A 3.5-magnitude earthquake was recorded in the UAE during the early hours of Friday, August 8, 2025, the National Centre of Meteorology (NCM) announced.

According to the NCM, the quake struck at 12:00 a.m. UAE time in Al Sila’a, Abu Dhabi, at a depth of three kilometres.

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The tremor was mildly felt by some residents but caused no damage or impact, the centre confirmed.

Aramex reported group revenues of Dhs3.06bn for H1 2025, marking a 1 per cent year-on-year increase as strong performance in domestic and regional logistics offset continued declines in international express shipments.

The logistics and transportation company noted that customer behaviour is shifting towards regional and local solutions, a trend that has reshaped its business mix.

Domestic Express revenues rose 13 per cent year-on-year in H1, Logistics jumped 22 per cent, and Freight Forwarding increased 8 per cent, while International Express revenue dropped 15 per cent over the same period.

Profitability squeezed by product mix shift

The shift in demand came with pressure on profitability. Gross profit fell 6 per cent to Dhs 694m, and the group’s gross profit margin narrowed to 23 per cent from 24.4 per cent a year ago. International Express, a traditionally high-margin business, saw its gross profit drop by Dhs83m, offsetting gains in Domestic Express (+Dhs8m), Freight (+Dhs9m), and Logistics (+Dhs22m).

Group EBIT (earnings before interest and taxes) declined 45 per cent to Dhs 77m in H1 2025. Net profit came in at Dhs8m for the half-year, a sharp fall from Dhs49m in the same period last year. Aramex pointed to a combination of margin erosion and Dhs 26m in one-off costs related to its transformation programme and the acquisition of Q Logistics.

Excluding these exceptional items, normalised EBIT for H1 2025 stood at Dhs 95m, down 32 per cent year-on-year, while normalised net income was Dhs33m, down 34 per cent.

ADQ becomes majority shareholder

The company also confirmed that as of July 25, it became a subsidiary of Abu Dhabi’s ADQ, following the regulatory approval of ADQ’s acquisition of 63 per cent of Aramex shares through Q Logistics and Abu Dhabi Ports.

“Our H1 2025 results reflect consistent execution and a clear alignment with shifting customer needs,” said acting group CEO Nicolas Sibuet. “While we face margin pressures and a changing product mix, we have taken decisive actions through our Accelerate28 strategy to realign operations and enhance our ability to better serve customers.”

Segment performance: Mixed outcomes

Domestic express: Revenues rose 13 per cent in H1 2025 to Dhs 853m, with gross profit increasing 5 per cent to Dhs 184m.

International express: Revenues dropped 15 per cent to Dhs 1.05bn, and gross profit fell 20 per cent to Dhs 324m.

Freight forwarding: Revenues climbed 8 per cent to Dhs 871m, with stable gross profit margins of 13 per cent, despite geopolitical disruptions. Segment volumes increased across all freight modes.

Logistics and supply chain: Revenues surged 22 per cent to Dhs 261m in H1. Gross profit more than doubled to Dhs 50m, reflecting improved warehouse utilisation and contract wins.

Volume trends reflect market dynamics

Total Express shipment volumes reached 67.6m in H1 2025, up 3 per cent year-on-year. Domestic Express volumes grew 9 per cent to 55.9m shipments, while International Express volumes declined 19 per cent to 11.7m.

Freight shipment volumes also showed growth:

• Air freight rose 8 per cent

• Sea freight (FCL) increased 13 per cent

• Sea freight (LCL) surged 35 per cent

• Land freight (LTL) was up 22 per cent

Q2 results reflected similar pressures. Revenues were flat at Dhs 1.50bn. Gross profit was Dhs 329m, down from Dhs 345m a year ago.

EBIT declined 66 per cent to Dhs16m, and net loss for the quarter stood at Dhs9m. Normalised EBIT and net income for Q2 were Dhs31m and Dhs5m, respectively.

Accelerate28 strategy underway

The Accelerate28 programme, launched in Q1 2025, is central to the company’s transformation. With more than 300 initiatives in progress across four newly defined regions, Aramex expects full EBIT impact by 2028.

The company said it remains committed to investing in long-term capabilities despite near-term profitability constraints.

The outlook

As of June 30, Aramex held Dhs542m in cash, with a debt-to-EBITDA ratio of 3.4x (including IFRS 16 adjustments).

