Torsten Muller-Otvos, chief executive of Rolls-Royce Motor Cars, with the Cullivan SUV. Photo courtesy Rolls-Royce Motor Cars
Torsten Muller-Otvos, chief executive of Rolls-Royce Motor Cars, with the Cullivan SUV. Photo courtesy Rolls-Royce Motor Cars
Torsten Muller-Otvos, chief executive of Rolls-Royce Motor Cars, with the Cullivan SUV. Photo courtesy Rolls-Royce Motor Cars
Torsten Muller-Otvos, chief executive of Rolls-Royce Motor Cars, with the Cullivan SUV. Photo courtesy Rolls-Royce Motor Cars

Rolls-Royce SUV proved ‘recipe for success’, says CEO


Nada El Sawy
  • English
  • Arabic

The first SUV from Rolls-Royce led the company to have its best ever year in 2019, with a 25 per cent increase in sales worldwide and Middle East and Africa sales up 29 per cent from 2018, the British luxury car maker said on Tuesday.

The Middle Eastern market is a very strong market for sports utilities and the Cullinan has proven the recipe for success.

Rolls-Royce Motor Cars, which is owned by the BMW Group, sold a record 5,152 cars last year, compared to 4,107 in the previous year. The Cullinan, unveiled in 2018, became the fastest-selling new model in Rolls-Royce’s 116-year history.

"It's a tremendous result … 25 per cent growth in one year is unbelievable and unseen," Torsten Muller-Otvos, chief executive of Rolls-Royce Motor Cars, said in a phone interview with The National.

While a global slowdown has affected the sales of mass-market car makers such as Volkswagen and Ford, the Cullinan and its niche of exclusivity have helped Rolls-Royce buck the trend.

North America accounted for about a third of global sales, followed by China with about 25 per cent and Europe. The Middle East represented approximately 10 per cent of sales volume, “a very stable, robust number”, Mr Muller-Otvos said.

The Cullinan — named after the largest diamond ever found — made up around 40 per cent of sales volume worldwide, with a “slightly higher” proportion in the Middle East, Mr Muller-Otvos said. Strong results in the Middle East and Africa region were spurred by sales of the Cullinan and the continued popularity of the Phantom.

“Particularly the Middle Eastern market is a very strong market for sports utilities and the Cullinan has proven the recipe for success,” Mr Muller-Otvos said.

The GCC has the strongest demand in the region with the biggest dealerships in Dubai and Abu Dhabi, said Cesar Habib, regional director of Rolls-Royce Motor Cars Middle East and Africa.

“Be it Abu Dhabi, be it Dubai, be it Kuwait, be it Saudi, they all delivered excellent results for us,” Mr Muller-Otvos said.

Shortly after the new SUV went on the market, a Dh2.2 million bespoke Cullinan in "twilight purple" arrived in Abu Dhabi in December 2018. The Black Badge Cullinan, rolled out in November 2019, sells for around Dh1.9 million in the UAE.

The Phantom, now in its eighth generation, is the second best-selling car in the region. “The Phantom has always been the pinnacle of our brand,” Mr Habib said. “In this region, people just want the best car … it’s a statement to drive up with a Phantom.”

The Phantom, now in its eighth generation, is the second best-selling car in the region. Photo courtesy Rolls-Royce Motor Cars
The Phantom, now in its eighth generation, is the second best-selling car in the region. Photo courtesy Rolls-Royce Motor Cars

The Black Badge concept, which debuted in 2016 with Wraith and Ghost models, followed by the Dawn a year later and the Cullinan completing the range, has also helped attract younger clients, Mr Muller-Otvos said.

The average age of a Rolls-Royce buyer is now 43 years old, compared to 56 years old a decade ago, which is “quite a remarkable rejuvenation of the brand”, Mr Muller-Otvos said. There are also more women buyers, making up about 15 per cent.

Mr Muller-Otvos said demand for the Cullinan is expected to “stabilise” in 2020. While sales growth levels may not reach 25 per cent, he said he is “optimistic we should see a very good and strong year”.

Last year marked the end of Ghost production after 11 years, with its successor due for launch this summer and market availability from the fourth quarter.

"My role as chief executive is to balance demand from our customers with higher exclusivity," Mr Muller-Otvos told The National. "We will never offer lower priced models just for the sake of getting more volume. That's not our intention."

