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Deyaar Development PJSC Interim / Quarterly Report 2025
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Interim / Quarterly Report
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Review report and unaudited interim condensed consolidated financial statements
30 September 2025
| Content | Pages |
|---|---|
| Report on review of interim condensed consolidated financial statements | 1 |
| Interim condensed consolidated statement of financial position | 2 |
| Interim condensed consolidated statement of profit or loss | 3 |
| Interim condensed consolidated statement of comprehensive income | 4 |
| Interim condensed consolidated statement of changes in equity | 5 |
| Interim condensed consolidated statement of cash flows | 6 |
| Notes to the interim condensed consolidated financial statements | 7 – 22 |
ERNST & YOUNG MIDDLE EAST (DUBAI BRANCH) P.O. Box 9267 ICD Brookfield Place, Ground Floor Al-Mustaqbal Street Dubai International Financial Centre Emirate of Dubai, United Arab Emirates Tel: +971 4 701 0100 +971 4 332 4000 Fax: +971 4 332 4004 [email protected] https://www.ey.com
P.L. No. 108937
REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS TO THE SHAREHOLDERS OF DEYAAR DEVELOPMENT (P.J.S.C)
Introduction
We have reviewed the accompanying interim condensed consolidated financial statements of Deyaar Development (P.J.S.C) (the "Company") and its subsidiaries (together referred to as the "Group"), which comprise the interim condensed consolidated statement of financial position as at 30 September 2025, and the related interim condensed consolidated statement of profit or loss and interim condensed consolidated statement of comprehensive income for the three-months and nine-months periods then ended and the related interim condensed consolidated statement of changes in equity and interim condensed consolidated statement of cash flows for the nine-months period then ended, and explanatory notes.
Management is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with International Accounting Standard 34, Interim Financial Reporting ("IAS 34"). Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim condensed consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34.
Ernst & Young Middle East (Dubai Branch)
Wardah Ebrahim Registration No: 1258
4 November 2025
Dubai, United Arab Emirates
| 2025 2024 Notes AED'000 AED'000 (Unaudited) (Audited) ASSETS Non-current assets Property and equipment 6 545,386 553,808 Right of use assets 7 11,313 1,708 Investment properties 8 922,259 883,393 Investments in a joint venture and an associate 1,405,745 1,378,864 Trade, contract and other receivables 9 424,172 224,926 Deferred tax asset 1,863 609 Equity investment at fair value through other comprehensive income 8,847 9,978 3,319,585 3,053,286 Current assets Properties held for development and sale 10 1,086,998 956,082 Inventories 3,104 4,473 Trade, contract and other receivables 9 1,201,495 980,957 Advance for purchase of property 90,000 ۳ Due from related parties ${II}$ 1,572 4,045 Cash and bank balances 12 1,978,204 1,744,075 4,271,373 3,779,632 Total assets 7,590,958 6,832,918 EQUITY Share capital 13 4,375,838 4,375,838 Legal reserve 105,897 105,897 Equity investment fair valuation reserve (10, 488) (9, 357) Retained earnings 954,851 765,243 Equity attributable to equity holders of the parent 5,426,098 5,237,621 Non-controlling interests 44,533 27,376 Total equity 5,264,997 5,470,631 LIABILITIES Non-current liabilities Borrowings 14 366,692 415,296 Trade and other payables 16 2,377 3,169 Retentions payable 37,325 28,019 Lease liabilities 18,008 523 Provision for employees' end of service benefits 17,087 17,522 441,489 464,529 Current liabilities Borrowings 14 60,000 60,000 Advances from customers 15 675,381 427,865 Trade and other payables 16 833,248 540,616 Due to related parties ${II}$ 961 297 Retentions payable 39,405 33,407 Lease liabilities 17 18,502 4,964 Deferred tax liability 3,735 Income tax payable 42,269 32,107 Provisions for claims 5,337 4,136 1,678,838 1,103,392 Total liabilities 2,120,327 1,567,921 |
30 September | 31 December | |
|---|---|---|---|
| TOTAL EQUITY AND LIABILITIES | 7,590,958 | 6,832,918 |
INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
For the nine months period ended 30 September 2025
| Nine months ended | Three months ended | ||||
|---|---|---|---|---|---|
| 30 | 30 | 30 | 30 | ||
| September | September | September | September | ||
| 2025 | 2024 | 2025 | 2024 | ||
| Note | AED'000 | AED'000 | AED'000 | AED'000 | |
| (Unaudited) | (Unaudited) | ||||
| Revenue | 1,447,021 | 1,040,515 | 521,592 | 376,110 | |
| Direct costs | (943,525) | (701,291) | (342,911) | (254,565) | |
| General, administrative and selling expenses | (206,224) | (189,993) | (67,600) | (65,066) | |
| Other operating income | 38,053 | 80,649 | 15,206 | 9,234 | |
| Finance cost | (27,479) | (35,324) | (8,689) | (10,743) | |
| Finance income | 26,612 | 26,452 | 10,563 | 12,457 | |
| Change in valuation of investment | |||||
| properties - net | 8 | 7,405 | - | (3,708) | - |
| Share of results from a joint venture | |||||
| and an associate | 83,881 | 127,779 | 34,677 | 78,754 | |
| Profit for the period before tax | 425,744 | 348,787 | 159,130 | 146,181 | |
| Income tax expense | 22 | (19,337) | (20,327) | (1,286) | (6,381) |
| PROFIT FOR THE PERIOD AFTER TAX | 406,407 | 328,460 | 157,844 | 139,800 | |
| Owners of the Company | 408,400 | 328,460 | 157,437 | 139,800 | |
| Non-controlling interests | (1,993) | - | 407 | - | |
| 406,407 | 328,460 | 157,844 | 139,800 | ||
| Earnings per share – basic and diluted | 21 | Fils 9.33 | Fils 7.51 | Fils 3.59 | Fils 3.20 |
The attached notes 1 to 22 form an integral part of these interim condensed consolidated financial statements.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the nine months period ended 30 September 2025
| Nine months ended | Three months ended | ||||
|---|---|---|---|---|---|
| 30 September | 30 September | 30 September | 30 September | ||
| 2025 | 2024 | 2025 | 2024 | ||
| AED'000 | AED'000 | AED'000 | AED'000 | ||
| (Unaudited) | (Unaudited) | ||||