The company said it remains financially positioned to continue its transformation and respond to shifting global logistics dynamics.

Read: How Aramex, Sprinklr are reimagining customer experience with AI

As global tax norms tighten and economic diversification becomes a policy priority across the Gulf Cooperation Council (GCC), family offices in the region find themselves at a strategic inflection point.

The days of operating in low-disclosure, tax-light environments are gradually giving way to a new era of transparency, regulation, and cross-border compliance.

For family offices — guardians of multigenerational wealth and private capital — this shift demands more than passive adaptation; it requires a redefinition of governance, purpose, and geographic footprint.

At the same time, the GCC, and particularly the UAE, are well placed to serve as beacons for the relocation of family offices across the globe. As this trend is slowly starting to form, many family offices are exiting from traditional hubs such as the US, UK, Hong Kong and Singapore, and moving to the GCC, with the large majority choosing the UAE as their new hub.

Here, we explore the key tax developments affecting GCC family offices and the strategies family offices should adopt to navigate this evolving landscape in a fresh perspective.

From low-tax to tax disciplined: A changing fiscal philosophy

Historically, GCC family offices thrived in an environment largely insulated from direct taxation. However, the tides have changed, and the current landscape reflects the GCC’s broader alignment with OECD frameworks such as the Base Erosion and Profit Shifting (BEPS) initiative and the Common Reporting Standard (CRS). As regional economies mature and look to raise non-oil revenue, tax policy is becoming a tool not just of fiscal necessity but of reputational alignment with global best practices.

For family offices, this evolution means that tax neutrality can no longer be assumed — it must be planned for, structured around, and stress-tested regularly. What was once a compliance afterthought is now a strategic priority.
At the same time, a sound tax system aligned with the international best practices and the OECD, together with the efforts that most GCC countries have put in place to provide robust structuring options with Common Law-based courts, can be a blessing in disguise to attract family offices from high-tax jurisdictions.

New operating mindset and readiness

The wave of corporate income tax and substance rules compels GCC-based family offices to examine their entire operating model. The question is no longer just where assets are held, but how and why they are held, and how the services are remunerated.

Specifically, most of the GCC’s corporate tax regimes include transfer pricing rules. These rules provide a framework to ensure that related parties transact with each other on an arm’s length basis. Without these rules, there is a risk that taxpayers could manipulate their transfer pricing to achieve an arbitrary (and unfairly favourable) corporate tax result.

The rules are based on global best practices (for example, the OECD Transfer Pricing Guidelines) and put an emphasis on substance and decision making to ensure profit is booked where value is created and key decisions are made.

For family offices that have traditionally relied on informal arrangements or layered offshore entities, this creates a direct challenge. Inaction may risk unwarranted tax exposure. For example, services from related parties charged at clearly a non arm’s length price, or interest free funding or excessive salaries paid to connected persons. These examples can create significant tax risk and also could require disclosure to the tax authorities under audit.

For instance, a common scenario in the UAE is where a family sets up a DIFC/ADGM Foundation, to hold their UAE Family Office (FO) and SPVs for diversified investments, personal real estate and other personal use assets (cars, yachts, jets).

Common practice dictates that the family would use the personal real estate and assets without paying rent/lease to the SPV/FO, as well as having their employees support the family with concierge services, and house management without any specific remuneration.

However, given the UAE corporate tax and transfer pricing framework, it is critical that these transactions are priced on an arm’s length basis. This would require an analysis of the actual conduct of all the parties, choosing the right transfer pricing method and carrying out the appropriate benchmarking.

On the flip side, those who act early to align their structures with both domestic and international standards can not only mitigate their tax exposure risk but optimise it as well.

Cross-border complexity and global families

GCC family offices are increasingly global in scope, with assets, residences, and beneficiaries spread across continents. This geographical spread brings opportunity — but also friction. Framework divergence between home and host countries, divergent definitions of tax residency, and the extraterritorial reach of regimes like FATCA and CRS can complicate wealth planning.

One area of increasing complexity is the treatment of trust-like structures and foundations, especially when beneficiaries reside in higher-tax jurisdictions like the UK, Canada, the US and European Union countries. These structures may be tax neutral domestically (for example, in the UAE as a family foundation), but its distributions, management structure, and reporting obligations may still trigger tax consequences abroad.

