrative fees involved in transactions with the company.
The specs
Engine: 2-litre 4-cylinder and 3.6-litre 6-cylinder
Power: 220 and 280 horsepower
Torque: 350 and 360Nm
Transmission: eight-speed automatic
Price: from Dh136,521 VAT and Dh166,464 VAT
On sale: now
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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
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Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
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Don’ts
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