| Profit for the period | 406,407 | 328,460 | 157,844 | 139,800 | |
| Other comprehensive income | |||||
| Items that will not be subsequently reclassified to profit or loss |
|||||
| Equity investment at fair value through other comprehensive income– net change in fair value |
(1,131) | (182) | (3,070) | (121) | |
| Total comprehensive income for the period | 405,276 | 328,278 | 154,774 | 139,679 | |
| Attributable to: | |||||
| Owners of the Company | 407,269 | 328,278 | 154,367 | 139,679 | |
| Non-controlling interests | (1,993) | - | 407 | - | |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
405,276 | 328,278 | 154,774 | 139,679 |
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the nine months period ended 30 September 2025
| Attributable to the equity holders of the parent | |||||||
|---|---|---|---|---|---|---|---|
| Share Capital AED'000 |
Legal reserve AED'000 |
Equity investments fair valuation reserve AED'000 |
Retained Earnings AED'000 |
Total AED'000 |
Non controlling interests AED'000 |
Total equity AED'000 |
|
| Balance at 1 January 2024 | 4,375,838 | 58,495 | (15,295) | 519,207 | 4,938,245 | - | 4,938,245 |
| Total comprehensive income for the period (unaudited) | |||||||
| Profit for the period | - | - | - | 328,460 | 328,460 | - | 328,460 |
| Other comprehensive income for the period | - | - | (182) | - | (182) | - | (182) |
| Total comprehensive income for the period (unaudited) | - | - | (182) | 328,460 | 328,278 | - | 328,278 |
| Adjustments to Board of Directors' remuneration [Refer Note 11 (b)] | - | - | - | (1,000) | (1,000) | - | (1,000) |
| Dividend payment to shareholders [Refer Note 13] | - | - | - | (175,034) | (175,034) | - | (175,034) |
| Balance at 30 September 2024 (unaudited) | 4,375,838 | 58,495 | (15,477) | 671,633 | 5,090,489 | - | 5,090,489 |
| Balance at 1 January 2025 | 4,375,838 | 105,897 | (9,357) | 765,243 | 5,237,621 | 27,376 | 5,264,997 |
| Total comprehensive income for the period (unaudited) | |||||||
| Profit for the period | - | - | - | 408,400 | 408,400 | (1,993) | 406,407 |
| Other comprehensive loss for the period | - | - | (1,131) | - | (1,131) | - | (1,131) |
| Total comprehensive income for the period (unaudited) | - | - | (1,131) | 408,400 | 407,269 | (1,993) | 405,276 |
| Capital contribution during the period | - | - | - | - | - | 19,150 | 19,150 |
| Dividend payment to shareholders [Refer Note 13] | - | - | - | (218,792) | (218,792) | - | (218,792) |
| Balance at 30 September 2025 (unaudited) | 4,375,838 | 105,897 | (10,488) | 954,851 | 5,426,098 | 44,533 | 5,470,631 |
The attached notes 1 to 22 form an integral part of these interim condensed consolidated financial statements.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the nine months period ended 30 September 2025
| Nine months period ended | |||
|---|---|---|---|
| 30 September | 30 September | ||
| 2025 | 2024 | ||
| Notes | AED'000 | AED'000 | |
| (Unaudited) | (Unaudited) | ||
| Cash flows from operating activities | |||
| Profit for the period before tax Adjustments for: |
425,744 | 348,787 | |
| Depreciation on property and equipment | 14,494 | 14,982 | |
| Depreciation on right of use asset | 7 | 3,568 | - |
| Provision for employees' end of service benefits | 3,696 | 3,166 | |
| Reversal of provision against properties held for development | |||
| and sale | (124) | (5,923) | |
| Impairment against trade receivables, contract and other financial | |||
| assets | 477 | 7,409 | |
| Provision against claims | 1,201 | - | |
| Finance income | (26,612) | (26,452) | |
| Finance costs | 27,479 | 35,324 | |
| Change in valuation of investment properties | (7,405) | - | |
| Share of results from a joint venture and an associate | (83,881) | (126,444) | |
| Operating cash flows before changes in working capital | 358,637 | 250,849 | |
| Changes in working capital: | |||
| Property held for development and sale (net of project cost accruals) | (20,121) | 82,639 | |
| Trade and other receivables | (419,050) | (55,072) | |
| Due from related parties | 2,491 | 255,550 | |
| Inventories | 1,369 | 1,844 | |
| Retentions payable | 15,304 | 22,488 | |
| Advances from customers | 247,516 | 75,307 | |
| Trade and other payables | 292,207 | 39,950 | |
| Due to related parties | 664 | (321) | |
| Operating cash flows after changes in working capital | |||
| 479,017 | 673,234 | ||
| Payment of employees' end of service benefits Payment of income tax |
(4,131) (6,694) |
(796) - |
|
| Net cash generated from operating activities | 468,192 | 672,438 | |
| Cash flows from investing activities | |||
| Additions to property and equipment | (7,464) | (13,073) | |
| Addition to investment properties | (816) | (522) | |
| Dividend from a joint venture and an associate | 57,000 | 25,266 | |
| Repayment of contributed capital from joint venture | - | 72,234 | |
| Net movement in term deposits with an original maturity greater than | |||
| three months | 191,000 | 18,000 | |
| Finance income received | 25,383 | 17,574 | |
| Net cash generated from investing activities | 265,103 | 119,479 | |
| Cash flows from financing activities | |||
| Repayment of lease liabilities | 17 | (14,555) | - |
| Repayments of borrowings | 14 | (70,000) | (130,659) |
| Drawdown of borrowings | 14 | 21,396 | - |
| Finance costs paid | (26,215) | (37,318) | |
| Dividends paid | 13 | (218,792) | (175,034) |
| Net cash used in financing activities | (308,166) | (343,011) | |
| Net increase in cash and cash equivalents | 425,129 | 448,906 | |
| Cash and cash equivalents, beginning of the period | 1,443,075 | 833,555 | |
| CASH AND CASH EQUIVALENTS, END OF THE PERIOD | 12 | 1,868,204 | 1,282,461 |
The attached notes 1 to 22 form an integral part of these interim condensed consolidated financial statements.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the nine months period ended 30 September 2025
1. Legal status and activities
Deyaar Development (P.J.S.C) (the "Company") was incorporated and registered as a Public Joint Stock Company in the Emirate of Dubai, UAE on 10 July 2007. The registered address of the Company is P. O. Box 30833, Dubai, United Arab Emirates ("UAE"). The Company is listed on Dubai Financial Market, Dubai, UAE (Ticker: DEYAAR).