Moreover, the second and third generation beneficiaries, who may be less tied to the region, require planning that anticipates life events — relocation, marriage, inheritance — through a globally coordinated tax lens and a strong governance framework.

On this point, a key factor to consider is how broad and easy to access is a country’s Double Tax Treaty (DTT) network, where for instance within the UAE’s tax treaty network there are nationality-based restrictions to claim DTT benefits.

Navigating with intention

The GCC remains one of the most dynamic and promising regions for private wealth and family offices. Its regulatory evolution reflects the commitment to be aligned with the international best practices and provide a secure platform for individuals and their structures.

Nevertheless, despite the positive outlook, this new landscape demands more, particularly on the tax front. If the ultimate goal is to be new global hub for family offices and private wealth, a simple, straightforward, attractive tax bespoke framework for family offices is required, one to rival and surpass key hubs such as Singapore.

For family offices in the GCC, and those looking at the GCC as their new home, the question is no longer whether the tax environment is changing — it’s how well you’re prepared to navigate it.

Vishal Sharma is the MD and UAE Tax Practice leader, Malcolm Manekshaw is a senior director, Tax, and Tiago Marques is a manager, Direct and International Tax, Private Clients at Alvarez & Marsal Middle East

Ahmad Ali Alwan, CEO of Hub71, is steering Abu Dhabi’s tech ecosystem into a mature, scale-up phase.

Under his leadership, Hub71 welcomed its 16th cohort in February, onboarding 27 startups selected from over 1,300 applications across programs including Access, Hub71+ ClimateTech, and Hub71+ Digital Assets. These startups had collectively raised over $145m (Dhs532m) prior to joining, adding momentum to an ecosystem now home to 357 startups .

Building on this momentum, Hub71 partnered with Google for Startups in May to launch the Google for Startups Accelerator: AI First programme in Abu Dhabi. This accelerator targets AI-focused startups in the Hub71+ AI vertical, offering tailored mentorship, technical support, and access to Google Cloud credits, reinforcing Abu Dhabi’s standing as a rising global AI hub.

Gulf Business recently spoke to Alwan to find out more about Hub71’s and its journey. The conversation revealed his forward-thinking approach and vision, which is focused on transitioning Hub71 from a launchpad for early-stage companies into a vibrant, globally connected ecosystem that nurtures scaleups and tech innovators targetting the MENA region and beyond.

Here are excerpts from our chat.

To start, could you walk us through some key developments at Hub71 and why 2025 is shaping up to be such a pivotal year for the startup ecosystem?

Absolutely. Hub71 was launched in 2019 with the vision of creating a thriving environment for early-stage tech startups to scale from Abu Dhabi. Since then, we’ve built a community of 357 startups. They’ve collectively raised $2.17 billion in funding, generated $1.2bn in revenue, created more than 1,100 jobs, and represent over 20 different sectors.

What sets us apart is twofold. First, the strength of our partnerships — across government, corporates, and investors — that unlock real commercial and strategic value for startups. Second, and personally my favourite part, is our focus on community. Founders here aren’t just building companies, they’re building together, in a shared space with a shared mission.

You mentioned partnerships — can you highlight some recent ones and how they support Hub71’s mission?

One standout is our partnership with Google. Over a year ago, we entered a strategic agreement to bring the Google for Startups programme to Abu Dhabi. The programme was launched in May at Hub71 and 26 startups participated, gaining access to Google’s infrastructure and mentorship to help them build globally competitive AI-led businesses.

Together with Google, we are empowering founders to develop transformative technologies that address real-world challenges

We also benefit from Abu Dhabi’s broader AI positioning. The city has invested heavily in becoming a global AI hub, supported by entities like the Advanced Technology Research Council (ATRC), TII, HPE, AWS, and more. Hub71 plays the role of channeling all this momentum directly into opportunities for our startups.

Among the startups in your ecosystem, are there any standout performers or promising players you’d like to spotlight?

That’s always a tough one — it’s like picking your favorite child. But yes, a few come to mind.

In AI, Base2 is doing incredibly well. They’ve developed an industrial AI suite that helps large enterprises optimise operations for efficiency.

Another is Cambio, which is building its own large language models (LLMs) to power AI agents — think AI-led customer service or call centres. Cambio is also woman-led. Rachel, its CEO, is doing a phenomenal job alongside her co-founders.

