Introduction

The United Arab Emirates (UAE) has cemented its position as a global financial and business hub, attracting multinational corporations, sovereign wealth funds, and private equity investors. As of 2023, the UAE recorded M&A transactions worth over USD 55 billion, with Dubai and Abu Dhabi leading the region in deal activity. The country has business-friendly regulations, tax incentives, and strong capital markets

In this evolving environment, valuation and deal advisory services play a crucial role in helping businesses make informed decisions, optimize deal structures, and ensure compliance with local regulations.

The Importance of Valuation Services in the UAE

Valuation is fundamental for financial reporting, M&A transactions, taxation, investment analysis, and dispute resolution. Businesses in the UAE require accurate valuations for various purposes, including corporate restructuring, IPOs, regulatory compliance, and investor negotiations.

The UAE follows International Financial Reporting Standards (IFRS) for financial reporting, and regulatory bodies like the Securities and Commodities Authority (SCA), Dubai Financial Market (DFM), and Abu Dhabi Global Market (ADGM) impose stringent valuation and compliance requirements for listed and private companies.

Key Valuation Approaches in the UAE:

1. Income Approach: Based on projected future cash flows, this method is widely used in sectors such as real estate, hospitality, and oil & gas, which dominate the UAE economy. With Dubai’s real estate market witnessing a 14% annual price appreciation in 2023, accurate valuation is essential for investment decisions.
2. Market Approach: Compares the company to similar businesses in the region, using valuation multiples such as EV/EBITDA, P/E ratios, and sector-specific benchmarks. The average P/E ratio of UAE-listed companies on DFM and ADX is approximately 15x.
3. Asset-Based Approach: Evaluates a company’s net tangible and intangible assets. This approach is relevant for industries such as construction, manufacturing, and logistics, where asset valuation determines financing and investment decisions.

Given the UAE’s rapid economic growth and diversified market, businesses must adopt valuation methodologies that align with sector trends, market conditions, and regulatory guidelines.

Deal Advisory Services: Supporting Strategic Transactions

Deal advisory services in the UAE encompass M&A advisory, due diligence, financial restructuring, and regulatory compliance. With increasing cross-border deals and foreign direct investment (FDI), companies require strategic guidance to navigate complex transactions.

Key Aspects of Deal Advisory in the UAE:

• M&A Advisory: The UAE witnessed a 30% increase in cross-border M&A deals in 2023, with significant activity in technology, renewable energy, and real estate. Our expertise ensures clients successfully negotiate, structure, and close transactions.
• Due Diligence: Conducting financial, operational, and legal due diligence is critical to mitigating risks. The Dubai International Financial Centre (DIFC) mandates strict KYC and AML regulations, making in-depth due diligence an essential part of deal-making.
• Financial Structuring & Modelling: Developing financial models based on economic indicators such as UAE’s 3.9% GDP growth and oil price fluctuations to help businesses optimize capital structures.
• Regulatory Compliance: Ensuring adherence to UAE’s corporate laws, including Federal Decree-Law No. 32 of 2021 on Commercial Companies and free zone-specific regulations.
• Post-Merger Integration: Studies show that over 65% of M&A deals fail due to cultural and operational misalignment. We help businesses streamline integration strategies to maximize synergies.

How We Can Help

As a leading financial advisory firm in the UAE, we provide end-to-end valuation and deal advisory services, ensuring businesses achieve optimal outcomes in a competitive market. Our expertise includes:

• Accurate Business Valuations: Utilizing globally recognized methodologies tailored to the UAE’s economic landscape.
• Strategic M&A Advisory: Identifying investment opportunities, conducting feasibility studies, and executing transactions seamlessly.
• Comprehensive Due Diligence: Assessing financial health, market positioning, and regulatory risks.
• Regulatory & Compliance Support: Navigating DFSA, ADGM, and SCA regulations to ensure adherence to UAE’s corporate laws.
• Post-Transaction Advisory: Supporting businesses with integration strategies to enhance operational efficiency.

Whether you are a startup seeking investment, an established company considering expansion, or an investor evaluating opportunities in the UAE, our team offers specialized advisory services to support your growth and financial success.

Market Trends and Challenges in the UAE

Several emerging trends are shaping the UAE’s deal-making landscape, impacting valuation and advisory services:

• Growth in FDI and Sovereign Wealth Fund Activity: The UAE attracted over USD 22 billion in FDI in 2023, with government-backed investment funds playing a major role in strategic acquisitions.
• Rise of ESG Investments: Sustainability and ESG compliance are becoming critical factors in deal-making, with the UAE committing to net-zero carbon emissions by 2050.
• Digital Transformation & AI in Valuation: The adoption of AI-driven valuation models and data analytics has reduced due diligence time by up to 40%, improving transaction efficiency.
• Regulatory Developments: Enhanced tax transparency and corporate governance laws are increasing the need for expert advisory in financial structuring and compliance.

Conclusion

Valuation and deal advisory services are indispensable in navigating the UAE’s fast-evolving business landscape. Whether executing M&A transactions, financial restructuring, or regulatory compliance, companies need strategic insights and expert advisory to maximize value and mitigate risks.

With the UAE’s continued push toward economic diversification and global investment, staying ahead of market trends, regulatory changes, and technological advancements will be key to sustained business success.

As your trusted financial advisory partner, we are dedicated to helping you unlock value, seize opportunities, and drive sustainable growth. Contact us today to explore how we can support your valuation and deal advisory needs in the UAE.

 

By-

AnBac Advisors