The ultimate majority shareholder of the Group is Dubai Islamic Bank (the "Ultimate Controlling Party").
The principal activities of the Company and its subsidiaries (together, "the Group") are property investment and development, leasing, facilities and property management services and hospitality related activities.
2. Basis of preparation and accounting policies
2.1 Basis of preparation
These interim condensed consolidated financial statements for the nine months period ended 30 September 2025 have been prepared in accordance with IAS 34: Interim Financial Reporting. The Group has prepared the interim condensed consolidated financial statements on the basis that it will continue to operate as a going concern.
The interim condensed consolidated financial statements do not include all the information and disclosures required for full year annual consolidated financial statements prepared in accordance with IFRS Accounting Standards and should be read in conjunction with the Group's annual consolidated financial statements as at and for the year ended 31 December 2024. In addition, the results for the nine months period ended 30 September 2025 are not necessarily indicative of the results that may be expected for the full financial year ending 31 December 2025.
Certain comparative figures have been reclassified to conform to the presentation adopted in these interim condensed consolidated financial statements. The reclassification does not have any material effect on the interim condensed consolidated statement of profit or loss, interim condensed consolidated statement of comprehensive income, interim condensed consolidated statement of changes in equity and interim condensed consolidated statement of cash flows.
The interim condensed consolidated financial statements include the assets, liabilities and results from the operations of the Group's subsidiaries:
| Effective ownership | ||||
|---|---|---|---|---|
| Name of entities subsidiaries | Country of incorporation |
30 September 2025 |
31 December 2024 |
Principle activities |
| Deyaar Facilities Management LLC | UAE | 100% | 100% | Facility Management services |
| Nationwide Realtors LLC * | UAE | 100% | 100% | Brokerage and other related services |
| Deyaar Hospitality LLC | UAE | 100% | 100% | Property Investment and Development |
| Deyaar International LLC * | UAE | 100% | 100% | Real Estate Company |
| Deyaar Ventures LLC * | UAE | 100% | 100% | Property Investment and Development |
| Flamingo Creek LLC ** | UAE | 100% | 100% | Property Investment and Development |
| Beirut Bay Sal ** | Lebanon | 100% | 100% | Property Investment and Development |
| Deyaar West Asia Cooperatief U.A. *** | Netherlands | - | 100% | Investment Holding Company |
| Deyaar Community Management LLC | UAE | 100% | 100% | Owners Association Management |
| Deyaar AL Tawassol Lil Tatweer Aleqare Co.*** |
KSA | - | 100% | Property Investment and Development |
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the nine months period ended 30 September 2025
2. Basis of preparation and accounting policies (continued)
2.1 Basis of preparation (continued)
| Effective ownership | |||||
|---|---|---|---|---|---|
| Name of entities subsidiaries | Country of | 30 | 31 | Principle activities | |
| incorporation | September | December | |||
| 2025 | 2024 | ||||
| Deyaar Property Management LLC | UAE | 100% | 100% | Property Management | |
| Montrose L.L.C * | UAE | 100% | 100% | Buying, Selling and Real Estate Development |
|
| The Atria L.L.C | UAE | 100% | 100% | Hotel Management | |
| Deyaar One Person Holding LLC* | UAE | 100% | 100% | Investment in Commercial/Industrial Enterprise & Management |
|
| Bella Rose Real Estate Development L.L.C |
UAE | 100% | 100% | Buying, Selling and Real Estate Development |
|
| Nationwide Management Services LLC | UAE | 100% | 100% | District cooling services | |
| Al Barsha LLC | UAE | 100% | 100% | Hotel & Hotel Apartments Rental |
|
| Mont Rose FZ-LLC (also holds registration as Millenium Montrose Hotel apartments LLC issued by Dubai economic Department) |
UAE | 100% | 100% | Hotels & Leisure services | |
| Deyaar Bay Real Estate Development | UAE | 100% | 100% | Buying, Selling and Real Estate Development |
|
| Rivage Property Development LLC | UAE | 52% | 52% | Property Investment and Development |
|
| Deyaar Umm Al Quwain Waterfront LLC |
UAE | 50% | - | Property Investment and Development |
|
| Joint Venture | |||||
| Arady Developments LLC | UAE | 50% | 50% | Property Investment and Development |
|
| Associate | |||||
| SI Al Zorah Equity Investments Inc. | Cayman Islands |
22.72% | 22.72% | Property Investment and Development |
* These entities did not carry out any commercial activities during the period.
** These entities are under liquidation and did not carry out any commercial activities during the period. *** These entities were liquidated during the period.
Fair Value Measurement
All financial assets and liabilities are stated at amortised cost or historical cost except for FVOCI investments and investment properties which are measured at fair value. The fair values of other financial assets and liabilities are not materially different from their carrying values at the reporting date.
2.2 New standards, interpretations and amendments adopted by the Group
The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2024, except for the adoption of new standards effective as of 1 January 2025. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.
(a) New and revised IFRSs and interpretations that are effective for the current period
One amendment applies for the first time in 2025, but does not have an impact on the interim condensed consolidated financial statements of the Group.
