Business Valuation Service UAE — IFRS 13 M&A Transfer Pricing Shareholder Disputes Abdelhamid & Co CPA

Business Valuation Service UAE — IFRS 13, M&A, Transfer Pricing & Court-Ordered Valuations

Quick answer: A business valuation in the UAE is an independent, evidence-based determination of the economic worth of a company, business unit, or equity interest — using internationally recognised methodologies (Income/DCF Approach, Market/Comparable-Multiples Approach, Asset/NAV Approach) within the UAE's legal framework. UAE-compliant independent valuations are mandatory for related-party transactions under Federal Decree-Law No. 47 of 2022 on Corporate Tax (Art. 34), Transfer Pricing documentation under Ministerial Decision No. 97 of 2023, M&A merger plans under Federal Decree-Law No. 32 of 2021 on Commercial Companies (Arts. 281–296), minority squeeze-outs (Art. 168), company liquidations (Arts. 302–317), and court-ordered expert determinations. Abdelhamid & Co — Ministry of Economy Licensed Auditor LC0106-01 | Registry No. 956 | FTA Tax Agent TAN: 30003958 — delivers signed, litigation-ready valuations accepted by the FTA, UAE courts, DIFC, ADGM, and commercial banks.

Abdelhamid & Co Certified Public Accountants & Auditors LLC is fully authorised to practice as a licensed auditor and Tax Agent in the UAE: Ministry of Economy Licence LC0106-01 | Licensed Auditor Registry No. 956 | FTA Tax Agent TAN: 30003958 | Tax Agency TAAN: 20033908 | Emirates Accountants and Auditors Association (EAAA) Fellow No. 124 | International Arab Society of Certified Accountants (IASCA) Fellow No. 1361 | over 25 years of professional experience in UAE valuation, audit, and tax. Our valuation team — holding CPA, CMA, and ACCA credentials — has delivered M&A, TP, impairment, and court-ordered valuations across mainland UAE, DIFC, ADGM, and all major free zones. All valuations are signed by a UAE-licensed auditor and prepared under IFRS 13 and IVS 2022 standards. Learn more about our broader advisory services or about the firm.

Overview — Business Valuation in the UAE

The introduction of Corporate Tax under Federal Decree-Law No. 47 of 2022 has made independent business valuation a routine compliance requirement for UAE businesses — not just an M&A transaction tool. Any related-party transaction must be priced at arm's length (Art. 34), and the Transfer Pricing Local File under Ministerial Decision No. 97 of 2023 must document the valuation method and the arm's-length price for transactions exceeding AED 4 million per category. Where the FTA challenges the pricing, it applies IFRS 13 fair value as its reference standard; a valuation that does not follow the IFRS 13 hierarchy and document all Level 3 assumptions can be rejected outright, triggering a TP adjustment plus penalties up to 300% of understated tax under Cabinet Decision No. 129 of 2025.

Beyond Corporate Tax, valuation is mandated by the Commercial Companies Law for mergers (FDL 32/2021 Arts. 281–296 — report available to shareholders 30 days before the EGA vote), liquidations (Arts. 302–317 — liquidator must realise assets at fair value), and minority squeeze-outs (Art. 168 — court-appointed valuator determines the compulsory acquisition price). For M&A transactions above the Competition Authority threshold under FDL 36/2023, the transaction value is a key input to the mandatory merger notification.

Abdelhamid & Co delivers the full spectrum of UAE business valuations — from straightforward SME TP valuations completed within 2–4 weeks to complex multi-entity group PPA and court-expert assignments — under a structured, auditable methodology accepted by all relevant UAE authorities.

