Business valuation in the UAE is needed for: selling a business, bringing in an investor, inheritance planning, divorce proceedings, or applying for a business loan. Here is how UAE businesses are valued and what standards apply.
Common Valuation Methods Used in UAE
EBITDA Multiple: The most common method for UAE SMEs. Valuation = EBITDA × Industry Multiple. UAE SME multiples by sector: Professional services: 3–5x EBITDA. Technology (SaaS): 4–8x ARR. Trading companies: 2–4x EBITDA. Retail: 2–4x EBITDA. Manufacturing: 3–6x EBITDA. Example: a UAE management consultancy with AED 1M EBITDA would typically be valued at AED 3–5M.
Discounted Cash Flow (DCF): Used for businesses with predictable future cash flows. Projects 3–5 years of cash flows and discounts them back to present value using a discount rate reflecting UAE market risk. More common for large businesses and DIFC/ADGM-registered entities being valued for institutional transactions.
Asset-Based Valuation: Used for holding companies, real estate investment companies, or businesses with significant tangible assets. Valuation = Net Asset Value (Fair Market Value of all assets minus all liabilities).
Who Can Perform a UAE Business Valuation?
UAE business valuations are typically performed by: Big Four accounting firms (KPMG, PwC, EY, Deloitte UAE) for large M&A transactions, mid-tier firms (Crowe, BDO, Grant Thornton UAE) for AED 1–50M transactions, and specialist valuation firms for specific asset types (real estate valuers for property, machinery valuers for industrial equipment).
Valuation for UAE Visa Purposes
For UAE Golden Visa via business investment (AED 2M minimum), a valuation by a UAE Ministry of Economy-approved valuator confirms the investment meets the threshold. Approved valuators list: available at economy.gov.ae.