Amendments to IAS 21 relating to Lack of Exchangeability.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the nine months period ended 30 September 2025
2. Basis of preparation and accounting policies (continued)
2.2 Application of new and revised International Financial Reporting Standards (IFRSs) (continued)
(b) New and revised IFRSs in issue but not yet effective and not early adopted
The Group has not early adopted the following new and revised standards that have been issued but are not yet effective, as at 30 September 2025 are disclosed below:
| New and revised IFRSs | Effective for annual periods beginning on or after |
|---|---|
| Classification and Measurement of Financial Instruments- Amendments to IFRS 9 and IFRS 7 |
1 January 2026 |
| Contracts Referencing Nature-dependent Electricity- Amendments to IFRS 9 and IFRS 7 |
1 January 2026 |
| Annual Improvements to IFRS Accounting Standards – Volume 11 |
1 January 2026 |
| IFRS 18 Presentation and Disclosures in Finance Statements |
1 January 2027 |
| IFRS 19 Subsidiaries without Public Accountability: Disclosures | 1 January 2027 |
| Amendments to IFRS 10 and IAS 28 relating to treatment of sale or contribution of assets from investors |
Effective date deferred indefinitely. |
The Group anticipates that these new standards, interpretations and amendments will be adopted in the Group's consolidated financial statements as and when they are applicable and adoption of these new standards, interpretations and amendments may have no material impact on the interim condensed consolidated financial statements.
3. Estimates and assumptions
The preparation of the interim condensed consolidated financial statements require management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.
In preparing the interim condensed consolidated financial statements, the significant judgements made by the management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 December 2024.
4. Financial risk management
The Group's activities potentially expose it to a variety of financial risks as follows:
- Market risk (including currency risk, price risk, cash flow and fair value interest rate risk)
- Credit risk and liquidity risk.
The interim condensed consolidated financial statements does not include all financial risk management information and disclosures required in the annual consolidated financial statement, and should be read in conjunction with the Group's annual consolidated financial statements as at 31 December 2024. The Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at and for the year ended 31 December 2024.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the nine months period ended 30 September 2025
5. Segment information
Operating segment
The Board of Directors is the Group's chief operating decision maker. The Board considers the business of the Group as a whole for the purpose of decision making.
Management has determined the operating segments based on segments identified for the purpose of allocating resources and assessing performance. The Group is organised into three major operating segments: property development (includes sale of properties and leasing activities), properties and facilities management and hospitality related activities.
Management monitors the operating results of its operating segments for the purpose of making strategic decisions about performance assessment. Segment performance is evaluated based on operating profit or loss.
| Property development activities |
Properties and facilities management |
Hospitality | Total | |
|---|---|---|---|---|
| AED'000 | AED'000 | AED'000 | AED'000 | |
| Nine months period ended 30 September 2025 (unaudited) |
||||
| Segment revenues – external |
1,234,950 | 136,198 | 75,873 | 1,447,021 |
| Segment profit | 372,164 | 14,810 | 19,433 | 406,407 |
| Timing of revenue recognition | ||||
| Transferred at a point in time | 83,292 | 13,086 | 8,358 | 104,736 |
| Recognised over a period of time | 1,151,658 | 123,112 | 67,515 | 1,342,285 |
| 1,234,950 | 136,198 | 75,873 | 1,447,021 | |
| Property development |
Properties and facilities |
|||
| activities AED'000 |
management AED'000 |
Hospitality AED'000 |
Total AED'000 |
|
| Nine months period ended 30 September 2024 (unaudited) |
||||
| Segment revenues – external | 847,811 | 118,195 | 74,509 | 1,040,515 |
| Segment profit | 298,418 | 10,647 | 19,395 | 328,460 |
| Timing of revenue recognition | ||||
| Transferred at a point in time | 125,604 | 10,670 | 8,052 | 144,326 |
| Recognised over a period of time | 722,207 | 107,525 | 66,457 | 896,189 |
| 847,811 | 118,195 | 74,509 | 1,040,515 |
Revenue from property development activities, revenue from hospitality, properties and facilities management are recognised at a point in time as well as over time.
Geographic information
There are no assets located outside the United Arab Emirates as at 30 September 2025 (31 December 2024 audited: Nil).
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the nine months period ended 30 September 2025
6. Property and equipment
The property and equipment balance includes buildings, leasehold improvements, furniture and fixtures, office equipment, motor vehicles and capital work in progress.
Management have reviewed the valuations for all three hotels and believe that there is no material variance in the recoverable value as at 30 September 2025.
Land and buildings with a carrying value of AED 464.8 million (31 December 2024- audited: AED 468.7 million) are mortgaged under Islamic finance obligations (Note 14).
During the current period, the Group has reclassified a unit amounting to AED 1.4 million from properties and equipment to properties held for development and sale based on change in use of the unit (31 December 2024- audited: AED 1.6 million) (Note 10).
The Group has a policy of depreciating assets on a straight-line method, at rates calculated to reduce the cost of assets to their estimated residual value. The Group depreciates buildings for 50 years and furniture and fixtures from 5 to 15 years. Furthermore, the depreciation expense of the Group in the current period amounted to AED 14.5 million (30 September 2024- unaudited: AED15 million).
7. Right-of-use assets
The Group has lease contracts for various vehicles and building used in its operations.