Legal & Regulatory Framework — Business Valuation UAE

  • Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses — Art. 34: all transactions between Related Parties must be conducted at arm's length — i.e., as if the parties were independent and dealing at fair market value; the FTA applies IFRS 13 fair value as the standard for arm's-length pricing in transfer-pricing assessments.
  • Ministerial Decision No. 97 of 2023 on Transfer Pricing: adopts the OECD Transfer Pricing Guidelines; specifies the most-appropriate-method rule (CUP, Resale Price, Cost-Plus, TNMM, Profit-Split, DCF/Income Approach); Local File mandatory for related-party transactions exceeding AED 4 million per category; Master File mandatory for total related-party transactions exceeding AED 40 million; Disclosure Form filed with the CT return.
  • Federal Decree-Law No. 47 of 2022 — Arts. 44–47 (Qualifying Group Transfer Relief): intra-group asset transfers permitted at tax-neutral carrying value where 75% common ownership and 2-year hold conditions are met; if conditions breached within 2 years, deferred gain becomes immediately taxable — the valuation at transfer date is the reference point for computing that gain.
  • Federal Decree-Law No. 32 of 2021 on Commercial Companies — Art. 168: a shareholder holding 90% or more of share capital in an LLC or PJSC may compulsorily acquire the remaining minority shares at a price determined by an independent court-appointed valuator.
  • Federal Decree-Law No. 32 of 2021 — Arts. 281–296 (Merger): the merger plan must include an independent expert valuation of all merging entities; report must be available to shareholders at least 30 days before the extraordinary general assembly vote; directors are personally liable for the accuracy of the valuation disclosed to shareholders.
  • Federal Decree-Law No. 32 of 2021 — Arts. 302–317 (Liquidation): the licensed liquidator must realise all assets at fair value; understating asset values to benefit related parties exposes the liquidator and directors to personal liability under Art. 237; FTA may reassess VAT on deemed supplies at undervalue under FDL 8/2017 Art. 35.
  • IFRS 13 — Fair Value Measurement: defines fair value as the exit price in an orderly transaction between market participants at the measurement date; three-level hierarchy — Level 1 (quoted prices), Level 2 (observable inputs), Level 3 (unobservable / model-based / DCF); highest-and-best-use concept; all Level 3 assumptions (discount rate, terminal growth rate, risk premiums) must be documented; applied by the FTA as the valuation standard for transfer-pricing assessments.
  • IFRS 3 — Business Combinations: goodwill = consideration transferred + non-controlling interest at fair value − fair value of net identifiable assets; all identifiable intangibles (customer relationships, brand, technology, licences) separately recognised at fair value on the acquisition date; goodwill tested for impairment annually under IAS 36, not amortised; Purchase Price Allocation (PPA) required for any business combination.
  • IAS 36 — Impairment of Assets: recoverable amount = higher of Value in Use (VIU) or Fair Value Less Costs of Disposal (FVLCD); goodwill and indefinite-life intangibles tested annually; sensitivity analysis (discount rate ±1%, growth rate ±0.5%) mandatory disclosure under IAS 36 para. 134.
  • Federal Decree-Law No. 36 of 2023 on Regulation of Competition: mandatory pre-merger notification where combined UAE market share exceeds 40% or combined annual UAE revenues exceed AED 300 million; transaction value is a key input to the notification filing; 90 working-day review period.

Key Facts — Business Valuation UAE

  • FTA arm's-length standard: IFRS 13 fair value — Level 3 DCF assumptions (WACC, terminal growth, risk premium) must be fully documented in the TP Local File under MD 97/2023.
  • TP Local File threshold: AED 4 million per related-party transaction category — mandatory documentation of method and arm's-length price under MD 97/2023.
  • TP penalty for under-documented transfers: Up to 300% of understated tax under Cabinet Decision No. 129 of 2025 — plus 9% CT on the imputed income.
  • Merger valuation — shareholder notice: Independent expert valuation report available to shareholders at least 30 days before the EGA vote under FDL 32/2021 Arts. 281–296.
  • Minority squeeze-out threshold: 90% shareholding — court-appointed valuator determines compulsory acquisition price under FDL 32/2021 Art. 168.
  • IFRS 3 goodwill — tax basis: Share deal: goodwill has no tax basis for CT; Asset deal: acquired goodwill has a deductible tax basis equal to the allocated purchase price.
  • IAS 36 sensitivity disclosure: Para. 134 requires disclosure of discount rate and growth rate assumptions and the headroom above carrying value — omission is an audit qualification risk.
  • Competition notification threshold: AED 300 million combined UAE annual revenues or 40% combined UAE market share — pre-notification under FDL 36/2023 before closing.
  • Firm credentials: Ministry of Economy LC0106-01 | Licensed Auditor No. 956 | FTA TAN: 30003958 | TAAN: 20033908 | EAAA Fellow No. 124 | IASCA Fellow No. 1361 | 25+ years UAE experience.