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The specs

Engine: 4.0-litre V8 twin-turbocharged and three electric motors

Power: Combined output 920hp

Torque: 730Nm at 4,000-7,000rpm

Transmission: 8-speed dual-clutch automatic

Fuel consumption: 11.2L/100km

On sale: Now, deliveries expected later in 2025

Price: expected to start at Dh1,432,000

GIANT REVIEW

Starring: Amir El-Masry, Pierce Brosnan

Director: Athale

Rating: 4/5

The specs: 2018 Renault Megane

Price, base / as tested Dh52,900 / Dh59,200

Engine 1.6L in-line four-cylinder

Transmission Continuously variable transmission

Power 115hp @ 5,500rpm

Torque 156Nm @ 4,000rpm

Fuel economy, combined 6.6L / 100km

MATCH INFO

Chelsea 4 (Mount 18',Werner 44', Hudson-Odoi 49', Havertz 85')

Morecambe 0

Match info:

Burnley 0

Manchester United 2
Lukaku (22', 44')

Red card: Marcus Rashford (Man United)

Man of the match: Romelu Lukaku (Manchester United)

MATCH INFO

Uefa Champions League last 16, first leg

Liverpool v Bayern Munich, midnight, Wednesday, BeIN Sports

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German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution

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

The more serious side of specialty coffee

While the taste of beans and freshness of roast is paramount to the specialty coffee scene, so is sustainability and workers’ rights.

The bulk of genuine specialty coffee companies aim to improve on these elements in every stage of production via direct relationships with farmers. For instance, Mokha 1450 on Al Wasl Road strives to work predominantly with women-owned and -operated coffee organisations, including female farmers in the Sabree mountains of Yemen.

Because, as the boutique’s owner, Garfield Kerr, points out: “women represent over 90 per cent of the coffee value chain, but are woefully underrepresented in less than 10 per cent of ownership and management throughout the global coffee industry.”

One of the UAE’s largest suppliers of green (meaning not-yet-roasted) beans, Raw Coffee, is a founding member of the Partnership of Gender Equity, which aims to empower female coffee farmers and harvesters.

Also, globally, many companies have found the perfect way to recycle old coffee grounds: they create the perfect fertile soil in which to grow mushrooms. 

FIGHT%20CARD
%3Cp%3EAnthony%20Joshua%20v%20Otto%20Wallin%2C%2012%20rounds%2C%20heavyweight%3C%2Fp%3E%0A%3Cp%3EDeontay%20Wilder%20v%20Joseph%20Parker%2C%2012%20rounds%2C%20heavyweight%3C%2Fp%3E%0A%3Cp%3EDmitry%20Bivol%20v%20Lyndon%20Arthur%2C%2012%20rounds%2C%20light%20heavyweight%3C%2Fp%3E%0A%3Cp%3EDaniel%20Dubois%20v%20Jarrell%20Miller%2C%2012%20rounds%2C%20heavyweight%3C%2Fp%3E%0A%3Cp%3EFilip%20Hrgovic%20v%20Mark%20de%20Mori%2C%2012%20rounds%2C%20heavyweight%C2%A0%3C%2Fp%3E%0A%3Cp%3EArslanbek%20Makhmudov%20v%20Agit%20Kabayel%2C%2012%20rounds%2C%20heavyweight%C2%A0%3C%2Fp%3E%0A%3Cp%3EFrank%20Sanchez%20v%20Junior%20Fa%2C%2012%20rounds%2C%20heavyweight%C2%A0%3C%2Fp%3E%0A%3Cp%3EJai%20Opetaia%20v%20Ellis%20Zorro%2C%2012%20rounds%2C%20cruiserweight%3C%2Fp%3E%0A
MATCH INFO

Scotland 59 (Tries: Hastings (2), G Horne (3), Turner, Seymour, Barclay, Kinghorn, McInally; Cons: Hastings 8)

Russia 0

UK’s AI plan
  • AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
  • £10bn AI growth zone in South Wales to create 5,000 jobs
  • £100m of government support for startups building AI hardware products
  • £250m to train new AI models
The biog

Name: Maitha Qambar

Age: 24

Emirate: Abu Dhabi

Education: Master’s Degree

Favourite hobby: Reading

She says: “Everyone has a purpose in life and everyone learns from their experiences”

The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young