Sharjah recorded property transactions worth Dh4.6 billion ($1.25bn) in the third quarter of 2020, up 10 per cent compared to the same period last year on the back of stimulus measures implemented to support the economy in the wake of Covid-19.
The total number of transactions during the period was 14,854, according to a statement from the emirate’s Real Estate Registration Department, which was slightly below the 14,974 reported in the corresponding quarter last year.
Sharjah has rolled out a number of stimulus measures to support the economy, most notably a reduction in sales fees on properties to 2 per cent, from 4 per cent, for non-GCC nationals until March 31 next year. The government has extended exemptions on annual licence renewal fees for economic establishments and provided a 50 per cent discount on delayed fines and violations. A discount of 50 per cent on licence fees was also granted to industrial establishments, while supply fees for electricity, water and natural gas have also been cut.
“This new decision (the reduction of sales fees), along with the latest stimulus package, has led to a rapid recovery of the real estate sector," Abdul Aziz Ahmed Al Shamsi, director-general of the Sharjah Real Estate Registration Department, said.
The property market "continues to play a pivotal role in the progress and prosperity of the emirate”, he added.
Completing previous projects and launching new ones, like development projects recently accomplished in the emirate's Eastern Region, sends an important message to investors about the stability of the economic situation in Sharjah despite the pandemic, Mr Al Shamsi added.
Almost 75 per cent of the transactions completed during the quarter were residential deals, while 11 per cent were commercial, 9.9 per cent were industrial and 4.5 per cent agricultural. Investment continued to be led by GCC nationals, who were responsible for Dh3.5bn of the deals, with the remaining Dh1.1bn from other nationalities. In total, 47 different nationals invested in Sharjah property during the period.
Mortgage deals made up Dh1.9bn worth of the transactions completed during the quarter, the department said.
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What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
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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
