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Al Etihad
an hour ago
- Business
- Al Etihad
Over 1% FAB shares sold in bulk transactions
2 June 2025 11:28 A. SREENIVASA REDDY (ABU DHABI)The Abu Dhabi Securities Exchange (ADX) on Monday reported large-scale bulk transactions involving shares of First Abu Dhabi Bank (FAB), the UAE's largest bank.A total of 113.356 million shares, valued at Dh1.757 billion, were traded across 32 transactions at an average price of Dh15.5 — a slight discount compared to FAB's closing price of Dh16.1 on Friday. The number of shares traded constitutes slightly above 1% of total shares of 11.047 billion. International wire agencies reported a big secondary sale of FAB shares on Friday, quoting Citi, which is said to be the bookrunner for the deal.'The selling shareholder, whose name was not disclosed, is offering around 113 million shares at a price of Dh15.5 per share through an accelerated bookbuilding,' Reuters said, quoting a Citi reported total assets of Dh1.31 trillion as of the end of March, while its market capitalisation currently stands at Dh174 billion, according to the latest data available from information published on FAB's official website, as of March 31, 2025, shows that Mubadala Investment Company holds the largest stake at 37.9%, followed by Abu Dhabi's ruling family (18%), and other UAE entities and individuals (21.7%). Foreign ownership accounts for 22.4%, while the free float — the proportion of shares available for trading on public markets — is listed at 42%. Stock Markets Continue full coverage
Al Etihad
17 hours ago
- Business
- Al Etihad
UAE stock markets report steady gains in May despite global volatility
1 June 2025 19:12 A. SREENIVASA REDDY (ABU DHABI)The UAE equity markets closed May 2025 on a positive note, with both the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) recording gains, despite volatility in global markets, according to the monthly market report from Kamco combined market capitalisation of the two bourses rose as investors gained confidence from steady earnings, increased liquidity, and sector-specific momentum. The report highlights that both exchanges remained among the more resilient performers in the GCC during the month.'Equity markets in the GCC region remained volatile during May replicating the trend in the broader global financial markets. Almost all markets in the region witnessed gains during the month, but a 5.8% decline in the TASI (Saudi index) dragged the MSCI GCC index into the red with a decline of 2.6% during the month,' Kamco Invest ADX General Index registered a monthly gain of 1.6%. The index closed at 9,685.1 points in May, bringing its year-to-date performance for 2025 to 2.8%.According to Kamco Invest: 'Sectoral performance on the exchange was evenly split, with five out of 10 sector indices registering declines, while the remaining five recorded gains.'The overall gain in the FTSE ADX General Index was driven by advances in the Energy, Financial, Real Estate, and Utilities Indices. The Energy Index posted the steepest gain, climbing 4.4%, as two out of the four constituent companies recorded share price increases, led by a 7.7% rise in ADNOC Distribution's share price during the month. The Utilities Index followed closely with a gain of 3.8%, supported by a 3.8% share price increase in its sole constituent company, Abu Dhabi National Energy Co, during terms of monthly stock performance, Presight AI led the gainers' chart for May-2025 with a substantial 32.5% increase in its share price. It was followed by Phoenix Group and Sudatel, which recorded gains of 18.4% and 15.9%, respectively. On the decliners' side, Al Wathba National Insurance Company registered the sharpest fall, with a 24.8% drop in its share price during May, followed by Insurance House Co. and United Arab Bank, which posted declines of 13.1% and 10.7%, activity on the exchange was robust but subdued during May. Total volume of shares traded declined by 8.1%, reaching 6.9 billion shares, compared to 7.6 billion shares in April. Conversely, the total value of traded shares rose by 18.2%, amounting to Dh30.6 billion in May, up from Dh25.9 billion in the previous month. ADNOC Gas topped the most active stocks by volume with 1.4 billion shares traded, followed by Multiply Group and Phoenix Group, which recorded trading volumes of 1 billion shares and 499.5 million shares, respectively. In terms of value traded, ADNOC Gas also led with Dh4.6 billion worth of shares changing hands, followed by International Holdings Company and Al Dar Properties, with traded values of Dh 4.56 billion and Dh2.8 billion, DFM General Index recorded its second consecutive monthly gain in May, rising by 3.3% to close the month at 5,480.5 points. This increase brought the index's year-to-date performance for 2025 to 6.2%.Sectoral performance was entirely positive, with all eight sector indices posting gains during the month. The Materials Index posted the steepest gain at 9.1%, followed by the Industrial Index, which advanced 6.2%. The Financial Index improved by 4.4% in May, mainly supported by double-digit gains in several key companies within the sector, including Dubai Insurance Co (+24.8%) and Naeem Investment Holding (+14.8%). Meanwhile, the Real Estate Index — the largest weighted index among the DFM indices — registered a marginal uptick of 0.1% during the month. Slight share price increases in companies such as Tecom (+1.6%) and Emaar Properties (+0.4%) contributed to the overall marginal improvement of the Real Estate Index. The Utilities Index rose by 0.8% with a 1.9% increase in the share price of DEWA helped offset a 5.0% decline in Empower and a 1.1% drop in to Bloomberg's monthly stock performance data, Amlak Finance led the list of top gainers in May with a notable 30.2% surge in its share price. It was followed by Dubai Insurance and Naeem Investment, which recorded gains of 24.8% and 14.8%, respectively. Trading activity on the exchange was mixed in May. The total volume of shares traded declined by 3.6%, reaching 4.5 billion shares compared to 4.7 billion shares in April. In contrast, the total value of shares traded rose by 17.5% to Dh 15.1 billion in May against Dh12.8 billion in April. DEWA topped the monthly trading volume chart, with 994.1 million traded shares followed by Salik and Talabat at 465.7 million and 397.4 million shares, respectively. In terms of trading value, Emaar Properties led with Dh 3.1 billion worth of shares traded, followed by DEWA and Salik at Dh 2.7 billion and Dh 2.6 billion, respectively.
