Latest news with #FaisalFalaknaz
Time of India
2 days ago
- Business
- Time of India
Aldar Properties posts 24% rise in profit in H1 2025
Abu Dhabi 's largest developer Aldar Properties reported a 24% jump in first-half profit on Tuesday, driven by a record development backlog and surging international demand - led by Chinese buyers. Aldar, the builder behind Ferrari World and lavish island properties in Abu Dhabi, made a net profit of 4.1 billion UAE dirhams ($1.12 billion) in the half ended June 30, as the group's development sales grew 31% to 18.3 billion dirhams. The growth in sales was driven by "a growing stream of international buyers" in the United Arab Emirates, with Chinese investors at the forefront, Chief Financial and Sustainability Officer Faisal Falaknaz told reporters. Sales to Chinese buyers hit 1.7 billion dirhams in the first half of 2025, already exceeding the 1.5 billion dirhams recorded for all of 2024, Falaknaz said. The UAE's real estate market continues to build momentum, drawing interest from institutional investors and private equity firms alike as they seek stable returns and the Gulf's low taxes, political stability and luxury properties draw investors from countries like China and Russia. International buyers and expats made up 84% of Aldar's UAE sales in the first half of 2025, up from 78% in 2024 and 66% in 2023. The firm, which recently acquired developers in Egypt and the UK, said it has no plans for further international expansion and is focusing instead on its domestic operations. "The UAE, Abu Dhabi, Dubai, Ras Al Khaimah will continue to be the primary focus going forward," Falaknaz said. Aldar launched five new projects in the Emirates in the first half. Aldar's development backlog rose to 62.3 billion dirham by the end of June, 53.4 billion of which is in the UAE.
The National
3 days ago
- Business
- The National
Aldar's affordable housing portfolio a 'top priority' amid growing UAE population
Aldar Properties, Abu Dhabi's biggest listed developer, will continue to ensure more affordable housing options to cater to a growing population in the UAE, its chief finance and sustainability officer has said. The affordable segment, alongside its industrial and logistics portfolio, is a 'top priority' for the company's recurring investments, Faisal Falaknaz told The National during a conference call after the company released its second-quarter results on Tuesday. 'That is one of the top asset classes that we are focused on growing today in terms of our capital allocation priority … there's a lot of pent-up demand for more affordable offerings in Abu Dhabi and Dubai,' Mr Falaknaz said. 'We have a lot happening in the pipeline and, in due course, we'll be announcing those.' Aldar reported a 25 per cent annual jump in its second-quarter net profit, underpinned by higher sales and a strong UAE economy. Net profit in the three months ended June rose to Dh2.2 billion ($599 million), the company said on Tuesday in a filing to the Abu Dhabi Securities Exchange, where its shares are traded. Revenue for the quarter leapt 46 per cent year-on-year to Dh7.7 billion, while earnings before interest, taxes, depreciation and amortisation, a key metric of profitability, climbed 39 per cent to Dh2.8 billion. For the first half of 2025, net profit surged 24 per cent annually to Dh4.1 billion. Revenue leapt 42 per cent to Dh15.5 billion, while Ebitda increased 38 per cent to Dh5.3 billion. Aldar said total sales in the second quarter rose 32 per cent annually to Dh9 billion, while first-half sales grew 35 per cent to Dh17.5 billion. Aldar's performance through the first six months of the year comes 'against a backdrop of positive macroeconomic fundamentals, underpinned by the UAE's strong fiscal position and sustained investment across key sectors', said Mohamed Al Mubarak, chairman of Aldar. Furthermore, Aldar currently has no plans to raise more capital in the near future, said Mr Falaknaz. The company has a 'very strong' balance sheet with about Dh30 billion in liquidity and is not looking to expand into other overseas markets outside Egypt and the UK, he said. Real estate remains one of the key pillars of UAE's economy, proving its resilience after strongly bouncing back from the dip brought about by the pandemic. Government measures such as residency permits for retired and remote workers and expansion of the 10-year golden visa programme have boosted foreign investment flows into the Emirates' property market over the past few years. The robust momentum in the UAE's economy − the Arab world's second largest − driven by the government's diversification efforts, have also support real estate market activity. Also, millionaire investors are increasingly looking towards Abu Dhabi real estate. The UAE capital is home to the highest number of luxury properties on sale in the country, with 352 homes for sale valued above $1 million, a recent report by developer Bloom Holding found. Last week, Aldar announced that it sold an eight-bedroom ultra-luxury mansion for Dh400 million, which it claimed was the most expensive home ever sold in the UAE capital. 'Our development business recorded high demand across existing inventory and launches … our focus remains on delivering our substantial develop-to-hold pipeline, while maintaining a steady pace of residential launches aligned to market demand,' said Talal Al Dhiyebi, group chief executive of Aldar.
