Middle East · AED

Business valuation in the United Arab Emirates

UAE business valuations rely heavily on EBITDA multiples and DCF, with licensing and free zone status shaping what a buyer can actually acquire.

How valuations are quoted locally

UAE businesses are usually priced on EBITDA, and results are reported in UAE dirham (AED).

  • Mainland versus free zone licensing determines who can buy and what activities transfer.
  • Receivables quality and collection cycles are a common source of valuation adjustment.
  • Owner-funded working capital is often unrecorded and must be normalised.

Who buys businesses here

  • Regional groups and family conglomerates
  • International entrants seeking a licensed platform
  • Private investors and family offices

What commonly reduces the price

  • Licence transferability can be worth more or less than the trading goodwill itself.
  • Corporate tax and VAT treatment should be confirmed with a local adviser.

Whichever market you are in, the underlying discipline is the same: normalise earnings, apply several methods, and weight them by how well each fits the business. See our twelve valuation methods for the full detail.

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