Our Business Valuation Services

1. M&A Transaction Valuation & Purchase Price Allocation

Buy-side and sell-side valuations for mergers, acquisitions, and management buy-outs. We prepare enterprise value and equity-bridge analyses, Purchase Price Allocation (PPA) under IFRS 3 (goodwill, identified intangible assets, deferred tax step-up), and completion-accounts mechanisms. For cross-border transactions, we document UAE CT and VAT consequences of share-deal vs. asset-deal structures including Transfer of Going Concern (TOGC) qualification under VATP017. All reports include an executive summary formatted for board and financing-bank use.

2. Transfer-Pricing Valuation (MD 97/2023)

Independent arm's-length valuations for intra-group asset transfers, IP licences, intercompany loans, and service arrangements that must be documented in the TP Local File under Ministerial Decision No. 97 of 2023. We apply the most-appropriate method — CUP, Resale Price, Cost-Plus, TNMM, Profit-Split, or DCF — per the OECD guidelines adopted by the FTA. Benchmark studies use TP Catalyst, Bureau van Dijk, and S&P Capital IQ databases. All IFRS 13 Level 3 assumptions are documented for FTA audit-readiness.

3. Shareholder Dispute & Court-Ordered Valuation

Expert determinations for minority buy-outs (FDL 32/2021 Art. 168 squeeze-out), SHA deadlock clauses, right-of-first-refusal exercises, divorce proceedings, and estate distributions. Reports are structured to UAE court evidence standards and DIFC/ADGM expert-witness requirements — the signing valuator is available to give evidence under cross-examination and to respond to counter-expert challenges. Arabic-language executive summaries are prepared for mainland UAE court proceedings.

4. Merger & Liquidation Valuation

Statutory valuations required for merger plans under FDL 32/2021 Arts. 281–296 — report available to shareholders 30 days before the EGA vote — and for liquidation asset realisations under Arts. 302–317. We coordinate with the liquidator and legal counsel to ensure valuations are compliant with the liquidation timeline, support FTA clearance, and protect the liquidator from personal liability under Art. 237 for distributing assets at undervalue.

5. IAS 36 Impairment & Goodwill Testing

Annual and trigger-based recoverable-amount assessments for cash-generating units (CGUs), goodwill, indefinite-life intangibles, and IFRS 16 right-of-use assets. We prepare Value in Use (VIU) calculations under IAS 36 and Fair Value Less Costs of Disposal (FVLCD) models, with sensitivity analyses (discount rate ±1%, growth rate ±0.5%) for the mandatory IAS 36 para. 134 disclosure in the financial statement notes. Failing to perform annual goodwill impairment testing is an audit qualification risk that the FTA also flags as a CT-return integrity issue.

6. Start-up & Pre-Revenue Equity Valuation

409A-equivalent valuations for UAE start-ups issuing equity compensation plans, ESOP/VSOP schemes, or preparing for a Series A/B funding round. Methodologies: Berkus Method for pre-revenue; First Chicago scenario-weighted DCF for post-revenue pre-profitability; Option Pricing Model (OPM) for complex, multi-class capital structures. Reports are accepted by DIFC and ADGM fund managers and UAE commercial banks for investment-committee and regulatory purposes.

7. Real-Estate Heavy Business Valuation

For hospitality, retail, and property-holding businesses where real-estate assets dominate enterprise value, we coordinate RICS Red Book-compliant property appraisals with the business cash-flow valuation — producing an integrated NAV plus Income Approach report. UAE VAT Capital Assets Scheme implications (FDL 8/2017 Art. 48, 10-year adjustment period for commercial property) are documented separately for the buyer's and seller's tax advisers, and the IFRS 16 right-of-use lease liability is included in the equity bridge.

