ABU DHABI // Residents of illegally subdivided villas in Abu Dhabi Gate City have stayed put, despite the municipality's threat to tear down walls between flats as soon as next month.
More than 40 families originally lived in the six-building compound on the waterfront and many say they have not been refunded the rent and deposits paid in advance.
The developer, Nevada Building and Construction, has promised payment but several residents said they had been unable to contact the landlord or the property owner.
The villas were deemed illegal by Abu Dhabi Municipality in February. Nevada appealed against the decision in court and lost the case in March, but was allowed to file another appeal.
A decision is expected by the end of next month.
But even as residents struggle to find new accommodation, Nevada continues to lease out flats in the buildings.
One resident, Nabeel el Yakobi, said more than 10 families had moved out of the compound since the municipality first sent a demolition crew there earlier this year, but only two had received cheques.
Another resident, Joel Ericson, said he had received only a part of the rent he paid in advance.
Jihad Kazzaz, a spokesman for the developer, said only two flats had been leased out since March, but the tenants were paying on a monthly basis and were told they might have to move out by the end of next month.
"Hopefully we will win the court case and no one will have to move out," said Mr Kazzaz, who added he lives at the complex.
"At the end of June, maybe the tenants can stay one week or one year. We don't know, but we know there are many cases that are the same as ours that got approval from the municipality."
A municipality official said leasing out the flats while the developer awaited a court decision was unethical but not illegal.
"They [the developers] should inform the tenants that these houses are dangerous for the citizens who are staying there," the official said.
The villas are part of a two-phase development project that includes nearly a dozen buildings. Each three-storey villa contains seven flats that cost between Dh85,000 (US$23,100) and Dh180,000 a year. All of the tenants have moved in since December.
Removing the partitions is part of the municipality's clampdown on buildings with illegal subdivisions, which it says can cause safety hazards and are in violation of the city's building codes.
Nevada representatives have insisted the partitions are legal and were approved by the municipality before residents moved in.
Electricity to the compound has been shut off at least once a month since February and residents formed a human barricade in late March to block the utility company from cutting the power.
Mr Kazzaz said the head of Nevada, Mohammed Mandoor, had been away in Egypt and was the only person authorised to sign cheques.
He said Mr Mandoor had lost Dh2.5 million as a result of the municipality's decision and was issuing postdated cheques only.
"It's logical," Mr Kazzaz said. "We don't have the money to pay the people back but we are doing what we can. All the people, they will get their money back."
But residents are still worried they may end up out of pocket.
Kobus Grobler moved out in late March, the last time a municipal demolition crew was sent to the compound.
Mr Grobler said he was initially told he would receive the Dh30,000 remaining on his lease in addition to a deposit, but this month Nevada told him he would only receive Dh18,000.
"I tried to phone Mr Mandoor but like usual he is not answering the phone," he said.
"Going to their office is a waste of time as his door is always locked, and his staff always say he is not there."
Mr Kazzaz said tenants who wished to move out would be issued cheques next month or in July.
He said if the court ruled in Nevada's favour, the company would pay one month's rent for residents.
jthomas@thenational.ae
Who has lived at The Bishops Avenue?
- George Sainsbury of the supermarket dynasty, sugar magnate William Park Lyle and actress Dame Gracie Fields were residents in the 1930s when the street was only known as ‘Millionaires’ Row’.
- Then came the international super rich, including the last king of Greece, Constantine II, the Sultan of Brunei and Indian steel magnate Lakshmi Mittal who was at one point ranked the third richest person in the world.
- Turkish tycoon Halis Torprak sold his mansion for £50m in 2008 after spending just two days there. The House of Saud sold 10 properties on the road in 2013 for almost £80m.
- Other residents have included Iraqi businessman Nemir Kirdar, singer Ariana Grande, holiday camp impresario Sir Billy Butlin, businessman Asil Nadir, Paul McCartney’s former wife Heather Mills.
Hunting park to luxury living
- Land was originally the Bishop of London's hunting park, hence the name
- The road was laid out in the mid 19th Century, meandering through woodland and farmland
- Its earliest houses at the turn of the 20th Century were substantial detached properties with extensive grounds
The design
The protective shell is covered in solar panels to make use of light and produce energy. This will drastically reduce energy loss.
More than 80 per cent of the energy consumed by the French pavilion will be produced by the sun.
The architecture will control light sources to provide a highly insulated and airtight building.
The forecourt is protected from the sun and the plants will refresh the inner spaces.
A micro water treatment plant will recycle used water to supply the irrigation for the plants and to flush the toilets. This will reduce the pavilion’s need for fresh water by 30 per cent.
Energy-saving equipment will be used for all lighting and projections.
Beyond its use for the expo, the pavilion will be easy to dismantle and reuse the material.
Some elements of the metal frame can be prefabricated in a factory.
From architects to sound technicians and construction companies, a group of experts from 10 companies have created the pavilion.
Work will begin in May; the first stone will be laid in Dubai in the second quarter of 2019.
Construction of the pavilion will take 17 months from May 2019 to September 2020.
Abu Dhabi traffic facts
Drivers in Abu Dhabi spend 10 per cent longer in congested conditions than they would on a free-flowing road
The highest volume of traffic on the roads is found between 7am and 8am on a Sunday.
Travelling before 7am on a Sunday could save up to four hours per year on a 30-minute commute.
The day was the least congestion in Abu Dhabi in 2019 was Tuesday, August 13.
The highest levels of traffic were found on Sunday, November 10.
Drivers in Abu Dhabi lost 41 hours spent in traffic jams in rush hour during 2019
In numbers
1,000 tonnes of waste collected daily:
- 800 tonnes converted into alternative fuel
- 150 tonnes to landfill
- 50 tonnes sold as scrap metal
800 tonnes of RDF replaces 500 tonnes of coal
Two conveyor lines treat more than 350,000 tonnes of waste per year
25 staff on site
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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
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World record transfers
1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m