New UAE tax rule; Dubai announces stormwater infrastructure; UAE approves AI law plan; Mall of the Emirates set for $1.3bn upgrade – 10 things you missed this week
The UAE has announced updated tax rules for businesses in the country. With changing instructions on audited financial statements, businesses are advised to keep track of the latest requirements.
Elsewhere in the country a plan has been approved to use AI to form new laws, major stormwater infrastructure projects are underway, and Trump tariffs in the US are impacting real estate investments in Dubai.
Catch up with 10 of the biggest stories this week, as selected by Arabian Business editors.
UAE announces new tax rule
The UAE has announced new tax rules for businesses.
As part of its continued efforts to enhance transparency and ensure robust financial reporting standards for businesses operating in the UAE under the Corporate Tax regime, the Ministry of Finance has issued an updated Ministerial Decision clarifying the requirements for the preparation and maintenance of audited financial statements in accordance with Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses ('Corporate Tax Law').
The updated decision sets out clear requirements for tax groups to prepare audited financial statements. All tax groups will be required to prepare audited special purpose aggregated financial statements. However, to mitigate the compliance burden on tax groups and in line with the UAE's commitment as a business-friendly jurisdiction, the underlying members of the tax group will not be required to prepare audited stand-alone financial statements.
VOX Cinemas launches new IMAX experience in Dubai with premium seating in world's first
VOX Cinemas, operated by Majid Al Futtaim, has unveiled what they describe as the world's most advanced IMAX theatre at Mall of the Emirates, featuring the first-ever integration of Ōma Cinema® premium pod seating within an IMAX auditorium.
The new cinema boasts IMAX's 4K Laser Projection System with proprietary optical engine technology, delivering high-resolution images with enhanced brightness and contrast.
The Next-Generation IMAX Precision Sound system distributes audio evenly throughout the custom-built auditorium, the company said in a statement.
Dubai Municipality has awarded contracts worth AED1.439 billion for four major projects to develop, rehabilitate and expand the emirate's stormwater drainage network, officials announced this week.
The contracts form part of the 'Tasreef' project, described as Dubai's largest unified stormwater collection system and the most operationally efficient in the region.
These infrastructure developments align with directives from Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to develop strategic and future-ready infrastructure, the Emirates News Agency (WAM) said in a statement.
Trump tariffs result in increased demand for UAE property from foreign investors, here's what you need to know
The real estate players in the UAE could be thanking the US President secretly as the Gulf country's property sector is projected to see a windfall gain in the coming weeks and months, with Donald Trump's maverick policy and tariff announcements sending the US dollar to a tailspin, and the consequent fall in value of dirham, triggering a surge in overseas investments in the sector, especially from Europe, Russia and India.
The Gulf country's rising currency value proposition, coinciding with the non-domicile tax law changes in the UK, is also expected to lead to a spike in UK-based wealthy investors' high-end property acquisitions in Dubai and other parts of the UAE.
With the UAE dirham pegged to the US dollar, the depreciation of the American currency leads to a fall in its value as well.
Dubai real estate: Is it the right time to invest in the property market? Experts weigh in
Amid fresh US tariffs and rising global market uncertainty, Dubai's property sector continues to attract international investors with strong rental returns, a stable currency, and steady capital growth.
Record-breaking sales and double-digit price increases reflect sustained demand, led by global buyers, continue to boost the emirate as one of the world's most attractive real estate markets.
Lewis Allsopp, Chairman of Allsopp & Allsopp, said: 'Yes, now is a great opportunity to invest in Dubai real estate. The track record speaks for itself, with those who've invested previously experiencing consistent growth and strong returns. With industry professionals actively investing and the UAE's economy thriving across various sectors, Dubai continues to offer attractive opportunities for long-term ROI. Dubai is a standout choice for investors seeking robust returns in a dynamic global market'.
UAE approves plan to develop new laws with AI
The UAE will develop and monitor laws in the country using a new artificial intelligence system. Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, announced the new legislative process following a meeting of the UAE Cabinet at Qasr Al Watan, Abu Dhabi.
During the meeting, the UAE Cabinet approved the launch of the first integrated regulatory intelligence ecosystem within the UAE Government. This new legislation and laws development system, which is the first of its kind globally, is based on the most advanced artificial intelligence approaches and solutions, marking a global first in smart governance.
The ecosystem introduces a proactive approach to legislative planning, enabling the government to stay ahead of rapid changes in global geopolitical, economic, social, and technological landscapes.