Al Etihad
20 hours ago
- Business
- Al Etihad
Corporate tax: Unincorporated partnerships can benefit if they opt to be taxed
1 June 2025 15:57 A. SREENIVASA REDDY (ABU DHABI)The Ministry of Finance (MoF) has issued a Cabinet Decision that grants unincorporated partnerships the option, subject to Federal Tax Authority (FTA) approval, to be treated as taxable persons for corporate tax purposes in the new provision allows such partnerships to choose between remaining tax-transparent entities or opting to be taxed in their own right—marking a step forward in enhancing tax clarity and improving the ease of doing business. To understand the implications of this move, Aletihad spoke with tax practitioners to seek clarity on the issue. What is unincorporated partnership?"An unincorporated partnership is an entity that hasn't been registered as a legal entity separate from its owner. Two or more individuals, companies and other legal entities may join with others to form a partnership and decide on key terms of partnership," said Dhaval Jasani, Founder & CEO of ZTI Global, a corporate services firm. Crucially, such partnerships do not possess a separate legal personality. "Each partner is treated as if the partner is conducting business, holding assets and being a party to an arrangement where the partnership is concerned," Jasani outlined in a WAM report, unincorporated partnerships are typically treated as tax-transparent structures—meaning the partnership itself is not taxed. Instead, each partner is individually liable to tax on their share of the income. "Corporate tax compliance is dealt with by the partners in their individual capacity," Jasani Cabinet Decision introduces a notable shift by giving unincorporated partnerships the option to be taxed as a standalone entity. "The law gives them an option to be taxed as a separate person. If they don't choose this, then they remain tax transparent—meaning each partner must still pay tax on their portion of the profits," explained Krishnan Narayanan Venkat, Chairman of the ICAI Abu Dhabi Chapter and Partner at Andersen UAE."A tax-transparent entity is one that passes through its income to the owners, who then pay tax individually. The entity itself doesn't pay tax. Under the UAE CT Law, unincorporated partnerships and certain trusts can be treated this way," Narayanan Venkat are practical advantages to choosing separate taxation, particularly in complex ownership structures. "This can simplify tax filings—especially when there are many partners or when some are based outside the UAE. The partnership files one tax return and pays tax centrally," said Narayanan further explained, "If an unincorporated partnership opts to be taxed as a separate entity, it will be treated just like a company—meaning: it will file its own corporate tax return. It will calculate its taxable income based on the same accounting and tax rules as a company. It can claim allowable expenses, carry forward losses, etc.""With this choice of taxation, unincorporated partnerships can benefit from the exemptions and reliefs available to legal persons under the Corporate Tax Law, such as interest deduction and carry forward of losses," Jasani added. He noted that taxing the unincorporated partnership eases the burden of reporting at the individual partner's level, as the taxable income is calculated centrally at the partnership level. The MoF's latest decision is part of the ongoing evolution of the UAE's corporate tax framework, and it provides greater flexibility for partnerships operating under non-corporate structures, particularly in cross-border or multi-partner scenarios. Source: Aletihad - Abu Dhabi
Al Etihad
3 days ago
- Business
- Al Etihad
ADX and DFM-listed companies post $15 billion in Q1 net profits: Kamco Invest
30 May 2025 19:48 REDDY (ABU DHABI)Companies listed on Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM) recorded a combined net profit of $15 billion in the first quarter of 2025, representing a robust year-on-year (YoY) growth across key sectors, according to a report from Kamco ADX alone contributed $9 billion to the total, while companies on the DFM posted $6 billion in profits, driven largely by strong performances in the banking, telecom, and real estate Dhabi-listed companies witnessed a 9.8% increase in net profits, rising from $8.2 billion in Q1-2024 to $9.0 billion in Q1 2025. The growth was underpinned by strong earnings in the banking sector, which posted a total profit of $2.9 billion, up from $2.4 billion a year earlier. This performance was bolstered by