Right-of-use assets are depreciated on a straight-line basis as follows:
| Vehicles | 3 years |
|---|---|
| Building | 3 years |
Below are the carrying amounts of right-of-use assets recognised and the movements during the period:
| Buildings AED'000 |
Vehicles AED'000 |
Total AED'000 |
|
|---|---|---|---|
| Cost | |||
| At 1 January 2024 | - | 5,092 | 5,092 |
| Additions during the year | - ──────── |
900 ──────── |
900 ──────── |
| At 31 December 2024 | - | 5,992 | 5,992 |
| Additions during the year | 12,842 ──────── |
331 ──────── |
13,173 ──────── |
| At 30 September 2025 | 12,842 | 6,323 | 19,165 |
| Accumulated depreciation | ──────── | ──────── | ──────── |
| At 1 January 2024 | - | 2,300 | 2,300 |
| Charge for the year | - ──────── |
1,984 ──────── |
1,984 ──────── |
| At 31 December 2024 | - | 4,284 | 4,284 |
| Charge for the year | 2,638 ──────── |
930 ──────── |
3,568 ──────── |
| At 30 September 2025 | 2,638 | 5,214 | 7,852 |
| Net book value | ──────── | ──────── | ──────── |
| At 30 September 2025 | 10,204 ════════ |
1,109 ════════ |
11,313 ════════ |
| At 31 December 2024 | - | 1,708 | 1,708 |
| ════════ | ════════ | ════════ |
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the nine months period ended 30 September 2025
8. Investment properties
| 30 | 31 | ||||||
|---|---|---|---|---|---|---|---|
| Parking | Stores | Retail | Service | September | December | ||
| spaces | Units | units | Apartments | Others * | 2025 | 2024 | |
| Total | Total | ||||||
| AED'000 | AED'000 | AED'000 | AED'000 | AED'000 | AED'000 | AED'000 | |
| Fair value hierarchy | 3 | 3 | 3 | 3 | 3 | ||
| Fair value at the | |||||||
| beginning of the | |||||||
| reporting period/year | 74,198 | 13,899 | 289,591 | 309,593 | 196,112 | 883,393 | 871,367 |
| Additions/adjustments | - | - | 186 | - | 31,404 | 31,590 | 7,466 |
| Transfer (to)/from | |||||||
| properties held for | |||||||
| development and sale | - | (129) | - | - | - | (129) | 4,560 |
| Change in valuation | - | - | - | - | 7,405 | 7,405 | - |
| Fair value at the end of | |||||||
| reporting period/year | 74,198 | 13,770 | 289,777 | 309,593 | 234,921 | 922,259 | 883,393 |
* Includes mix use building, lease building and residential apartments.
All investment properties are located in United Arab Emirates and represent properties held at fair value and any fair value gain/loss under the fair value model is treated in accordance with IFRS Accounting Standards.
The Group has reclassified certain store units amounting to AED 0.1 million (31 December 2024- audited: AED Nil) to properties held for development and sale based on change in use of these units. The Group has not reclassified any units during the current period from properties held for development and sale (31 December 2024- audited: AED 4.6 million) (Note 10).
Investment properties with a carrying value of AED 488.3 million (31 December 2024- audited: AED 487.8 million) are mortgaged against bank borrowings (Note 14).
Management have reviewed the prior year valuations for all of its investment properties and believes that there is no material variance in the fair value of the Group's investment properties as at 30 September 2025 other than what has been disclosed in the above movement. However, the Management will conduct a comprehensive valuation exercise by the end of the year.
9. Trade, contract and other receivables
| 30 September | 31 December | |
|---|---|---|
| 2025 | 2024 | |
| AED'000 | AED'000 | |
| (Unaudited) | (Audited) | |
| Trade and unbilled receivables (refer (i) below) | 1,232,341 | 812,093 |
| Other receivables (refer (ii) below) | 393,326 | 393,790 |
| 1,625,667 | 1,205,883 | |
| Current | 1,201,495 | 980,957 |
| Non-current | 424,172 | 224,926 |
| Total | 1,625,667 | 1,205,883 |
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the nine months period ended 30 September 2025
9. Trade, contract and other receivables (continued)
| 30 September | 31 December | |
|---|---|---|
| 2025 | 2024 | |
| AED'000 | AED'000 | |
| (Unaudited) | (Audited) | |
| i. Trade and unbilled receivables |
||
| Trade receivables | ||
| Amounts receivable within 12 months | 162,757 | 165,271 |
| Contract assets | ||
| Unbilled receivables within 12 months | 645,412 | 421,896 |
| Unbilled receivables after 12 months | 424,172 | 224,926 |
| 1,232,341 | 812,093 |
The above trade receivables are net of provision for impairment amounting to AED 126.4 million (31 December 2024: AED 125.7 million) relating to trade receivables which are past due. All other trade receivables are considered recoverable.
ii. Other receivables
| 30 September | 31 December | |
|---|---|---|
| 2025 | 2024 | |
| AED'000 | AED'000 | |
| (Unaudited) | (Audited) | |
| Advances to contractors | 94,571 | 132,399 |
| Advances to suppliers | 22,625 | 12,432 |
| Prepayments and deferred project cost | 179,751 | 160,465 |
| Others | 105,425 | 97,540 |
| 402,372 | 402,836 | |
| Less: provision for impairment | (9,046) | (9,046) |
| 393,326 | 393,790 |
10. Properties held for development and sale
The properties held for development and sale include land held for future development, properties under development and completed properties held in inventory.
Net realisable value has been determined on the basis of committed sale price if the remaining receivable amount is lower than the current market value of the units booked by customers. For units not yet booked by customers, net realisable value takes into consideration the expected market prices.
During the current period, the Group has reclassified a unit amounting to AED 1.4 million from properties and equipment to properties held for development and sale based on change in use of the unit (31 December 2024- audited: AED 1.6 million) (Note 5).
The Group has reclassified certain store units amounting to AED 0.1 million (31 December 2024- audited: AED Nil) from investment properties based on change in use of these units. The Group has not reclassified any units to investment properties during current period (31 December 2024- audited: AED 4.6 million) (Note 8).
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the nine months period ended 30 September 2025
10. Properties held for development and sale (continued)
Plots of land including under development projects with total carrying value of AED 426.9 million (31 December 2024- audited: AED 444 million) and completed properties with total carrying value of AED 35.2 million (31 December 2024- audited: AED 35.2 million) are mortgaged under Islamic finance obligations (Note 14).
In the current period, the Group has recognised an amount of AED 824.3 million (for the year ended 31 December 2024- audited: AED 852.9 million and for the nine months period ended 30 September 2024 unaudited: AED 588.1 million) included in the profit or loss under "direct costs" against revenue recognised of AED 1,196 million (for the year ended 31 December 2024- audited: AED 1,193.9 million and for the nine months period ended 30 September 2024- unaudited: AED 816.8 million).
For plots of land held for future development and use amounting to AED 795.9 million as at the reporting date (31 December 2024- audited: AED 548.8 million), management is currently evaluating feasibility of the projects and considering alternative viable profitable options as well as various offers from potential buyers.
11. Related party transactions and balances
Related parties include the significant shareholders, key management personnel, associates, joint ventures, directors and businesses which are controlled or jointly controlled, directly or indirectly, by the significant shareholders or directors or over which they exercise significant management influence.
