The spring of 2020 was a difficult time for many around the world. In the UAE, the health threat posed by the newly emerged coronavirus necessitated the introduction of stay-at-home orders and other forms of social distancing. This led many businesses to develop online services for newly housebound customers, whether for groceries, home deliveries or money transfers.
Three years ago this month, the Careem Super App was introduced, marking an expansion for the Dubai-based company from its beginnings as a ride-hailing service to one with a range of offerings that included car and bicycle rental, utilities payments and food delivery. Careem’s success has been plain to see and the purchase this week by telecoms operator e& of a 50.03 per cent majority share in the Super App for $400 million is a not only a significant development, it is a vote of confidence in the UAE’s business environment.
It is the latest chapter in an Arab success story that has its roots in the Emirates. Careem, founded in 2012, became the Middle East's first unicorn, a start-up with a valuation of at least $1 billion, in 2016 and three years later it was bought by Uber for $3.1 billion. Its adaptability and willingness to branch out and develop new products has not gone unnoticed, with Hatem Dowidar, group chief executive of e&, describing this week how super apps such as Careem’s “catalysed the economic, social and cultural growth of emerging markets today”.
This market growth can be seen in a string of major deals taking place recently in the Emirates. e&'s deal with Careem follows its 2022 agreement with Abu Dhabi holding company ADQ to acquire a majority stake in video streaming service Starzplay Arabia. More recently, at the end of March, Noor Capital, an Abu Dhabi-based investment company and financial services provider, completed a 100 per cent acquisition of UK financial brokers, House of Borse.
Also last month, Mubadala Business Management Services, now rebranded as Solutions+, told The National it was considering acquisitions at home and abroad, as well as an initial public offering, as part of its growth strategy. And in the financial sphere, the chief executive of First Abu Dhabi Bank, Hana Al Rostamani, this week told The National that the business was open to acquisition opportunities in the Middle East and North Africa, as well as in other markets, as it continues to expand.
On one hand, these deals reveal a strong domestic recovery from the dark days of the pandemic. Last week it was reported that business activity in the UAE’s non-oil private sector had expanded at the strongest pace in five months, and employment in the Arab world's second-largest economy in March grew at the fastest rate since 2016. In addition, last Thursday the World Trade Organisation said the UAE's goods trade with the rest of the world hit $1.024 trillion last year.
But as well as highlighting a sound business environment in the UAE, this acquisition activity also shows a willingness to diversify and seek out new opportunities at home and abroad. e& has described its agreement with Careem as accelerating its transformation into a global technology group. This reflects Careem’s own development from a company that operated in a single industry to one that has diversified into many areas.
As a company, Careem is not just a prime example of a successful partnership between local talent and a major international company. It is an enterprise that shares the ambition inherent in the UAE business world and that continues to move forward with one foot firmly planted in the country where it all began.
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Company Profile
Company name: NutriCal
Started: 2019
Founder: Soniya Ashar
Based: Dubai
Industry: Food Technology
Initial investment: Self-funded undisclosed amount
Future plan: Looking to raise fresh capital and expand in Saudi Arabia
Total Clients: Over 50
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6.30pm: Maiden Dh 165,000 1,600m
7.05pm: Handicap Dh 185,000 2,000m
7.40pm: Maiden Dh 165,000 1,600m
8.15pm: Handicap Dh 190,000 1,400m
8.50pm: Handicap Dh 175,000 1,600m
9.25pm: Handicap Dh 175,000 1,200m
10pm: Handicap Dh 165,000 1,600m
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Dunki
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The specs
Engine: 2.5-litre, turbocharged 5-cylinder
Transmission: seven-speed auto
Power: 400hp
Torque: 500Nm
Price: Dh300,000 (estimate)
On sale: 2022
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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Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
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