Our Valuation Methodology

  1. Engagement definition: Agree the purpose (TP, M&A, court, impairment, liquidation), standard of value (IFRS 13 fair value / fair market value / investment value), valuation date, applicable UAE legal requirements, and reporting format — confirmed in a signed engagement letter before any work begins; conflicts of interest identified and disclosed upfront.
  2. Information gathering: We issue a structured data-request list within 48 hours of engagement: 3–5 years of audited financial statements, management accounts, business plans, related-party schedules, key contracts, IP register, fixed-asset register, and UAE regulatory filings (MoE, FTA registration, free-zone authority). Missing or incomplete data is escalated to management immediately to protect the engagement timeline.
  3. Normalisation & quality of earnings: Strip non-recurring items, related-party management fees at non-arm's-length rates, owner salaries above market, and IFRS adjustments (IFRS 16 right-of-use, IFRS 9 expected credit loss, IAS 19 gratuity accruals, IAS 12 CT provision). Produce a normalised EBITDA series and free-cash-flow build that forms the DCF income basis.
  4. Valuation modelling: Apply at minimum two independent methods (Income + Market or Income + Asset) using auditable Excel workbooks with version control. Discount rate built from UAE risk-free rate (UAE T-bill or USD SOFR + country-risk premium), CAPM beta from a MENA-comparable-company dataset, and company-specific risk premium documented per IFRS 13 Level 3 requirements. All methods reconciled in a concluded-value bridge.
  5. Sensitivity & scenario analysis: Bear / base / bull scenarios with explicit assumption ranges for all material inputs; Monte Carlo simulation for high-uncertainty mandates. All scenarios and sensitivities disclosed in the report body and a summary table, meeting IAS 36 para. 134 disclosure requirements where applicable.
  6. Report issue & expert support: Signed valuation report with executive summary, methodology section, concluded value range, and full supporting schedules. The signing valuator is available for management presentations, FTA TP audit correspondence, or court expert-witness testimony. Report version-controlled and archived for the 7-year retention period required by FDL 47/2022 Art. 55.

When Is a Business Valuation Required in the UAE?

1. Related-Party Asset or IP Transfers

Any transaction between Related Parties must be at arm's length under FDL 47/2022 Art. 34. Without an independent IFRS 13-compliant valuation documented in the TP Local File (MD 97/2023), the FTA can impute fair value, disallow excess deductions, and impose penalties up to 300% of understated tax under CD 129/2025 — plus 9% Corporate Tax on the imputed income. The valuation is the primary evidence of arm's-length compliance; every intra-group asset or IP transfer above AED 4 million per category requires one.

2. Before Signing an M&A Term Sheet

An indicative valuation before the term sheet is signed informs price negotiation, representations and warranties scope, and escrow amounts — and is essential for structuring the deal correctly (share deal vs. asset deal tax analysis under FDL 47/2022 and VATP017). Commissioning a valuation post-signing creates conflicts with the seller's disclosure obligations and removes its usefulness as a negotiation tool. The buyer also needs a valuation to identify IFRS 3 PPA intangibles that will affect future profitability through amortisation and impairment charges.

3. Shareholder Exit Under a Deadlock or Buy-Out Clause

Most UAE shareholders' agreements (SHAs) and the articles of association for LLC companies include call/put option pricing mechanisms, right-of-first-refusal provisions, and deadlock resolution clauses — all of which require an independent valuation at the time of exercise. Without a pre-agreed valuation mechanism or an independent expert determination, the pricing becomes contentious and the clause may be unenforceable, requiring costly UAE court proceedings. Commissioning the valuation at the time of the triggering event protects both parties.

