iPhone OS apps on display. It takes both perseverance and luck to succeed in the market. Tony Avelar / Bloomberg News
iPhone OS apps on display. It takes both perseverance and luck to succeed in the market. Tony Avelar / Bloomberg News
iPhone OS apps on display. It takes both perseverance and luck to succeed in the market. Tony Avelar / Bloomberg News
iPhone OS apps on display. It takes both perseverance and luck to succeed in the market. Tony Avelar / Bloomberg News

Appily ever after, for some


Andrew Scott
  • English
  • Arabic

Apps are big business. Apple recently announced its 50 billionth download since the App Store launched in July 2008 with US$9 billion paid out to developers in the same period.

With figures like that it's no wonder the Global App Summit in Dubai this month was thronging with developers, designers and entrepreneurs all hoping to crack the creative code to software success.

However, statistics show it takes more than a great idea to succeed in the app market.

According to Feroz Sanaulla, a former executive director of Intel Capital, now a UAE-based entrepreneurship and innovation adviser, on average a developer has 4.6 apps in his stable and out of nearly 10 billion apps sold, the average return per app is $8,700.

"The top 1 per cent of apps receive 50 per cent of downloads. Sixty per cent of apps don't get downloaded at all and more than 90 per cent of downloads come from the top 25 on the app store," he says.

The problem for the app business, it seems, is to get your app noticed and, once noticed, then bought.

But with most apps given away for free, the developers rely on in-app purchases or advertising revenue - both hard to come by if no one's actually downloading the app.

"The invisibility factor out there is huge. You have a very choosy market and yet you are anonymous to them," says Mr Sanaulla.

There are two dominant players in the hardware market: the iOS platform run by Apple on which 56 per cent of apps offered are free, and Android, where 72 per cent of apps are free, industry figures reveal.

The two players account for about 80 per cent of the market with at least five other players, including BlackBerry and Microsoft, fighting over the remaining 20 per cent.

It leaves developers little choice but to create apps for the players with the biggest market share and battle to get noticed.

Tamer Alaa, an Egyptian telecoms engineer, has been developing apps for three years. His latest, shoplog, keeps a diary of the online sites users have visited, allowing them to select their favourites, compare with other sites and share their preferences.

He cites the buying of bridesmaids' dresses as an example of how the app works best; the dresses are perused online and shared with a number of people, showing a number of products over a host of sites.

Mr Alaa says marketing is the top challenge in app development.

"It is the most expensive and exhausting thing about app building," he says. "The most important thing is creating a loyal customer, somebody who is actually using your app, not just opening and closing it. A game is often played in your downtime, a news app will be used in the morning or the evening. But creating stickiness is crucial so you know where you stand compared to the average."

It's big global success stories such as Rovio's Angry Birds - launched in 2009 with more than 50 million downloads last year alone - that keeps fledgling app builders motivated. According to Rovio, on the iPhone alone the game, at its peak, accounted for more than 100 million minutes of viewing per day.

Rovio has refreshed the game with new free themed levels retaining 80 per cent of its players. For the three Finnish students behind the success, Angry Birds has catapulted them to a company valuation of $8.6bn.

But the game was one in a long list of loss-making apps; in fact it was Rovio's 52nd app. It had a losing streak of 51 before its irate avians took the world by storm.

So how can app developers get themselves noticed?

"The big guys will be visible and survive, but there is a difference between survive and thrive and you can thrive in a smaller marketplace," says Mr Sanaulla. "You don't have to be a $100bn company, you can be a very successful $10 million company but the strategy has to be in place. Your war chest should have many tools to get to that point such as a marketing strategy, a media strategy, word of mouth strategy etc. Relying on one guy telling his buddies is no strategy at all."

While being visible and indispensable are important, it seems being lucky is even more so.

Emirates exiles

Will Wilson is not the first player to have attained high-class representative honours after first learning to play rugby on the playing fields of UAE.

Jonny Macdonald
Abu Dhabi-born and raised, the current Jebel Ali Dragons assistant coach was selected to play for Scotland at the Hong Kong Sevens in 2011.

Jordan Onojaife
Having started rugby by chance when the Jumeirah College team were short of players, he later won the World Under 20 Championship with England.

Devante Onojaife
Followed older brother Jordan into England age-group rugby, as well as the pro game at Northampton Saints, but recently switched allegiance to Scotland.

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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