Aldar Properties reported a 30 per cent increase in third quarter revenue on the back of higher residential property sales and a growth in income from its third-party development management business.
Revenue for the three months to September 30 grew to Dh2.1 billion ($571.8 million). Net profit rose 8 per cent to Dh416m.
"The strength of Aldar’s business continues to be demonstrated in this challenging year, with our highly diversified business model delivering strong earnings," Aldar's chief executive Talal Al Dhiyebi said in a statement to the Abu Dhabi Stock Exchange, where its shares trade.
Aldar is the UAE's biggest property developer by market capitalisation, with a value of Dh20.92bn at close on Wednesday.
Revenue from the company's development management business doubled to Dh1.29bn on the same quarter last year, and is set to expand even further following the agreement announced in late October that it will manage Dh30bn worth of Abu Dhabi government capital projects, overseeing the work of Abu Dhabi General Services Company, known as Musanada.
Aldar already manages about Dh5bn worth of government projects under a separate agreement announced last year.
Some of the new assets being taken on include the Riyadh City and Baniyas North projects, as well as schemes in the Al Ain and Al Dhafra regions that will eventually be developed into more than 25,000 land plots and villas, with associated infrastructure, for Emiratis.
The company said the higher sales in the quarter were driven by "robust demand for high-end development projects" such as its Water's Edge, Nareel Island and Mamsha schemes.
"Strong sales at our prime developments reflects sustained investor confidence in Abu Dhabi’s real estate fundamentals, which are supported by the Government’s commitment to implement its economic growth and diversification strategy. Aldar is proud to be partnering with the Abu Dhabi Government as it invests further in strategic capital projects,” Mr Al Dhiyebi said.
Net profit for the nine month period was 11 per cent lower than in the same period last year at Dh1.2bn, but revenue was 17 per cent higher at Dh5.86bn. As of the end of September, the company had Dh2.5 billion worth of free cash and a further Dh4bn of undrawn credit facilities.
"Given the company’s balance sheet strength and robust cash position, Aldar continues to actively pursue opportunities to invest in both our development pipeline and in expanding our investment portfolio," Mr Al Dhiyebi said.
Abu Dhabi's residential market is continuing to soften, but the rate of price decline is slowing and transaction levels have picked up from a lull earlier in the year when social distancing measures put a brake on activity, according to a Q3 market report by Chestertons.
Average apartment and villa prices were 4.8 per cent and 4.7 per cent lower than the same period last year, but the decline on the previous quarter slowed to just 0.6 per cent and 0.2 per cent, respectively.
“Abu Dhabi enjoyed a more active third quarter, with both sales prices and rental rates showing greater stability," Chris Hobden, head of strategic consultancy at Chestertons Mena, said.
“Covid-19’s economic impact will undoubtedly continue to weigh on rental rates short-term, with improvements in residential market performance over 2021 largely contingent on a broader economic recovery.”
Countries recognising Palestine
France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra
If you go...
Fly from Dubai or Abu Dhabi to Chiang Mai in Thailand, via Bangkok, before taking a five-hour bus ride across the Laos border to Huay Xai. The land border crossing at Huay Xai is a well-trodden route, meaning entry is swift, though travellers should be aware of visa requirements for both countries.
Flights from Dubai start at Dh4,000 return with Emirates, while Etihad flights from Abu Dhabi start at Dh2,000. Local buses can be booked in Chiang Mai from around Dh50
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
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FIXTURES
Thu Mar 15 – West Indies v Afghanistan, UAE v Scotland
Fri Mar 16 – Ireland v Zimbabwe
Sun Mar 18 – Ireland v Scotland
Mon Mar 19 – West Indies v Zimbabwe
Tue Mar 20 – UAE v Afghanistan
Wed Mar 21 – West Indies v Scotland
Thu Mar 22 – UAE v Zimbabwe
Fri Mar 23 – Ireland v Afghanistan
The top two teams qualify for the World Cup
Classification matches
The top-placed side out of Papua New Guinea, Hong Kong or Nepal will be granted one-day international status. UAE and Scotland have already won ODI status, having qualified for the Super Six.
Thu Mar 15 – Netherlands v Hong Kong, PNG v Nepal
Sat Mar 17 – 7th-8th place playoff, 9th-10th place playoff
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
War 2
Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
