A group of Saudi Arabian lenders has rejected an invitation from Ahmad Hamad Al Gosaibi & Brothers (AHAB) to attend a meeting next month to discuss their claims on US$5.9 billion of debt.
“The banks have no interest in attending the meeting proposed,” according to a letter to Al Gosaibi from a law firm representing the unnamed Saudi lenders and seen by Bloomberg News. The letter, dated April 3, did not give a reason why the banks do not want to attend.
Al Gosaibi and billionaire Maan Al Sanea’s Saad Group missed payments on at least $15.7bn of debt in 2009 in the Middle East’s biggest default, as the global financial crisis froze credit markets and asset prices slumped. The two family holding companies, which are related by marital ties, have been locked in legal disputes ever since.
More than 70 local, regional and international creditors received letters from Al Gosaibi last month inviting them to a meeting on May 7 in Dubai.
The company, which operates in industries from construction to finance, plans to propose a comprehensive settlement on about 22bn riyals (Dh21.54bn) of claims from lenders for unpaid loans, according to Al Gosaibi estimates.
Saudi banks “expect immediate and full payment of all their claims against AHAB, and reserve all their rights to take all appropriate actions to enforce against such claims,” they said in the April 3 letter. Banks rejected Al Gosaibi’s original debt restructuring proposal four years ago.
Units of Al Gosaibi and Saad borrowed from more than 80 regional and international banks to finance expansion into real estate and investments in the kingdom and regionally. One-third of the debt is owed to Saudi banks including Al-Rajhi Bank and National Commercial Bank, a third to other Middle Eastern lenders and the rest to global banks, Simon Charlton, Al Gosaibi’s chief restructuring officer, said in an interview in Dubai on March 25.
Mohammed Al Yami, a spokesman for Al-Rajhi, and an official from NCB, who asked not to be named due to company policy, declined to comment when contacted by Bloomberg News.
Al Gosaibi’s restructuring attempt comes amid a recovery in the Saudi banking industry, which is benefiting from government plans to invest more than $500bn developing infrastructure and industry to boost job creation. Economic growth in the kingdom is forecast at 4.4 per cent in 2014, up from 3.6 per cent last year, data show.
Al Gosaibi “will continue to work toward a comprehensive proposal and settlement and hopes to persuade the Saudi banks directly, and through the Saudi legal system, that they should join this process,” Mr Charlton said. “Saudi tribunals have accepted international claims that predate the Saudi banks’ claims, so it is AHAB’s understanding that the Saudi authorities are unlikely to endorse a settlement that is not a global settlement.”
Mr Charlton, the former head of Deloitte’s forensic services in the Middle East, joined Al Gosaibi last June to help the company restructure its operations, along with Ben Jones, also from Deloitte, who was hired as chief financial officer.
Al Gosaibi “and its advisers have and continue to receive positive responses from a number of banks that are very interested in reaching a resolution,” Mr Charlton said. “After nearly five years, most financial institutions realise a comprehensive settlement is in the best interest of everyone involved.”
Killing of Qassem Suleimani
The drill
Recharge as needed, says Mat Dryden: “We try to make it a rule that every two to three months, even if it’s for four days, we get away, get some time together, recharge, refresh.” The couple take an hour a day to check into their businesses and that’s it.
Stick to the schedule, says Mike Addo: “We have an entire wall known as ‘The Lab,’ covered with colour-coded Post-it notes dedicated to our joint weekly planner, content board, marketing strategy, trends, ideas and upcoming meetings.”
Be a team, suggests Addo: “When training together, you have to trust in each other’s abilities. Otherwise working out together very quickly becomes one person training the other.”
Pull your weight, says Thuymi Do: “To do what we do, there definitely can be no lazy member of the team.”
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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The UN General Assembly President in quotes:
YEMEN: “The developments we have seen are promising. We really hope that the parties are going to respect the agreed ceasefire. I think that the sense of really having the political will to have a peace process is vital. There is a little bit of hope and the role that the UN has played is very important.”
PALESTINE: “There is no easy fix. We need to find the political will and comply with the resolutions that we have agreed upon.”
OMAN: “It is a very important country in our system. They have a very important role to play in terms of the balance and peace process of that particular part of the world, in that their position is neutral. That is why it is very important to have a dialogue with the Omani authorities.”
REFORM OF THE SECURITY COUNCIL: “This is complicated and it requires time. It is dependent on the effort that members want to put into the process. It is a process that has been going on for 25 years. That process is slow but the issue is huge. I really hope we will see some progress during my tenure.”
