A Dubai business jet maker has been sold for less than half the price of one of its aircraft, after bankruptcy proceedings in the US.
The assets of Emivest Aerospace, the maker of the US$7.2 million (Dh26.4m) SJ30 light business jet, have been bought by Metalcraft Technologies, based in Utah, for $3.5m in cash plus liabilities.
Emivest's three-year involvement in the US business aviation industry coincided with a steep fall in demand for business jet travel during the global downturn.
The sale also brings to an end six months of US bankruptcy proceedings, a process in which Emivest estimated that its $80m in assets were counterbalanced by $77m in debt.
Emirates Investment and Development (Emivest), part-owned by the Dubai Government, entered the US aviation manufacturing market in 2008. It bought 80 per cent of the shares of Sino Swearingen Aircraft, the maker of the SJ30, and renamed the firm Emivest Aerospace.
At the time, Emivest said it would invest $150m in the company and increase production of the SJ30 as quickly as possible as well as developing other aircraft.
In 2009, Emivest went further, proposing to inject $1bn into boosting the aircraft programme's prospects.
But in October, the company filed for Chapter 11 protection in the US courts, which allows a debtor company to be shielded from creditor claims while it reorganises its operations.
Business aviation is a risky business with a high rate of failure for aircraft makers, and Emivest's purchase of the jet programme came at a time when the SJ30 was still struggling to change from a lengthy and expensive development phase into commercial production.
In its bankruptcy papers, Emivest said it suffered from "inherent production inefficiencies, and low initial production volumes, typically associated with transitioning a complex product from development to commercial production".
Metalcraft, the buyer, was a metal parts provider for the SJ30 programme. In addition to its cash offer, Metalcraft agreed to cover $1.6m in assumed liabilities relating to a down payment for one aircraft order.
The company has three months to pull manufacturing equipment and other assets from two production facilities in Texas and West Virginia, totalling 18,500 square metres of manufacturing space, which are being put up for auction.
During its spell running the SJ30, Emivest produced just two of the light jets, one of which was delivered to the US actor Morgan Freeman at the 2009 Dubai Air Show.
The aerospace company had been expected to be sold to China Aviation Industry General Aircraft, which had reportedly offered to invest "more than $100m" to restart the stalled production of the SJ30, which is said to have hundreds of orders. But that deal did not materialise.
Court documents listed dozens of creditors including Action Aviation, Emivest's Middle East sales representative.
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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.
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