Business Valuation in Dubai
Dubai is one of the most active regional markets for buying and selling an established business — both local and international buyers show up here. But in this market, a company's structure — mainland or free zone — directly affects how much money the new owner actually keeps after tax, which feeds straight into the valuation itself.
Mainland vs. free zone — why it matters for valuation
Since 2023, the UAE has applied corporate tax: 0% on profit up to AED 375,000 and 9% above that for mainland companies. Free zone companies can keep the 0% rate, but only if they qualify as a Qualifying Free Zone Person — in particular, their core income must come from transactions with other free zone entities or overseas clients; income from mainland UAE clients is taxed at the same 9% rate. For a buyer, that means understanding exactly what share of the target's revenue actually qualifies for 0% and what doesn't — it feeds directly into the post-tax profit they'll actually keep after the deal.
Per UAE Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses ("Corporate Tax Law"), Article 18, and UAE Ministry of Finance guidance.
Currency and reporting
Most Dubai deals are priced in AED, and ValueUp supports AED as a valuation currency — you enter figures in whatever currency you actually keep your books in, no manual conversion needed.
How ValueUp factors in country context
The discount rate (WACC) used in the income approach is built up with a country risk component — it isn't the same for a UAE business as it would be in another jurisdiction. This isn't a market statistic; it's part of the calculation formula, applied the same transparent way to every assessment.
What a buyer checks in Dubai
The 20-factor ValueOS structure is particularly good at catching a problem common in the region: many Dubai businesses run on the owner's personal relationships — with key clients, the landlord, the bank. The Owner Dependency block in the report shows exactly how the business would hold up without you for 90 days — which is the first thing a serious buyer checks.
Common questions
Does ValueUp work for free zone companies?
Yes — you specify the company's structure and tax status in the questionnaire, as part of the input data used for the calculation, same as for any other company.
Is this an official valuation for a DIFC court or regulator?
No. It's an indicative valuation built on the ValueOS methodology, useful for deal prep and negotiation. For court, a regulator, or formal due diligence, you need a valuation from a UAE-licensed valuer.
What currency is the report in?
You choose the currency in the questionnaire — AED or any other.
Related reading
What a business valuation is, the 3 methods behind it, and how ValueUp computes a Business Value Score across 20 factors — no advisor, no waiting.
PricingA one-time $99 payment for the full report — no subscription, no recurring charges
FAQBusiness valuation · 20 factors · 3 methods