4. Annual Goodwill Impairment Testing

IFRS 3 prohibits goodwill amortisation and requires annual impairment testing at the cash-generating unit (CGU) level under IAS 36. Failing to commission a CGU-level valuation is an audit qualification risk — the external auditor will qualify the opinion if no supportable recoverable amount can be demonstrated. The FTA also treats a missing goodwill impairment test as a Corporate Tax-return integrity issue, since an overstated asset base understates the taxable income bridge from accounting profit.

5. Entering or Leaving a UAE Corporate Tax Qualifying Group

Entities entering or leaving a qualifying group under FDL 47/2022 Arts. 40–47 must record the fair value of transferred assets at the date of group change in order to calculate future taxable gains correctly. Even where the qualifying-group transfer relief allows the transfer at carrying value, an independent valuation at the transfer date establishes the reference price used to compute the deferred gain if the 2-year hold condition is subsequently breached. Absence of this reference valuation leaves the taxable amount open to FTA challenge.

Common Business Valuation Errors in the UAE

1. Applying a UAE-Unadjusted WACC

Using a global WACC derived from developed-market data without adding a UAE/MENA country-risk premium and a size/liquidity discount for private UAE companies typically understates the discount rate by 3–6 percentage points. This inflates the DCF enterprise value — and the related-party transfer price that must be documented in the TP Local File. The FTA can challenge the WACC as not reflecting IFRS 13 market-participant assumptions, triggering a TP adjustment for the entire inflation of value above arm's length.

2. Omitting UAE Corporate Tax from Cash-Flow Projections

Business valuations for pre-June 2023 periods carried no Corporate Tax. Post-June 2023 cash flows carry 9% on taxable income above AED 375,000 under FDL 47/2022. Failing to model the CT step-up in the DCF — or using pre-CT cash-flow history without adjustment — understates future tax outflows and overstates enterprise value. For valuations supporting M&A or TP documentation, the FTA will examine whether the CT position is correctly modelled.

3. Omitting IFRS 16 Lease Liabilities from the Equity Bridge

Enterprise value must be bridged to equity value by deducting net financial debt — which, under IFRS 16, includes lease liabilities on all leases with a term exceeding 12 months. For UAE retail, hospitality, F&B, and logistics businesses with extensive leased premises or vehicle fleets, IFRS 16 lease liabilities can exceed bank borrowings. Omitting right-of-use liabilities from the equity bridge overstates equity value — a material error that is frequently missed in UAE M&A and shareholder-dispute valuations.

4. Using Net Book Value for IP in Intra-Group Transfers

Intangible assets — brand names, internally developed software, customer lists, distribution licences — are typically carried at nil or nominal cost in UAE group company balance sheets after full amortisation. The FTA requires IFRS 13 fair value for all related-party IP transfers under FDL 47/2022 Art. 34. Using net book value (nil) for a transfer of a valuable brand or software platform triggers a TP adjustment equal to the full fair-value differential, plus penalties under CD 129/2025 of up to 300% of understated tax.

5. Missing the IAS 36 Para. 134 Sensitivity Disclosure

IAS 36 para. 134 requires the financial statements to disclose: the key assumptions used in the VIU or FVLCD calculation (discount rate, growth rate, forecast period); the management's approach to determining those assumptions; and the amount by which each assumption would need to change to reduce the recoverable amount to carrying value (headroom sensitivity). Omitting this disclosure is a standalone audit qualification risk and a Corporate Tax-return integrity flag — the FTA views undisclosed goodwill assumptions as an indication that the impairment test was not properly conducted.

Why Choose Abdelhamid & Co for UAE Business Valuation?