(a) Related party transactions
During the period, the Group entered into the following significant transactions with related parties in the normal course of business and at prices and terms agreed by the Group's management:
| Nine months period ended | Three months period ended | |||
|---|---|---|---|---|
| 30 September | 30 September | 30 September | 30 September | |
| 2025 | 2024 | 2025 | 2024 | |
| AED'000 | AED'000 | AED'000 | AED'000 | |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
| Ultimate majority shareholder | ||||
| Other operating income/finance | ||||
| income | 9,728 | 13,746 | 3,548 | 4,230 |
| Finance cost | (18,747) | (24,183) | (5,720) | (7,553) |
| Borrowings drawdown | 21,296 | - | 927 | - |
| Borrowings repayment | (45,000) | (45,000) | (15,000) | (15,000) |
| Joint venture | ||||
| Other operating income | 2,903 | 709 | 1,661 | 473 |
| Dividend income | 55,000 | 25,266 | - | - |
| Repayment of contributed capital | - | 72,234 | - | 37,500 |
| Associate | ||||
| Dividend Income | 2,000 | - | - | - |
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the nine months period ended 30 September 2025
11. Related party transactions and balances (continued)
(b) Remuneration of key management personnel
| Nine months period ended | Three months period ended | |||
|---|---|---|---|---|
| 30 | 30 | 30 | 30 | |
| September | September | September | September | |
| 2025 | 2024 | 2025 | 2024 | |
| AED'000 | AED'000 | AED'000 | AED'000 | |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
| Salaries and other short-term employees' benefits Termination and post-employment |
8,808 | 10,484 | 2,803 | 3,468 |
| benefits | 347 | 393 | 209 | 92 |
| Board of Directors remuneration* | 4,163 | - | 1,088 | - |
| Board of Directors sitting fees | 380 | 150 | 105 | 50 |
| 13,698 | 11,027 | 4,205 | 3,610 |
*During the current period, the management started to accrue for Board of Directors remuneration for the year ending 31 December 2025 and recognise this remuneration in the interim condensed consolidated statements of profit or loss. During prior periods/years, the management used to recognise this remuneration directly in the interim condensed consolidated statements of changes in equity/consolidated statements of changes in equity.
During the current period, an additional provision for the Board of Directors' remuneration amounting to AED 0.9 million was recognised in the interim condensed consolidated statements of profit or loss pertaining to the previous year based on the final approval of the shareholders in the Annual General Meeting dated 16 April 2025 (during the nine months period ended 30 September 2024-unaudited: AED 1 million in the interim condensed consolidated statements of changes in equity).
(c) Due from related parties comprises
| 30 September | 31 December | |
|---|---|---|
| 2025 | 2024 | |
| AED'000 | AED'000 | |
| (Unaudited) | (Audited) | |
| Current | ||
| Due from ultimate majority shareholder | 1,346 | 1,346 |
| Due from a joint venture | 182 | 2,673 |
| Due from other related parties | 1,410 | 1,410 |
| 2,938 | 5,429 | |
| Less: provision for impairment | (1,366) | (1,384) |
| 1,572 | 4,045 |
Cash and bank balances include amounts held with the ultimate majority shareholder of the Group, bank account balances of AED 717.2 million (31 December 2024- audited: AED 159.5 million) and fixed deposits of AED 160 million (31 December 2024- audited: AED 565 million), at market prevailing profit rates.
Impairment provision
To determine the provision for impairment, management applied certain key assumptions and judgments in accordance with IFRS 9 - Financial Instruments in order to determine the expected credit loss which includes the use of various forward-looking information that could impact the timing and/or amount of recoveries.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the nine months period ended 30 September 2025
11. Related party transactions and balances (continued)
(d) Due to related parties comprises:
| 30 September | 31 December | |
|---|---|---|
| 2025 | 2024 | |
| AED'000 | AED'000 | |
| (Unaudited) | (Audited) | |
| Current | ||
| Due to ultimate majority shareholder | 858 | 196 |
| Due to other related party | 103 | 101 |
| 961 | 297 |
At 30 September 2025, the Group had bank borrowings from the ultimate majority shareholder of AED 401.1 million (31 December 2024- audited: AED 424.8 million), at market prevailing profit rates (Note 14).
12. Cash and bank balances
| 30 September | 31 December | |
|---|---|---|
| 2025 | 2024 | |
| AED'000 | AED'000 | |
| (Unaudited) | (Audited) | |
| Cash in hand | 420 | 493 |
| Current accounts | 1,755,755 | 939,267 |
| Fixed deposits | 223,000 | 805,881 |
| 1,979,175 | 1,745,641 | |
| Less: provision for impairment | (971) | (1,566) |
| Cash and bank balances, net | 1,978,204 | 1,744,075 |
| Less: term deposits with an original maturity greater than three months | (110,000) | (301,000) |
| Cash and cash equivalents | 1,868,204 | 1,443,075 |
Bank accounts include a balance of AED 1,625.9 million (31 December 2024- audited: AED 844.4 million) and fixed deposits of AED Nil (31 December 2024- audited: AED 278 million) at market prevailing profit rates held in escrow accounts.
These Escrow accounts include project escrow accounts where amounts are collected against sale of properties and are available for payments relating to construction of development properties.
Bank accounts balance excludes a balance of AED 110 million (31 December 2024- audited: AED 114.6 million), held in a fiduciary capacity in escrow accounts on behalf and for the beneficial interest of third parties. These Escrow accounts include Community Management Escrow accounts of various properties where service charges are collected from owners and are available for payments for management and maintenance of the properties.
13. Share capital
At 30 September 2025, share capital comprised of 4,375,837,645 shares (31 December 2024- audited: 4,375,837,645 shares) of AED 1 each. All shares are authorised, issued and fully paid up.
The shareholders have approved in the Annual General Meeting dated 16 April 2025 dividends on ordinary shares amounting to AED 218.8 million [AED 5 fils per share] and the same has been paid during the period (2024: AED 175.04 million [AED 4 fils per share]).
