DUBAI // Deyaar Development says its net profits climbed 56 per cent in the third quarter, to Dh311.9 million (US$85m), compared with the same period last year, marking the second straight quarter of profits following a management shake-up in April.
The Dubai-based property developer, which has under its portfolio projects in Dubai Marina, Business Bay and Jumeirah Lakes Towers, said the quarterly performance exceeded expectations and underlined the progress made on its Dubai property projects.
Projects currently under development would be completed by 2010, the company said, adding that it was also looking to create additional joint ventures in foreign markets.
"These positive results reflect the company's solid growth strategy," said Nasser Bin Hassan al Sheikh, who is the chairman of Deyaar and also the chairman of Amlak Finance, which yesterday announced it was entering merger talks with Tamweel, another Dubai-based mortgage provider.
Third-quarter revenues for Deyaar were Dh1.01 billion, an increase of 23 per cent from the previous quarter, at Dh823.3m, and a jump of 371 per cent from the third quarter of last year.
In April, Deyaar replaced two board members in a reorganisation of its senior management after the former chief executive, Zack Shahin, was detained by police and put under investigation by Dubai authorities.
Mr Shahin, a citizen of the US, is being investigated by the Dubai Public Prosecution office for financial improprieties, according to Dubai authorities.
He was replaced by Markus Giebel as the new chief executive of Deyaar. Announcing the quarterly results, Mr Giebel said: "Deyaar's strategic move to develop larger, mixed-use communities will provide the company with the required scale to maintain its growth. Deyaar is now sharply focused on delivering the majority of its projects currently under development by 2010. We are also in discussions with some leading developers to establish local partnerships and joint ventures in key international markets, to facilitate our entry into fast-growing real estate markets, within the region and beyond."
These potential partnerships would be included in an international portfolio that already includes three projects in Lebanon.
Deyaar has singled out the emerging markets of Saudi Arabia, India, Qatar and Kazakhstan as potential sites for future projects. It also has affiliate companies in the Cayman Islands, Netherlands, Turkey and the UK, while in Sharjah, Deyaar is the developer behind the Dana Towers project.
Before the week-long Eid al Fitr holiday, shares in Deyaar traded at Dh1.61, or 46 per cent off its 52-week high of Dh2.99 a share. Like many property firms, its shares have slumped on concerns the global credit crisis might slow growth in the UAE property sector.
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What is the definition of an SME?
SMEs in the UAE are defined by the number of employees, annual turnover and sector. For example, a “small company” in the services industry has six to 50 employees with a turnover of more than Dh2 million up to Dh20m, while in the manufacturing industry the requirements are 10 to 100 employees with a turnover of more than Dh3m up to Dh50m, according to Dubai SME, an agency of the Department of Economic Development.
A “medium-sized company” can either have staff of 51 to 200 employees or 101 to 250 employees, and a turnover less than or equal to Dh200m or Dh250m, again depending on whether the business is in the trading, manufacturing or services sectors.
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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
