Property

Property stocks up as UAE markets open

UAE stocks inch higher, tracking the performance of global markets over the weekend, amid hopes that US policymakers will introduce stimulus measures to help boost the US's economy.

Hadeel al Sayegh

September 10, 2012

  • English
  • Arabic

UAE property stocks rose at the open on Sunday, boosted by heightened euphoria as global markets made decent strides over the weekend, amid speculation that the US Federal Reserve may introduce stimulus measures to strengthen the world's largest economy.

Aldar Properties, the developer behind Yas Island, advanced 1.6 per cent to Dh1.24 on the Abu Dhabi Securities Exchange. Sorouh Real Estate, the developer behind Reem Island's Sun & Sky Towers, surged 3.5 per cent to Dh1.16. The Abu Dhabi Securities Exchange General Index was up 0.2 per cent to 2,567.79 points.

Investors this weekend were betting that US policymakers may act on weak payroll data for the month of August to help ease the country's economy at a meeting to be held on Wednesday and Thursday.

The Standard & Poor's 500 Index gained 0.4 per cent to 1,437.92 points. Gold rallied two per cent to US$1,740.50. Crude oil traded in New York advanced 0.9 per cent to $96.42. The Saudi Tadawul All-Share Index added 0.7 per cent to 7,105.04 on Saturday.

"If there is more stimulus there will be more liquidity in market and investors will seek high risk investments," said Tariq Qaqish, the deputy head of asset management at Al Mal Capital in Dubai.

Emaar Properties, the developer behind the world's tallest skyscraper, gained 1.2 per cent Dh3.38 in Dubai. Arabtec Holding, the region's biggest contractor, added 0.9 per cent to 87 fils a share. The Dubai Financial Market General Index rose 0.7 per cent to 1,566.91 points.

Elsewhere in the region, Kuwait's measure added 0.1 per cent to 5,918.94 points. Bahrain's index was little changed, up 0.08 per cent, to 1073.37 points. Oman's MSM 30 Index added 0.3 per cent to 5,578.92 points. Qatar's QE Index added 0.2 per cent to 8,467.20 points.

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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  • Decide on a financial goal that is important to you and put your savings to work for you.
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