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the nine months period ended 30 September 2025
14. Borrowings
| 30 September | 31 December | |
|---|---|---|
| 2025 | 2024 | |
| AED'000 | AED'000 | |
| (Unaudited) | (Audited) | |
| Islamic finance obligations | ||
| Current | 60,000 | 60,000 |
| Non-current | 366,692 | 415,296 |
| Total borrowings | 426,692 | 475,296 |
| AED'000 | ||
| 1 January 2024 | 644,317 | |
| Drawdown | 3,296 | |
| Repayments | (172,317) | |
| 31 December 2024 (Audited) | 475,296 | |
| 1 January 2025 | 475,296 | |
| Drawdown | 21,396 | |
| Repayments | (70,000) | |
| 30 September 2025 (Unaudited) | 426,692 | |
Islamic finance obligations represent Ijarah and other Islamic facilities obtained from Dubai Islamic Bank (P.J.S.C) (ultimate majority shareholder) amounting to AED 401.1 million (31 December 2024: AED 424.8 million) [Note 11(d)], and balance from other local banks. The facilities were availed to finance the properties under construction and working capital requirements
Islamic finance obligations with the ultimate majority shareholder and other local banks carry market prevailing profit rates and are repayable in quarterly instalments over a period of two years to ten years from the reporting date (31 December 2024- audited: two years to eight years). These facilities have AED 477.3 million available for drawdown to the Group.
Islamic finance obligations are secured by mortgages over properties classified under properties held for development and sale amount to AED 462.1 million (31 December 2024-audited: AED 479.2 million) (Note 10), property and equipment amount to AED 464.8 million (31 December 2024-audited: AED 468.7 million) (Note 6) and investment properties amount to AED 488.3 million (31 December 2024-audited: AED 487.8 million) (Note 8).
15. Advances from customers
Advances from customers comprise of payments received from sale of properties. The revenues have not been recognised in the interim condensed consolidated statements of profit or loss, in line with the revenue recognition policy of the Group consistent with the IFRS Accounting Standards.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the nine months period ended 30 September 2025
16. Trade and other payables
Trade and other payables include trade payables in normal course of business and provision relating to claims made by third parties and customers against the Group. This includes legal claim made by customers against the Group for refund of partial payments made to purchase certain property units. In accordance with Law No. 13 of 2008 and its subsequent amendment through Law No. 9 of 2009 applicable in the Emirate of Dubai, the Group had earlier forfeited amounts due to failure of customers to pay the outstanding balances as per the Sale and Purchase Agreement. The provisions are based on management's best estimate after considering the potential cash flows in respect of the claim on a case by case basis.
17. Lease liabilities
| Right of use asset |
Investment property |
30 September 2025 Total |
31 December 2024 Total |
|
|---|---|---|---|---|
| AED'000 | AED'000 | AED'000 | AED'000 | |
| At 1 January | 1,733 | 3,754 | 5,487 | 2,824 |
| Additions during the year | 13,173 | 30,774 | 43,947 | 8,521 |
| Accretion of interest | 422 | 1,209 | 1,631 | 146 |
| Payments made during the year | (4,984) | (9,541) | (14,525) | (6,004) |
| Closing balance | 10,344 | 26,166 | 36,510 | 5,487 |
| Current lease liabilities Non-current lease liabilities |
18,502 18,008 |
4,964 523 |
18. Commitments
At 30 September 2025, the Group had total commitments of AED 886.9 million (31 December 2024 audited: AED 795.4 million) with respect to project related contracts issued net of invoices received and accruals made at that date.
19. Contingencies
Contingent liabilities
At 30 September 2025, the Group has contingent liabilities in respect of performance bond and guarantees issued by banks, in the ordinary course of business, amounting to AED 559.6 million (31 December 2024 audited: AED 517.5 million), which mainly includes performance guarantees of AED 542.6 million (31 December 2024- audited: AED 500.1 million) issued to Real Estate Regulatory Authority (RERA) for the projects under development. Also, the Group has contingent liabilities, on behalf of a subsidiary (under liquidation), in respect to guarantees issued by a bank amounting to AED 3.4 million (31 December 2024 audited: AED 3.4 million). The Group anticipates that no material liabilities will arise from these performance and other guarantees.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the nine months period ended 30 September 2025
19. Contingencies (continued)
Legal claims
The Group is also a party to certain legal cases in respect to various potential claims from customers and, where necessary, makes adequate provisions against any potential claims. Such provisions are reassessed regularly to include significant claims and instances of potential litigations. Based on review of opinion provided by the legal advisors/internal legal team, management is of the opinion that no material cash outflow in respect of these claims is expected to be paid by the Group in these legal cases over and above the existing provision in the books of accounts. The Group has elected not to present the complete disclosures as required by IAS 37 "Provision and Contingent Liabilities and Contingent Assets" as management is of the view that since the legal claims are sub-judice and are disputed, therefore this information may be prejudicial to their position on these matters.
Certain other contingent liabilities may arise during the normal course of business, which based on the information presently available, either cannot be quantified at this stage or in the opinion of the management is without any merit. However, in the opinion of management, these contingent liabilities are not likely to result in any cash outflows for the Group.