Arabian Post
19-07-2025
- Business
- Arabian Post
UAE Clarifies Tax Depreciation Rules on Fair‑Valued Properties
The UAE Ministry of Finance has introduced Ministerial Decision No. 173 of 2025, establishing clear rules for applying depreciation adjustments to investment properties held at fair value under the corporate tax regime. The decision allows businesses that choose the realisation basis to deduct tax depreciation, addressing a long-standing ambiguity in the treatment of such assets. Under the new rules, eligible taxpayers may deduct whichever is lower: the tax written-down value of the property, or 4 per cent of the property's original cost for each 12-month tax period. In cases where the tax period differs from a full year, the deduction is prorated accordingly. This provision applies to properties held both before and after the introduction of corporate tax, beginning with tax periods from 1 January 2025. The decision requires taxpayers to make an irrevocable election for the realisation basis in their first tax period starting on or after 1 January 2025 in which they hold an investment property; once selected, the choice applies to all future such properties. To accommodate those yet to make the election, the Ministry has granted an exceptional opt-in window enabling taxpayers to secure these depreciation benefits. ADVERTISEMENT Tax practitioners describe the move as enhancing fairness and aligning the UAE with international best practices. It establishes parity between owners of properties under historical cost accounting—already entitled to depreciation—and those adopting fair value accounting. According to the official announcement, the decision offers comprehensive guidance on various scenarios, including transfers between related and unrelated parties, development projects, and claw-back situations. This ensures clarity in calculating tax obligations and supports accurate return forecasts from investment assets. Industry reactions underline the practical benefits and strategic implications of the decision. Aldar Properties, Abu Dhabi's leading listed developer, welcomed the changes. Faisal Falaknaz, Group Chief Financial and Sustainability Officer, described the measure as a 'progressive and well-calibrated step' that affirms equity and supports long-term capital planning under the corporate tax law. He added that the decision will reinforce investor confidence and enhance the UAE's competitiveness as a global real estate destination. Aldar's investment arm holds a property portfolio valued at Dh25.8 billion as of 31 December 2024, and this clarification could affect similar entities across the sector. Financial and tax advisory firms emphasised the immediate cash flow advantages from the depreciation allowance. Anurag Chaturvedi, CEO of Andersen UAE, noted that the absence of depreciation claims on fair-valued properties previously led to higher taxable profits and increased tax liabilities. Now, with the new decision, firms opting for the realisation basis may reduce their taxable income by as much as 4 per cent of the original purchase cost per year. Thomas Vanhee, founding partner of Aurifer, described the decision as harmonising tax treatment with common economic lifespans of properties. He explained that businesses using fair value accounting now gain access to depreciation benefits comparable to those using historical cost without requiring an asset sale. Industry analysts have drawn attention to important caveats. Businesses should note that once they elect the realisation basis, they cannot reverse the decision. Moreover, property disposals or transfers—especially within corporate groups—could trigger claw-back provisions, meaning previously claimed deductions might be recouped by tax authorities. Gaurav Keswani, managing director of JSB in Dubai, urged companies to exercise caution, emphasising the importance of long-term strategic planning. He warned that misjudging the choice between realisation and fair value methods could lead to unintended tax liabilities. The backdrop to the decision lies in the UAE's broader roll-out of federal corporate taxation. Introduced on 1 June 2023, the regime charges a 9 per cent rate on profits exceeding Dh375,000, with a threshold of Dh1 million in annual turnover for applicability. The depreciation clarification forms part of the government's continued efforts to refine and operationalise the tax framework for transparent business operations. Financial experts are awaiting further interpretative guidance from the Ministry of Finance and the Federal Tax Authority. This guidance is expected to cover nuances in depreciation calculations, accounting treatment, claw-back events, and interactions with wider tax provisions.
Gulf Business
18-07-2025
- Business
- 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
18-07-2025
- Business
- 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.