Real estate tokenisation: Dubai predicted to see $16bn market for digital fractional ownership
Dubai's landmark initiative to kick off the tokenised property title deeds is projected to create a massive over $16 billion digital fractional ownership market in the emirate in the next few years, accounting for a sizeable share of property transactions in the emirate, sector experts told Arabian Business.
The move is also expected to further boost overseas investments in the city's real estate sector, especially the residential segment, with tokenised online real estate platforms attracting international investors in large numbers, especially from Europe and Asia, bringing in top-dollar investments, they said.
The Dubai Land Department (DLD) announced the launch of a pilot project to tokenise property title deeds in March this year, becoming the first land registry in the Middle East to implement blockchain-based property tokenisation.
Dubai and Abu Dhabi are the best cities in the world for high-net-worth individuals to relocate to, according to Savills research.
The trifecta of a fluid geopolitical and economic environment; changing government policies, taxes and incentives; and quality-of-life factors, is increasingly influencing where high net worth individuals (HNWIs) and footloose companies choose to locate, said Savills.
The real estate consultancy launched the Savills Dynamic Wealth Indices to identify the cities that are performing well at attracting and developing wealth and investment from individuals and businesses.
Dubai real estate sales hit $38.7bn in Q1; biggest neighbourhood price increases and best ROI revealed
The Dubai real estate sector saw sales of more than AED142bn ($38.7bn) in Q1, according to Bayut statistical data analysis.
The data points to a steady increase in property prices across key areas, driven by strong demand, consistent inventory supply, and Dubai's appeal to high-net-worth individuals drawn to its robust economy and favourable tax environment.
Bayut's insights have shown price hikes for both apartments and villas, with villa prices in DAMAC Hills recording the highest increases of up to 21 per cent. For those seeking budget-friendly options, areas such as Dubai Residence Complex, Dubai Silicon Oasis, DAMAC Hills 2 and Dubailand have been prominent choices. Mid-tier buyers have leaned towards communities such as Jumeirah Village Circle, Business Bay, Al Furjan and Reem. On the luxury front, Dubai Marina, Downtown, Arabian Ranches and DAMAC Hills have continued to attract premium investors.
Dubai's Majid Al Futtaim announces major $1.3bn Mall of the Emirates upgrade
Majid Al Futtaim has announced a AED5 billion ($1.3 billion) investment to transform Mall of the Emirates into what the company calls a 'next-generation lifestyle destination'.
The project, coinciding with the mall's 20th anniversary, aims to expand retail space and introduce new wellness, cultural and dining facilities. The transformation will add 20,000 square metres of retail space, accommodating 100 new stores across luxury, fashion and lifestyle categories. AED1.1 billion has already been allocated to enhancements currently in progress.
'Two decades ago, Mall of the Emirates set a new benchmark for retail and entertainment in the region. Today, we're building on that legacy with a bold investment that redefines what a mall can be. This transformation goes beyond physical expansion — it's about creating new ways for people to connect, unwind, and be inspired, all in one destination,' Khalifa Bin Braik, Chief Executive Officer of Majid Al Futtaim Asset Management said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Etihad
3 hours ago
- Al Etihad
Wall Street ticks higher as tech boost offsets economic worries
4 June 2025 19:00 (REUTERS)US stocks edged higher on Wednesday, as strength in technology shares offset declines driven by weak economic data that deepened concerns about the impact of the Trump administration's erratic trade US services sector contracted for the first time in nearly a year in May, while businesses paid higher input prices, a reminder that the economy was still at risk of experiencing a period of very slow growth and high ADP National Employment Report showed US private employers added the fewest number of workers in more than two years in May. Investors are awaiting Friday's nonfarm-payrolls data for more signs on how trade uncertainty is affecting the US labour doubled tariffs on imported steel and aluminum to 50% on Wednesday, the same day by which President Donald Trump wanted trading partners to make their best offers to avoid other punishing import levies from taking effect in early focus is squarely on tariff negotiations between Washington and its trading partners, with Trump and Chinese leader Xi Jinping expected to speak sometime this week as tensions simmer between the world's two biggest was the best month for the S&P 500 index and the tech-heavy Nasdaq since November 2023, thanks to a softening of Trump's harsh trade stance and upbeat earnings S&P 500 remains less than 3% away from its record highs touched in joined a slew of other brokerages in raising its year-end price target for the S&P 500, pointing to easing trade uncertainty and expectations of normalised earnings growth in 10:36 a.m. ET, the Dow Jones Industrial Average rose 88.09 points, or 0.20%, to 42,605.07, the S&P 500 gained 17.36 points, or 0.29%, to 5,987.73 and the Nasdaq Composite gained 58.41 points, or 0.31%, to 19, of the 11 major S&P 500 sub-sectors rose, led by communication services with a 1.2% rise, while information technology stocks gained 0.4%.Shares of Hewlett Packard Enterprise rose 1.1% as demand for the company's artificial-intelligence servers and hybrid cloud segment helped it beat estimates for second-quarter revenue and rose 2.2% after the chip manufacturer announced plans to increase its investments to $16 dropped 3.8%. The electric-vehicle maker's sales dropped for the fifth straight month in big European Fargo shares rose 1.2% after the U.S. Federal Reserve removed a $1.95 trillion asset cap imposed in 2018 following years of of cybersecurity firm CrowdStrike slumped 4.7% after it forecast quarterly revenue below Tree fell 10.2% after the discount store operator forecast second-quarter adjusted profit would be as much as 50% lower than a year ago due to tariff-driven issues outnumbered decliners by a 2.02-to-1 ratio on the NYSE and by a 1.41-to-1 ratio on the Nasdaq. The S&P 500 posted 19 new 52-week highs and no new lows while the Nasdaq Composite recorded 63 new highs and 23 new lows.
