Dubai-listed Mashreq recorded a fall in net profits last year owing to the introduction of the UAE Domestic Top-Up Tax.
Net profit fell by 23% (AED 6.8B) in 2025, compared to AED 8.9B in 2024. Tax expenses also increased to AED 1.3B (2025) from AED 868M (2024) explaining the 23% YoY fall in net profit despite overall success measured by other indicators.
Liquidity & Asset Management Win
Mashreq grew customer loans by 32% YoY whilst increasing total assets by 25% to AED 335B as Mashreq scaled up digitalisation and captured capital inflows.
The latest results reflects the implications of higher government indirect taxation affecting high-value multi-national corporations.
UAE Top-Up Tax Introduced
The UAE introduced a top-up tax for large firms operating in the UAE with annual consolidated revenues equal to or exceeding 750M in two of the last four fiscal years. The law became effective since 1 January 2025.
It was intended to serve as a supplementary tax to the existing corporation tax regime in the UAE. The UAE has a 0% corporation tax rate for taxable income up to AED 375, 000 and a 9% tax rate for incomes exceeding that threshold.
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