20. Financial instruments by category
The accounting policies for financial instruments have been applied to the line items below:
| Equity instrument at fair value through other |
|||
|---|---|---|---|
| Amortised | comprehensive | ||
| cost | income | Total | |
| 30 September 2025 (unaudited) | AED'000 | AED'000 | AED'000 |
| Assets as per interim condensed consolidated | |||
| statement of financial position | |||
| Equity instrument at fair value other comprehensive | |||
| income | - | 8,847 | 8,847 |
| Trade, contract and other receivables excluding | - | ||
| prepayments and advances | 1,328,720 | 1,328,720 | |
| Due from related parties | 1,572 | - | 1,572 |
| Cash and bank balances | 1,978,204 | - | 1,978,204 |
| 3,308,496 | 8,847 | 3,317,343 | |
| Liabilities as per interim condensed consolidated | |||
| statement of financial position | |||
| Trade and other payables | 835,625 | - | 835,625 |
| Lease liabilities | 36,510 | - | 36,510 |
| Due to related parties | 961 | - | 961 |
| Retentions payable | 76,730 | - | 76,730 |
| Borrowings | 426,692 | - | 426,692 |
| 1,376,518 | - | 1,376,518 |
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the nine months period ended 30 September 2025
20. Financial instruments by category (continued)
| Equity instrument at fair value through other |
|||
|---|---|---|---|
| Amortised | comprehensive | ||
| 31 December 2024 (audited) | cost AED'000 |
income AED'000 |
Total AED'000 |
| Assets as per interim condensed consolidated statement of financial position |
|||
| Equity instrument at fair value other comprehensive income |
- | 9,978 | 9,978 |
| Trade, contract and other receivables excluding prepayments and advances |
900,587 | - | 900,587 |
| Due from related parties | 4,045 | - | 4,045 |
| Cash and bank balances | 1,744,075 | - | 1,744,075 |
| 2,648,707 | 9,978 | 2,658,685 | |
| Liabilities as per interim condensed consolidated statement of financial position |
|||
| Trade and other payables | 543,785 | - | 543,785 |
| Lease liabilities | 5,487 | - | 5,487 |
| Due to related parties | 297 | - | 297 |
| Retentions payable | 61,426 | - | 61,426 |
| Borrowings | 475,296 | - | 475,296 |
| 1,086,291 | - | 1,086,291 |
The following table presents the Group's financial assets that are measured at fair value, by valuation method:
| Level 1 AED'000 |
Total AED'000 |
|
|---|---|---|
| As at 30 September 2025 (unaudited) Equity instrument at fair value through other |
||
| comprehensive income | 8,847 | 8,847 |
| As at 31 December 2024 (audited) Equity instrument at fair value through other |
||
| comprehensive income | 9,978 | 9,978 |
The carrying value less impairment provision of trade receivables, contract assets, due from related parties, bank balances and long term fixed deposit is assumed to approximate their fair values keeping in view the period over which these are expected to be realised. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments. Other receivables and payables approximate their fair values.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the nine months period ended 30 September 2025
21. Earnings per share
Basic and diluted earnings per share is calculated by dividing the profit after tax for the period attributable to the owners of the Company by the weighted average number of ordinary shares in issue during the period. There were no instruments or any other items which could cause a dilutive effect on the earnings per share calculation:
| Nine months period ended | Three months period ended | |||
|---|---|---|---|---|
| 30 | 30 | 30 | 30 | |
| September | September | September | September | |
| 2025 | 2024 | 2025 | 2024 | |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
| Profit after tax for the period | ||||
| attributable to the owners of the | ||||
| Company (AED'000) |
408,400 | 328,460 | 157,437 | 139,800 |
| Weighted average number of ordinary | ||||
| shares ('000) | 4,375,838 | 4,375,838 | 4,375,838 | 4,375,838 |
| Earnings per ordinary share - Basic | ||||
| and Diluted (Fils) | 9.33 | 7.51 | 3.59 | 3.20 |
22. Income tax expense
On 9 December 2022, the UAE Ministry of Finance released Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (Corporate Tax Law or the Law) to enact a Federal corporate tax (CT) regime in the UAE. The CT regime has become effective for accounting periods beginning on or after 1 June 2023. The Cabinet of Ministers Decision No. 116 of 2022 (widely accepted to be effective from 16 January 2023) specified the threshold of taxable income to which the 0% UAE CT rate would apply, and above which the 9% UAE CT rate would apply. It is widely considered that this would constitute 'substantive enactment' of the UAE CT Law for the purposes of IAS 12, the objective of which is to prescribe the basis for accounting for Income Taxes.
On 23 May 2023, the International Accounting Standards Board (the Board) issued International Tax Reform – Pillar Two Model Rules – Amendments to IAS 12 which clarify that IAS 12 applies to income taxes arising from tax law enacted or substantively enacted to implement the Pillar Two model rules published by the Organisation for Economic Co-operation and Development ("OECD"), including tax law that implements Qualified Domestic Minimum Top-up Taxes. Furthermore, on 31 December 2024, Cabinet Decision No. (142) of 2024 was issued, introducing a Domestic Minimum Top-up Tax in the UAE. This is not yet applicable for the current reporting year, as the Group's consolidated revenue remains below the threshold of €750 million. However, since the Pillar Two rules are applicable to the Ultimate Controlling Party, and the Group is consolidated within its financial statements, the rules are considered applicable to the Group. Accordingly, the Group is currently assessing the potential impact on its consolidated financial statements.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the nine months period ended 30 September 2025
22. Income tax expense (continued)
Amount recognised in the consolidated statement of profit or loss
The major components of income tax expense for the period ended 30 September 2025:
| Nine months period ended | Three months period ended | |||
|---|---|---|---|---|
| 30 September | 30 September | 30 September | 30 September | |
| 2025 | 2024 | 2025 | 2024 | |
| AED'000 | AED'000 | AED'000 | AED'000 | |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
| Current tax expense | 16,856 | 20,327 | (1,766) | 6,381 |
| Deferred tax expense (net) | 2,481 | - | 3,052 | - |
| Income tax expense recognised in the | ||||
| interim condensed consolidated |
||||
| statement of profit or loss | 19,337 | 20,327 | 1,286 | 6,381 |
Tax reconciliation:
| Nine months period ended | |||
|---|---|---|---|
| 30 September | 30 September | ||
| 2025 | 2024 | ||
| (In AED '000) | (In AED '000) | ||
| (Unaudited) | (Unaudited) | ||
| Accounting profit before tax | 425,744 | 348,787 | |
| Share of profit from an associate and a joint venture |
(83,881) | (127,779) | |
| Dividend income | (440) | - | |
| Non-deductible expenses | 880 | 1,528 | |
| Transitional relief under MD 120 |
(126,696) | - | |
| Standard exemption | (750) | (375) | |
| Profit exempt from tax | - | 3,694 | |
| Net taxable profit | 214,857 | 225,855 | |
| Net income tax expense recognised in the interim condensed consolidated statements of profit or loss at United Arab |
|||
| Emirates' statutory income tax rate of 9% | 19,337 | 20,327 | |
| Deferred tax expense (net) | (2,481) | - | |
| Current tax expense |
16,856 | 20,327 | |
| Accounting profit before tax | 425,744 | 348,787 | |
| Effective tax rate | 4.54% | 5.83% |