Outside of AI, Archireaf is really unique. They use 3D printing to reconstruct coral reefs, helping with blue carbon capture. They expanded from Hong Kong and now operate out of Kizad, with growing investment interest from the region.

Hub71 has launched specialised ecosystems — or ‘Hub71 +’ verticals — in areas like climate tech, AI, and digital assets. Why are these verticals important?

These verticals were born out of a desire to go beyond the traditional role of a tech hub. We wanted to create deep, focused ecosystems that attract global interest and investment into specific sectors.

For example, Hub71+ Digital Assets was one of our first. It’s anchored by ADGM, which has had progressive crypto regulations since 2016, and FAB, which joined to stay close to digital asset developments. Today, we host about 30 to 40 startups in that vertical, supported by a strong partner network.

We took a similar approach with climate tech, especially around COP28, and now with AI. In each vertical, we’re creating pathways for startups to plug into funding, regulation, and commercial traction.

What role does Hub71 play in helping startups expand globally from Abu Dhabi?

We like to say: you don’t just set up in Abu Dhabi, you work from Abu Dhabi to access the world.

The emirate offers progressive regulations, high security, and global connectivity. We tap into that value proposition and channel it into opportunities for our founders. We’ve built over 10 international partnerships that help our startups scale into Saudi, the US, Hong Kong, Japan, and beyond.

From your experience, what separates startups that succeed from those that struggle or fail?

There are three personal and professional principles I often share with founders:

1. Embrace failure. It’s part of the process. Most investors value second-time founders who’ve learned from past experiences.
2. Resilience. The startup journey is never linear. You need to weather the ups and downs.
3. Be the best version of yourself. Learn from others, yes, but stay grounded in your own strengths.

Operationally, one key factor is corporate governance. Many early founders ignore this, but without proper structures in place, it’s tough to scale. Products get you in the door, but governance is what helps you grow sustainably.

And as a leader yourself, what values have helped you navigate your own path?

Those same three values — embracing failure, resilience, and authenticity — have served me well. But I’d add purpose. I feel incredibly fortunate to work at the intersection of innovation, people, and national economic development. That sense of purpose keeps me going.

You mentioned the importance of community earlier. How do you foster collaboration and buy-in within your team?

Two things: active listening and structure.

I’ve trained myself to really listen — not just to what’s said, but what’s unsaid. That presence builds trust and helps align personal priorities with the broader mission.

And while our environment is dynamic and collaborative, structure is critical. It helps steer culture and allows us to work cohesively — though I always leave 10 to 20 percent room for healthy chaos, to keep things fresh and stretch thinking.

What’s next for Hub71? What can we expect in the coming months?

We’re going to double down on unlocking capital access for our startups. Abu Dhabi has abundant capital, and our job is to help startups tap into it.

We’ll also continue refining the city’s value proposition across verticals — AI, climate tech, digital assets — and there will be more to come. Our job is to make sure every global development in these sectors translates into a tangible opportunity for startups within Hub71.

Read: Hub71 startup, Ovasave, raises $1.2m pre-seed round

As mega projects continue to reshape the skylines of the Gulf, legal experts are sounding the alarm on a parallel surge: a rise in complex international construction disputes.

“Projects in the Middle East tend to involve significant costs, multiple stakeholders and new technologies, with highly compressed timelines,” says Cheryl Cairns, head of international construction practice at Trowers & Hamlins. “Given the scale and complexity of mega projects in the region, there is an increased risk of misalignment in work scopes, timelines and responsibilities—all of which can ultimately give rise to disputes.”

According to Cairns, delay and prolongation cost claims are common, often resulting from unclear contracts or improper contract management. She also notes that “drastic and expensive changes in scope of work post-tender” remain a recurring issue.

The cross-border complexity of mega projects

With stakeholders from multiple jurisdictions involved in a single project, resolving disputes becomes a legal balancing act.

Karie Akeelah, a partner in the firm’s construction disputes practice, explains: “Stakeholders from different jurisdictions can have different dispute resolution preferences and legal backgrounds, which add to the complexity of resolving disputes. To ensure neutrality and flexibility, arbitration remains the preferred mode for dispute resolution.”