  • Ministry of Economy Licensed Auditor — LC0106-01 | Registry No. 956 — signed valuation reports accepted by UAE courts, MoE, DIFC, ADGM, free-zone authorities, and commercial banks.
  • FTA Tax Agent TAN: 30003958 | Tax Agency TAAN: 20033908 — valuation and TP documentation services fully integrated with CT return filing, FTA audit defence, and TP Local File preparation under tax.gov.ae.
  • EAAA Fellow No. 124 | IASCA Fellow No. 1361 — recognised professional standing within the UAE and Arab accounting community.
  • Over 25 years of professional experience in UAE M&A, transfer pricing, impairment, and court-ordered valuations — IFRS 13, IVS 2022, and RICS Red Book standards applied across all asset classes and sectors.
  • IFRS 13 and IVS 2022 compliant — all valuations follow the full IFRS 13 fair-value hierarchy with documented Level 3 assumptions; methodology defensible under FTA TP audit scrutiny and UAE court cross-examination.
  • Rapid turnaround — indicative valuation for M&A negotiations within 5–7 business days; full signed report for standard mandates within 2–4 weeks of complete data receipt.
  • Free initial consultation — we review the mandate requirements, identify the most-appropriate valuation method under MD 97/2023 and IFRS 13, and provide a fixed-fee proposal at no charge.

Frequently Asked Questions — Business Valuation UAE

What valuation methods does the FTA accept for related-party transactions?

Ministerial Decision No. 97 of 2023 on Transfer Pricing adopts the OECD Transfer Pricing Guidelines and requires the most-appropriate method: Comparable Uncontrolled Price (CUP) where comparable uncontrolled transactions exist; Resale Price Method or Cost-Plus Method for distribution or service arrangements; Transactional Net Margin Method (TNMM) for routine functions; Profit-Split for highly integrated or unique-contribution arrangements; and the DCF / Income Approach for unique intangibles or business transfers where no reliable external comparables exist. The FTA can challenge both the method selected and the assumptions applied, and impute an arm's-length price where documentation is absent or inadequate — triggering a CT reassessment plus penalties under CD 129/2025.

How is goodwill calculated in a UAE M&A transaction under IFRS 3?

Under IFRS 3 (Business Combinations), goodwill equals: consideration transferred plus the fair value of any non-controlling interest, minus the fair value of the net identifiable assets and liabilities acquired. All identifiable intangible assets — customer relationships, brand names, technology, licences, non-compete agreements — must be separately recognised at fair value on the acquisition date, even if they were not on the seller's balance sheet. The residual is goodwill, which is tested annually for impairment under IAS 36 rather than amortised. For UAE Corporate Tax: in a share deal, acquired goodwill has no tax basis (no deduction available); in an asset deal, goodwill allocated in the PPA has a deductible tax basis under FDL 47/2022 — a material difference in post-acquisition tax cost.

Is a business valuation required for company liquidation in the UAE?

In practice, yes. Federal Decree-Law No. 32 of 2021 Art. 305 requires the liquidator to realise all assets at fair value and distribute proceeds equitably to creditors. UAE courts and the FTA routinely challenge liquidation distributions where no independent valuation supports the realisation price — particularly for real estate, intellectual property, and inter-company receivables that are prone to undervaluation in related-party liquidations. An independent valuation protects the liquidator and the directors from personal liability under FDL 32/2021 Art. 237 and from FTA reassessment of VAT on deemed supplies at undervalue under FDL 8/2017 Art. 35.

What is IFRS 13 fair value and why does it matter for UAE business valuations?

IFRS 13 defines fair value as the price that would be received to sell an asset (or paid to transfer a liability) in an orderly transaction between market participants at the measurement date. It establishes a three-level hierarchy: Level 1 — quoted prices in active markets (most reliable); Level 2 — observable inputs other than Level 1; Level 3 — unobservable, model-based inputs, including DCF assumptions. The FTA applies IFRS 13 as the standard for fair-value determination in all transfer-pricing assessments under FDL 47/2022 Art. 34 and MD 97/2023. A valuation that does not document all Level 3 assumptions — discount rate composition, terminal growth rate, revenue forecast basis, company-specific risk premium — can be rejected by the FTA, triggering a TP adjustment plus penalties of up to 300% of understated tax under CD 129/2025.

How long does a business valuation take in the UAE?

