Abu Dhabi property deals rose 10% to $26bn in 2024 on strong demand
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Al Etihad
3 days ago
- Al Etihad
Aldar welcomes new UAE tax depreciation decision as a positive step for real estate sector
18 July 2025 15:15 ABU DHABI (ALETIHAD)Aldar has welcomed the UAE Ministry of Finance's new Ministerial Decision on Depreciation Adjustments for Investment Properties held at Fair Value, calling it a positive and progressive development for the real estate sector under the UAE Corporate Tax decision, issued under Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses, allows taxpayers who elect the realisation basis to deduct tax depreciation from their taxable income on investment properties held at fair value. The depreciation amount permitted will be the lower of the tax written down value or 4% of the original cost of the property per 12-month tax period, or prorated for shorter Ministry's move ensures tax neutrality by aligning deductions with those available to businesses using historical cost accounting, thereby promoting equity across different reporting standards. The decision also clarifies the application of tax depreciation in various scenarios including property transfers between related or third parties, developments, and claw-back events. This is expected to support clearer compliance planning and improved financial foresight for Falaknaz, Group Chief Financial and Sustainability Officer at Aldar, praised the decision, saying: 'Aldar expresses its gratitude for the UAE Ministry of Finance for this progressive and well-calibrated step, which reflects a deep commitment to fairness, clarity, and international best practices in the implementation of the Corporate Tax Law. By enabling depreciation deductions for investment properties held at fair value, this decision creates parity between different accounting treatments, helping companies plan long-term capital deployment more effectively. It will also reinforce investor confidence, attract institutional capital, and enhance the UAE's standing as a transparent, competitive, and globally integrated investment destination—particularly for the real estate sector.' Aldar, which operates through two primary divisions—Aldar Development and Aldar Investment—holds a significant income-generating property portfolio across commercial, retail, residential, and logistics segments. As of 31 December 2024, Aldar Investment's portfolio had a gross asset value of Dh25.8 billion and generated Dh2.5 billion in EBITDA for the year.
Gulf Business
3 days ago
- Gulf Business
UAE issues new decision on depreciation rules for investment properties under corporate tax law
Image: WAM The UAE Read- It specifies the conditions under which depreciation will be calculated and the method for making tax adjustments, in line with the Federal Decree-Law No 47 of 2022 on the Taxation of Corporations and Businesses. Investment properties: The move is part of ongoing efforts to implement the UAE's corporate tax regime The ministry said the decision aims to ensure consistency in how taxable income is calculated for corporate tax purposes, especially in sectors where investment properties are a significant part of the balance sheet. The move is part of ongoing efforts to implement the UAE's Further guidance is expected to be released to support companies in aligning their tax reporting with the new requirements. Abu Dhabi-based property developer Aldar welcomed the update, with group chief financial and sustainability officer Faisal Falaknaz calling it a 'progressive and well-calibrated step' that promotes fairness, supports long-term capital planning, and boosts investor confidence. It's a technical change, but one that could have a big impact on how real estate firms approach tax compliance and valuation strategies in the UAE. ' Aldar expresses its gratitude for the UAE Ministry of Finance for this progressive and well-calibrated step, which reflects a deep commitment to fairness, clarity, and international best practices in the implementation of the Corporate Tax Law,' Falaknaz said. In recent news the Ministry of Finance and the Federal Tax Authority also amended the excise tax on sugar-sweetened beverages, replacing the flat rate with a tiered volumetric model that ties the tax per litre to the sugar content per 100ml. The higher the sugar content, the higher the tax, an approach aimed at promoting public health, curbing consumption of high-sugar drinks, and pushing manufacturers to reduce sugar levels in their products.
Zawya
4 days ago
- Zawya
Aldar welcomes new UAE tax depreciation decision as positive step for the real estate sector
Aldar has welcomed the UAE Ministry of Finance's new Ministerial Decision on Depreciation Adjustments for Investment Properties held at Fair Value, under Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses. The decision allows taxpayers, who elect the realization basis, to deduct tax depreciation from their taxable income for investment properties held at fair value. The tax depreciation amount will be the lower of the tax written down value or 4% of the original cost of the property for each 12-month tax period or prorated for shorter periods. This treatment ensures tax neutrality and equity with deductions available to businesses that hold investment properties on a historical cost basis. The decision also provides clarity on how tax depreciation applies in cases of property transfers (between related or third parties), developments, and claw-back scenarios—ensuring businesses have a clear view of their compliance obligations and financial planning. Faisal Falaknaz, Group Chief Financial and Sustainability Officer at Aldar, said: 'Aldar expresses its gratitude for the UAE Ministry of Finance for this progressive and well-calibrated step, which reflects a deep commitment to fairness, clarity, and international best practices in the implementation of the Corporate Tax Law. By enabling depreciation deductions for investment properties held at fair value, this decision creates parity between different accounting treatments, helping companies plan long-term capital deployment more effectively. It will also reinforce investor confidence, attract institutional capital, and enhance the UAE's standing as a transparent, competitive, and globally integrated investment destination—particularly for the real estate sector.' Aldar operates two core business divisions: Aldar Development and Aldar Investment. Aldar Investment holds a substantial portfolio of income-generating properties across key asset classes, including commercial, retail, residential, and logistics. As of 31 December 2024, the portfolio had a gross asset value of AED 25.8 billion and delivered EBITDA of AED 2.5 billion in 2024. About Aldar Aldar is the leading real estate developer, manager, and investor in Abu Dhabi, with a growing presence across the United Arab Emirates, the Middle East North Africa, and Europe. The company has two core business segments, Aldar Development and Aldar Investment. Aldar Development is a master developer of a 62 million sqm strategic landbank, creating integrated and thriving communities across Abu Dhabi, Dubai, and Ras Al Khaimah's most desirable destinations. The delivery of Aldar's developments is managed by Aldar Projects, which is also a key partner of the Abu Dhabi government in delivering housing and infrastructure projects across the UAE's capital. Internationally, Aldar Development wholly owns UK real estate developer London Square, as well as a majority stake in leading Egyptian real estate development company, SODIC. Aldar Investment houses a core asset management business comprising a portfolio of more than AED 46 billion worth of investment grade and income-generating real estate assets diversified across retail, residential, commercial, logistics, and hospitality segments. It manages four core platforms: Aldar Investment Properties, Aldar Hospitality, Aldar Education, and Aldar Estates.
