UAE: Market Regulator Introduces New Goodwill Valuation Rules for Listed Companies

Gulf News, 14 July 2025: The UAE Securities & Commodities Authority (SCA) has approved new regulations governing how listed companies must account for goodwill in mergers and acquisitions.

The regulatory framework establishes specific valuation principles for goodwill—the premium paid above a company’s net asset value during an acquisition. Under the rules, goodwill can only be recognised when a company is acquired and cannot be created internally.

The new regulations, which classify goodwill as an intangible asset, will affect all publicly listed UAE companies involved in mergers and acquisitions. Several companies, including Gulf Navigation, Multiple Group, and Emirates Driving, have recently been active in corporate acquisitions.

This measure follows recent SCA regulatory initiatives, including new frameworks for social media financial influencers and robo-adviser funds. The authority’s board has also reviewed the implementation of its recently launched financial influencer registration programme.

The regulations require boards of directors, audit committees, and external auditors to follow specific guidelines for goodwill valuation and disclosure to investors.

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UAE: New Media Legislation Enforces Strict Penalties Across Media Activities

Khaleej Times, 3 July 2025: The UAE enforced a new media law designed to regulate media activities, establishing stringent penalties that escalate to fines as high as Dh1 million for violations such as disrespecting religious beliefs and operating without proper licensing.

The law imposes penalties up to Dh1,000,000 for insulting religious beliefs and up to Dh100,000 for any media content violating public morals or spreading destructive ideas. Further fines up to Dh150,000 apply to inciting crimes like murder, rape, or drug abuse.

Disrespecting the UAE’s ruling system, national symbols, or state institutions incurs fines between Dh50,000 and Dh500,000, and content undermining national unity or foreign relations leads to fines up to Dh250,000.

Operating without a licence incurs penalties ranging from Dh10,000 for first-time offences to Dh40,000 for repeat violations. Similar fines apply to expired licences and unapproved changes to licensing conditions.

First-time dissemination of false information attracts a fine of Dh5,000, doubling upon repetition. Organising events like book fairs without permits draws fines of Dh40,000, incrementally increased for repeated offences.

Finally, if a foreign correspondent works without a licence they will receive written warnings, and repeat offences will lead to fines starting at Dh10,000.

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UAE: FTA Issues New Excise Tax Framework for Natural Shortages in Designated Zones

Alvarez and marsal, 26 June 2025: The UAE Federal Tax Authority (FTA) issued Decision No. 6/2025, effective from 1 July 2025, introducing a structured framework for the reporting and management of natural shortages of excise goods within Designated Zones, in line with international tax standards.

FTA has established a detailed framework for managing the natural shortages of excise goods—those occurring due to uncontrollable factors during production, transportation, or storage. The regulation will require businesses to seek pre-approval from the FTA for any natural shortages within a permissible threshold. This threshold must be corroborated by an FTA-approved Independent Competent Entity (ICE), which will conduct assessments of production processes and storage facilities and issue a report that will be valid for up to a year, confirming allowable shortages. When significant changes occur that might affect loss ratios, prompt notification to the ICE will be mandatory.

The new procedural requirements come with rigorous documentation and reporting duties, and businesses will need to maintain comprehensive audit-ready documentation, supported by ICE findings. This includes real-time traceability of excise goods and full compliance with potential FTA inspections. Non-compliance will lead to a risk of excise tax relief being denied and potential penalties.

This decision replaces previous natural shortage procedures, changing the approach from discretion by the FTA to a more systematic approach with obligatory third-party assessments and set deadlines. It will specifically target natural shortages, with other loss types like theft or operational errors remaining under separate guidelines, such as EXTP007.

Businesses affected by these changes should submit pre-approval requests to the FTA, ensure alignment with ICE standards, and update their internal processes accordingly. They should also revisit previous shortage claims to ensure compliance with the newly established criteria.

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