Timelines depend on mandate complexity and the completeness of data provided. A straightforward SME valuation for TP documentation or a buy/sell negotiation typically takes 2–4 weeks from the date complete information is received. A complex multi-entity group valuation involving IFRS 3 Purchase Price Allocation, court-required format, or multiple business units typically takes 4–8 weeks. For urgent M&A timelines, we can deliver an indicative enterprise-value range within 5–7 business days for preliminary term-sheet negotiations, with the final signed report to follow. All timelines assume timely provision of complete financial information by the client.

Can a business valuation from Abdelhamid & Co be used in UAE court proceedings?

Yes. All valuations are prepared to UAE court evidence standards and signed by a UAE Ministry of Economy-licensed auditor (LC0106-01, Registry No. 956). For DIFC court proceedings, our experts comply with CPR Part 35 expert-witness requirements — including the overriding duty to the court, declaration of independence, and availability for cross-examination. For ADGM courts, we follow ADGM Court Procedure Rules. For mainland UAE federal and emirate-level courts, we prepare Arabic-language executive summaries with certified translations of the full report, and our valuators are available to appear as expert witnesses in court hearings.

What is the difference between enterprise value and equity value in a UAE context?

Enterprise Value (EV) represents the total value of the operating business — the value attributable to all capital providers (equity holders and debt holders combined). Equity Value (value to shareholders) = EV minus Net Financial Debt. In the UAE post-IFRS 16, Net Financial Debt must include lease liabilities recognised under IFRS 16, which are the largest non-bank liability for UAE retail, hospitality, F&B, and logistics businesses. The equity bridge also adjusts for: surplus cash and cash equivalents; non-operating assets (investment properties, land held for sale, related-party loans receivable); contingent liabilities (open FTA audit assessments, pending litigation); and IAS 12 deferred-tax liabilities on revaluation surpluses, accelerated depreciation, and IFRS 16 lease liabilities — each of which can be material in UAE asset-heavy businesses.

Does the UAE require an independent valuation for intra-group asset transfers?

Yes, for Corporate Tax purposes. Federal Decree-Law No. 47 of 2022 Art. 34 requires all transactions between Related Parties to be on arm's-length terms, with the FTA applying IFRS 13 fair value as the arm's-length standard. Ministerial Decision No. 97 of 2023 requires a TP Local File documenting the valuation method and arm's-length price for any Related-Party transaction category exceeding AED 4 million. Even where the qualifying-group transfer relief under Arts. 44–47 permits the transfer at carrying value without immediate tax cost, an independent valuation at the transfer date is best practice — it establishes the reference price used to compute the deferred gain if the 2-year hold condition is subsequently breached.

Contact Our Valuation Team

To commission a UAE business valuation for M&A, transfer pricing, shareholder disputes, impairment testing, or court proceedings, contact us today for a free scoping call:

Abdelhamid & Co Certified Public Accountants & Auditors LLC — Ministry of Economy Licence LC0106-01 | Licensed Auditor Registry No. 956 | FTA Tax Agent TAN: 30003958 | Tax Agency TAAN: 20033908 | EAAA Fellow No. 124 | IASCA Fellow No. 1361

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About the Firm

Abdelhamid M. Abdelhamid — Partner & Managing Director
Ministry of Economy Licensed Auditor (LC0106-01, Registry No. 956) | FTA Tax Agent (TAN: 30003958) | Tax Agency (TAAN: 20033908) | EAAA Fellow No. 124 | IASCA Fellow No. 1361 | Over 25 years of UAE valuation, M&A, audit, and tax experience | FTA Registered Tax Agent | LinkedIn

Last reviewed: 28 April 2026 — updated to reflect Federal Decree-Law No. 47 of 2022 (Corporate Tax Art. 34, Arts. 44–47), Ministerial Decision No. 97 of 2023 (Transfer Pricing), Federal Decree-Law No. 32 of 2021 (Commercial Companies Arts. 168, 281–296, 302–317), Federal Decree-Law No. 36 of 2023 (Competition), Cabinet Decision No. 129 of 2025 (Tax Penalties), IFRS 13 (Fair Value Measurement), IFRS 3 (Business Combinations), and IAS 36 (Impairment of Assets).

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