Zawya
4 hours ago
- Zawya
US service sector unexpectedly contracts in May; inflation heats up
The U.S. services sector contracted for the first time in nearly a year in May while businesses paid higher prices for inputs, a reminder that the economy remained in danger of experiencing a period of very slow growth and high inflation. The Institute for Supply Management (ISM) said on Wednesday its nonmanufacturing purchasing managers index (PMI) dropped to 49.9 last month, the first decline below the 50 mark and lowest reading since June 2024, from 51.6 in April. Economists polled by Reuters had forecast the services PMI rising to 52.0 following some easing in trade tensions between the United States and China. A PMI reading below 50 indicates contraction in the services sector, which accounts for more than two-thirds of the economy. The ISM associates a PMI reading above 48.6 over time with growth in the overall economy. The ISM on Monday reported that manufacturing contracted for a third straight month in May, with suppliers taking the longest time in nearly three years to deliver inputs amid tariffs. President Donald Trump's import duties, which at times have been implemented in a disorderly manner, have sowed confusion among businesses. Economists say the tariff uncertainty was making it difficult for businesses to plan ahead. Businesses from retailers, airlines to motor vehicle manufacturers have either withdrawn or refrained from giving financial guidance for 2025. While economists do not expect a recession this year, stagflation is on the radar of many. The ISM survey's new orders measure dropped to 46.4 from 52.3 in April, likely with the ebbing of the boost from front-running related to tariffs. Services sector customers viewed their inventory as too high in relation to business requirements, which does not bode well for activity in the near term. Suppliers' delivery performance continued to worsen. This, together with lengthening delivery times at factories, points to strained supply chains that could drive inflation higher through shortages. Businesses are also seeking to pass on tariffs, which are a tax, to consumers. The ISM survey's supplier deliveries index for the services sector rose to 52.5 from 51.3 in April. A reading above 50 indicates slower deliveries. A lengthening in suppliers' delivery times is normally associated with a strong economy. Delivery times are, however, likely getting longer because of bottlenecks in the supply chains. That was reinforced by a surge in the survey's measure of prices paid for services inputs to 68.7, the highest level since November 2022, from 65.1 in April. Most economists anticipate the tariff hit to inflation and employment could become evident by summer in the so-called hard economic data. Services sector employment picked up. The survey's measure of services employment rose to 50.7 from 49.0 in April. The government is expected to report on Friday that nonfarm payrolls increased by 130,000 jobs in May after advancing by 177,000 in April, a Reuters survey of economists showed. The unemployment rate is forecast to hold steady at 4.2%, with greater risks of a rise to 4.3%. (Reporting By Lucia Mutikani; Editing by Chizu Nomiyama )
The National
4 hours ago
- The National
South Korea's Lee Jae-myung is the right man to deal with Donald Trump
South Koreans went to the polls to choose a new president on Tuesday, and they handed Lee Jae-myung of the Democratic Party a clear victory with 49.4 per cent of the vote. But even before Mr Lee was sworn in at the country's Parliament the following morning, he appeared to be surrounded by a whirlwind of questions, accusations and warnings. 'The first task facing South Korea's next leader: Handling Trump' was one headline, referring not just to the 25 per cent tariffs Seoul may have to deal with from Washington, but also Mr Lee's willingness to improve relations with China and North Korea, a shift from the very pro-US and Japan outlook of former president Yoon Suk-yeol, who had plunged the country into chaos by briefly declaring martial law last December. It may indeed be quite the challenge if Mr Trump listens to one self-appointed adviser, the hardcore Maga activist Laura Loomer, who posted on X: 'RIP South Korea. The communists have taken over and won the presidential election today. This is terrible.' Mr Lee faces a country with deep political divides, and the two other candidates, both on the right, won a combined total of just over 50 per cent. So even though the election was widely seen as being driven by anger at Mr Yoon's self-implosion – for which he was impeached, arrested and driven from office – which hindered the candidacy of Kim Moon-soo, who is from the same People Power Party as Mr Yoon, 'the conservative tally outweighed Lee's support even after the debacle of Yoon's martial law decree', as one analyst put it. Not enough young people support Mr Lee, say some. He faces legal charges – which he says are politically motivated – although they may be suspended until after his five-year term as President ends. Others accuse him of being a showy populist who has used fiery and – they would say – irresponsible rhetoric about US troops stationed in the country. How will he cope with an economy that is 'sputtering'? Oh, and to top it all, he apparently doesn't even have a proper place to work, since Mr Yoon moved the presidential office out of the Blue House, the official residence, to a military compound that none of the candidates said they liked. There are other ways to look at Mr Lee's victory, of course. The 6 per cent margin of his win over Mr Kim was more than emphatic enough in a three-way race, and with his Democratic Alliance partners holding 173 out of the 300 parliamentary seats, there should be none of the logjam between the executive and the legislature that led Mr Yoon to make such a rash (and career-ending) move. Mr Lee has called for 'national unity' and said on election night that he wanted South Korea to be a country 'where we live together with mutual recognition and co-operation rather than hatred and loathing'. All of this should reassure investors, while the new President has a $25 billion stimulus package up his sleeve, plans for labour and corporate governance reforms, and wants to go all-out on stimulating domestic demand. As for Mr Trump, despite Ms Loomer's wild characterisation of Mr Lee as a 'communist' – the adjectives 'liberal' and 'centrist' are more commonly preferred – the two leaders may be more likely to hit it off than some have suggested. They are both populists: Mr Lee made a point of being filmed when he climbed over barriers to enter the National Assembly to vote against Mr Yoon's imposition of martial law last December, and he has been referred to as 'Korea's Bernie Sanders', but also as 'Korea's Trump', for his candid speech and ability to connect with the grassroots. On North Korea, if Mr Trump enters negotiations with Pyongyang again, as he did during his first term, the two could be very in tune. In fact, this February Mr Lee's party sent a letter to the Nobel Committee urging them to nominate Mr Trump for this year's peace prize in the hope that he 'continue his peace-building efforts during his second term', as a party official put it. That was a canny move that will surely have been brought to Mr Trump's attention. Both men have survived assassination attempts. Mr Lee was stabbed in the neck in January 2024 and was airlifted to hospital. Just like Mr Trump, Mr Lee drew inspiration from his survival, saying: 'Since my life was saved by our people, I will dedicate the rest of it solely to serving them.' And when it comes to trade discussions with the US, not only has Mr Lee said it is 'the most important issue' for him, after 'overcoming people's hardships and recovering from the current turmoil', but he seems prepared both to stand his ground and to show the US President whatever deference is required. 'Diplomacy between independent countries can be mutually beneficial,' Mr Lee said on Korean radio last Monday. 'We have plenty of cards to play. There's room to give and take, and that's what we must do well.' Asked how he would react to tough words from Mr Trump, Mr Lee was ready. 'That's just the way powerful countries operate,' he said. 'Any humiliation or pressure is not about me personally – it's about the entire nation. If it's necessary, I'll crawl under his legs. What's the big deal?' So for sure, Mr Lee faces challenges. But with a clear mandate, allies dominating Parliament, and being seen as the person bringing back stability after the tumult of the past six months, he has a lot going for him too. Navigating better relations with China while maintaining the treaty alliance with the US won't perhaps be easy, but he won't be the only leader having to thread that needle. Above all, his pragmatism may end up being his greatest strength. Take his concluding words about his possible approach to Mr Trump: 'An hour of the president's time is worth 52 million hours of the Korean people's time,' he said. 'If the president has to bend briefly so that 52 million people can stand tall, then that's what must be done.'