However, Akeelah warns that arbitration clauses must be drafted with precision. “Where the arbitration clause is broad, there may be situations where a key party relevant to the dispute cannot be joined to the arbitration—or worse, where it is later discovered that a key party did not have capacity to arbitrate.”

She recommends early stakeholder mapping and the inclusion of joinder and consolidation clauses to streamline multiparty proceedings.

Enforcement challenges under the New York Convention

All GCC countries are signatories to the New York Convention, which requires them to enforce foreign arbitral awards. But enforcement isn’t always straightforward.

“Implementation in the region can be challenging due to localised procedural requirements, legal culture and a broad interpretation of ‘public policy’ in some GCC jurisdictions,” says Cairns. “Arbitral awards must not conflict with Sharia principles, existing laws or prior judicial decisions.”

She adds that while there’s a trend toward a narrower application of public policy, enforcement delays remain a risk—making strategic legal navigation essential.

Managing third-party risk in arbitration

One grey area that continues to trip up firms is the involvement of non-signatory third parties in disputes.

“Express and clear contract drafting is key to limiting this risk,” says Akeelah. “Where arbitration clauses are limited, construction firms can consider relying on other legal principles which may bind non-signatories,” including agency, assignment, estoppel, and chain of contracts.

These legal routes are less developed in civil law systems, she says, but principles such as good faith and non-contradictory conduct can provide similar pathways, subject to proper legal advice.

Enforcement strategies in the UAE’s dual legal systems

The UAE offers a unique legal environment for enforcing arbitral awards, with both onshore (civil law) and offshore (common law) systems.

“When enforcing an arbitral award (local or foreign), companies should evaluate the legal frameworks of both onshore and offshore jurisdictions, along with any applicable reciprocal treaties or agreements,” says Cairns. “From a practical point of view, in most cases a party will want to pursue enforcement proceedings before the courts where the assets of the award debtor are located.”

Cairns notes that onshore courts have become increasingly pro-enforcement, especially following the implementation of UAE Federal Law No. 6 of 2018. But procedural awareness remains critical, she says: “It is important for companies to be aware of the applicable procedural timelines and available grounds for challenging enforcement.”

Read: ADGM Courts introduces pro bono mediators panel to support dispute resolution

Drafting smarter contracts to avoid future disputes

Poor planning during the contract phase can lead to years of legal wrangling later. Akeelah advises construction and infrastructure firms to do their due diligence upfront:

• Research relevant jurisdictions before signing
• Draft clear jurisdiction and governing law clauses
• Include multi-tiered dispute resolution mechanisms such as mediation or expert determination

“Such clauses provide a degree of certainty about where and how a party can sue and be sued, thus reducing the risk of parallel proceedings,” she explains.

Preparing for the next wave of construction disputes

To stay ahead of the curve, Cairns recommends proactive dispute avoidance strategies, including:

• Legally sound, comprehensive contract documentation
• Strong project management and stakeholder communication
• Keeping clear digital records for future evidence
• Using legal advisors early to identify risk and conduct merit assessments
• Training teams on notice periods, escalation procedures, and conflict resolution protocols

She also highlights the growing potential of generative AI tools for preparing construction claims: “A key advantage of generative AI is the ability to interpret a user’s queries by machine-reading a collection of documents and creating meaningful outputs such as summaries, outlines, and even first-draft documents.”

To learn more about the application of AI to dispute resolution, here is a recent article by Trowers & Hamlins covering this topic

Growing role of mediation in the UAE and beyond

The UAE is increasingly encouraging out-of-court settlements. “There is an increasing ‘pro-mediation’ approach in the UAE, with recent legislative developments and adoption of government initiatives encouraging mediation,” says Akeelah.

Recent milestones include:

• Federal Decree Law No. 40 of 2023 regulating mediation procedures
• Wasata, an e-mediation platform launched by the Ministry of Justice
• Mandatory mediation training for lawyers by Dubai Legal Affairs Department

Dispute boards are also gaining traction. “A 2024 King’s College London study highlighted their global effectiveness, strong party compliance, and growing calls for an international enforcement framework,” Akeelah notes.

With the construction boom continuing across the Middle East, the region’s legal frameworks are evolving but so are the risks. For contractors, developers, and project owners, the message is clear: legal preparedness and strategic contract design are now as critical as engineering precision or on-time delivery.