higher earnings across almost all banks, most notably First Abu Dhabi Bank (FAB), which reported a 23.4% YoY increase in net profit to $1.4 billion.'FAB's revenue rose to Dh8.81 billion during the quarter, representing an 11% increase compared to Q1-2024,' the report noted, highlighting "solid business momentum and strong client activity across diversified income streams."Abu Dhabi Commercial Bank also posted solid results, with a 17.3% increase in net profit to $606.6 million, supported by diversified income and enhanced operational the telecom sector, net profits more than doubled, climbing to $1.5 billion in Q1-2025 from $634 million a year earlier. The gain was primarily attributed to Emirates Telecommunication Group (E&), which reported the entire $1.5 billion profit figure. Kamco noted the telco's 18.6% increase in revenue to Dh16.9 billion and 15.4% rise in EBITDA, underscoring efficiency in core energy sector in Abu Dhabi also saw healthy growth, with total earnings rising 7.4% YoY to $2.3 billion. Among top contributors were ADNOC Gas, which recorded a 6.9% rise in profit to $1.3 billion, and ADNOC Drilling, which posted a 24.1% increase to $341 firms saw their aggregate profits grow by 6.3% to $6 billion in Q1 2025, compared to $5.7 billion in the same quarter of 2024. The performance was mainly driven by real estate, transportation, and telecom sectors, while banking, utilities, and consumer services saw YoY declines.'Corporate profits during the period were largely concentrated in the Banking, Real Estate, and Transportation Services sectors, which together accounted for 84.3% of the total net profits in Q1-2025,' the report real estate sector saw one of the strongest growth trends, with total profits increasing by nearly a third to $1.7 billion, up from $1.3 billion in Q1 2024. Emaar Properties led the surge, posting a net profit of $1.01 billion, up 27% YoY, buoyed by sustained demand, successful project launches, and a 50% increase in revenue to Dh10.1 transportation sector reported an 18.4% jump in net profits to $246.7 million. Salik Co., which operates Dubai's toll gates, saw its profits climb 33.6% to $100.9 million, supported by the launch of new gates and the adoption of variable pricing. Banking sector earnings in Dubai slipped by 2.4% to $3.2 billion, largely due to Emirates NBD's profit falling 7.3% to $1.7 billion, driven by higher impairments. However, Dubai Islamic Bank bucked the trend, recording a 9.2% rise in profit to $473.7 million, supported by increased interest and non-interest income.
Al Etihad
4 days ago
- Business
- Al Etihad
ADX market cap crosses Dh3 trillion mark again
29 May 2025 23:07 REDDY (ABU DHABI)The combined market capitalisation of all companies listed on the Abu Dhabi Securities Exchange (ADX) crossed the Dh3 trillion mark once again on the ADX market cap surpassed this milestone on February 10, 2025. At the close of trading on Thursday, the total market cap of companies listed on both the main and growth markets of ADX stood at Dh3.007 exchange first crossed the Dh2 trillion mark in June 2022, and it took nearly three years to reach the next significant threshold in February 2025. However, after briefly staying above Dh3 trillion, the market cap retreated due to volatile conditions triggered by tariff wars and geopolitical tensions. The recent rally in the markets has now pushed the valuation past the Dh3 trillion mark once has witnessed substantial growth in recent years, driven by a strong economy, increasing foreign investment, and a surge in initial public offerings (IPOs). In 2024 alone, 28 new securities were listed, bringing the total to 187. In the first quarter of 2025, information technology firm Alpha Data made its market debut following a successful IPO, amid growing optimism that Abu Dhabi's flagship airline, Etihad Airways, may also launch an IPO this 2024, ADX ranked among the top five global exchanges by IPO proceeds, with offerings raising approximately $3.35 billion. It captured 38% of all IPO proceeds in the Middle East and 80% of those within the UAE, according to a Wam report on the year's its position as the second-largest exchange in the region, ADX also held its place among the world's top 20 stock markets. Its consistent global ranking reflects a well-regulated, investor-friendly environment. 'This milestone enhances the exchange's reputation and boosts investor confidence, paving the way for sustained growth and further capital market development in the UAE,' said Samer Mardini, Chief Investment Officer at Yorklyn Asset Management.
