With Dubai Chamber of Commerce reporting an 18% more companies joining and the total number of active members reaching 258,318 by the end of 2024, it’s clear that the UAE remains a prime destination for entrepreneurs and investors, despite the recent introduction of a corporate tax regime.
If you’re looking to set up shop in the UAE and wondering how corporate finance works there, you’ve landed on the right page.
In this blog post, we will explore six of the most commonly availed corporate finance services in the UAE. Keep reading!
#1: Financial Advisory & Consulting
Businesses in the UAE turn to financial advisory and consulting services to navigate complex financial decisions with clarity.
The first most critical aspect of financial consulting is business valuation.
A thorough valuation takes into account assets, liabilities, revenue trends, and industry performance and helps owners, investors, and potential buyers understand a company’s true worth. Without an accurate valuation, businesses risk mispricing assets or missing growth opportunities.
For companies considering expansion or consolidation, mergers and acquisitions (M&A) advisory services is the next service that falls under the gamut of financial advisory.
A well-structured M&A strategy allows businesses to maximize value, mitigate risks, and facilitate smooth transitions. Financial advisors conduct market research, identify suitable acquisition targets, and negotiate deal terms. They also undergo legal and financial due diligence to unearth any hidden liabilities or risks that could impact the transaction.
Financial advisors also help with debt restructuring and refinancing to companies struggling with financial obligations. They renegotiate repayment terms, consolidate loans, or secure better interest rates, to help businesses improve their cash flow and maintain liquidity.
#2: Investment & Capital Raising
If you run an early-stage startup, you’ll need private equity and venture capital fundraising to drive expansion and fuel the next phase of growth. These funding sources can provide the necessary capital to scale operations, enter new markets, and accelerate innovation. Locking investment deals requires careful structuring to strike the right balance between ownership and growth, and that’s where expert corporate finance services come in handy.
As businesses mature, many consider going public. But the process is complex and having experienced financial advisors helps iron out the wrinkles. Their IPO advisory and listing support help companies transition to the stock market by preparing financial statements, complying with regulations, and crafting persuasive elevator pitches.
Companies that prefer to raise capital without giving up equity can outsource their debt financing and loan syndication to expert professionals. They’ll secure structured loans or pool multiple lenders and help businesses gain access to substantial funding with more favorable terms, often spreading the risk among multiple financial institutions.
#3: Accounting & Regulatory Compliance
Whether a company is filing tax returns, preparing for an audit, or aligning with international standards, a structured approach to accounting and compliance is necessary to prevent financial setbacks.
In that regard, one of the key areas businesses focus on is IFRS financial reporting. Adherence to International Financial Reporting Standards (IFRS) ensures financial statements are clear, consistent, and comparable across global markets. Companies that follow these guidelines are better able to attract investors and lenders and reduce risks associated with regulatory scrutiny.
Another important aspect is tax advisory and VAT compliance. The UAE’s tax environment is evolving and businesses need to stay ahead to avoid penalties and optimize their tax positions. VAT compliance, in particular, requires detailed record-keeping and accurate filings.
Apart from tax matters, businesses must also prepare for audits. Audit preparation and risk assessment help organizations identify gaps in their financial processes before external auditors step in.
#4: Risk Management & Financial Strategy
Uncertainty is a constant in business, but as Wahaj Siddiqui, Managing Director of Oblique Consult, says, “Risk isn’t something to fear. If you tackle it with a proactive approach and create a well-structured financial strategy, you can easily change uncertainty into opportunity and stay agile, even in unpredictable conditions. Financial experts analyze financial data and stress-test different scenarios routinely to gauge our clients’ exposure, identify potential threats, and immediately take measures to minimize losses wherever possible.”
Beyond risk assessment, treasury management is also essential to stay cash flow positive. Financial advisors create liquidity plans and investment strategies to help businesses meet short-term obligations and suggest ways to optimize how funds are allocated, so that companies can reduce unnecessary financial strain and improve their profitability.
#5: Corporate Structuring & Advisory
When setting up a business in the UAE, one of the first decisions is whether to establish a free zone or mainland company. Each has its own set of benefits depending on your business needs. Free zones offer attractive tax exemptions and full ownership for foreign investors, whereas mainland companies provide the opportunity to do business directly with the local market and government entities.
Most financial advisory firms in the UAE guide businesses through the various aspects of company formation, restructuring, and legal structuring to evaluate their options and choose the structure that aligns with their financial goals and fits both local laws and global standards.
#6: Financial Technology & Digital Transformation
In the UAE, companies are switching to AI-driven financial analytics to streamline operations and make data-driven decisions.
By using artificial intelligence, businesses can analyze vast amounts of financial data in real-time, uncover trends, and make more accurate forecasts. Many financial experts assist companies in integrating AI tools that enhance financial decision-making and reporting capabilities.
In addition to AI, many businesses in the UAE are adopting ERP and accounting software to manage their finances. These systems help organizations integrate various functions, from accounting and inventory management to payroll and procurement. Financial advisors help businesses select and implement the best software solutions tailored to their specific needs.
Final Thoughts
Let’s face it — UAE’s financial landscape is changing rapidly. And the ability to adapt capital structures, manage risks, and optimize financial processes is what will separate long-surviving enterprises from those that fade within the first few years of their inception. Given the market volatility and ever-increasing competition, businesses that embrace expert financial guidance will create a path toward sustainable growth.
