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Financial services at the heart

The UAE-UK financial relationship is built on deep historical foundations pre-dating the UAE’s Union in 1971. British banks were among the first international financial institutions to establish operations in the UAE, creating a foundation for cross-border banking relationships that continue today. Investment quickly started to flow in both directions. The financial centres of Abu Dhabi Global Market and Dubai International Financial Centre were built on a UK model, with English Common Law at their core.

Earlier in May, the Lord Mayor of London visited the UAE with a delegation which included representatives from Howden, Aberdeen, KPMG and Guavapay, a global fintech company.  Capital markets and professional services continue to provide a promising area for UK-UAE financial cooperation, with the London Stock Exchange positioned to attract more landmark UAE listings beyond Masdar’s green bonds and ADQ’s multi-billion-dollar offerings. The UAE’s introduction of corporate tax and evolving sustainability requirements increases demand for specialised UK accounting expertise, particularly in ESG reporting and AI-powered financial management. 

Both the UK and UAE are leaders in the fintech revolution with British innovators like Smart, Checkout.com, and Wise engaged in modernising banking solutions throughout the Emirates, with the UK’s fintech expertise complementing the UAE’s digital transformation agenda. 

Valuing a Tech Company in the Middle East

Imagine you have built a successful tech company in the Middle East, offering technology solutions in the UAE and Saudi Arabia. Years of hard work have paid off, and now a big client, a multinational corporation, wants to buy your business.

But how do you decide the value of what you have achieved? This is the dilemma for the owners of this private tech company as they plan to sell the business they have built from scratch.

The Valuation Challenge

Valuing a private company in an emerging market is not easy. Without stock prices or market consensus, it’s a mix of growth potential, regional factors, and market competition. To navigate this dilemma, the owners enlisted KMEC, a trusted advisor for advisory services, to guide them through two contrasting valuation methods: the forward-looking Discounted Cash Flow (DCF) approach, which looks at the company’s future cash potential, and the EBITDA multiple method, which builds on current earnings strength.

With these valuations, the owners must negotiate with a savvy multinational buyer aiming to enhance its capabilities. Should they go with the optimistic DCF, the realistic EBITDA, or a mix of both? The multinational will examine every detail, but the tech company’s strategic advantage might influence the final price.

This case study explores valuation and negotiation in an emerging market, where ambition meets opportunity, and every decision impacts the outcome—a story of strategy, risk, and seeking fair value in a fast-changing tech world

Background

The technology company provided enterprise solutions focused on emerging sectors in the region. It had established a solid presence in the UAE and Saudi Arabia, benefiting from the region’s increasing demand for technology solutions. The firm served a diverse client base, including several large multinational companies.

One of these clients, a multinational corporation, had been a significant customer for years. Impressed by the technology company’s solutions and regional expertise, the multinational expressed interest in acquiring it to expand and build its own in-house capabilities. The owners considered this as a good opportunity to exit the business. However, they needed to establish a fair valuation of the business for negotiations.

The Challenge

Valuing a privately held technology company operating in an emerging market is complex. Unlike public companies with market-driven stock prices, these firms lack a clear benchmark. The valuation had to also take into account the organization’s growth potential in a region undergoing digital transformation, while also factoring the risks of a competitive and fast-changing industry.

To address this, the owners approached KMEC, a business consulting firm specializing in business valuations for companies in the Middle East. The firm was engaged to provide a range of valuations to support the owners in the negotiations it could have with the potential buyer.

Picture this: You are sitting at your desk, sipping your morning coffee, when an urgent email notification pops up in your inbox. Your customer’s data is on sale, along with sensitive contracts and financial records. Customer information is exposed, and regulators step in asking accountability, while the cost of fixing this mess is increasing by the minute. This is the kind of scenario that keeps CFOs up at night-and in today’s world, it’s not just an impossibility. It happens more often than expected, and is a real threat that can materialize anytime.

As a CFO, you are no stranger to handling risk. But cybersecurity? That often feels like a different ballgame-technical, complex, and frankly, a bit overwhleming. You are not alone. Many CFOs struggle to wrap their heads around the digital risks tied to technology, not knowing whether they are meeting regulatory demands, adequately protecting customer data, or ensuring that their suppliers and operations are secure. The stakes are high: one misstep can lead to fines, loss of trust, and inflating costs.

But here is the good news: cybersecurity does not have to be a black box. In fact, it can be one of your most powerful tools for driving efficiency, cutting costs, and gaining a competitive edge as a business. This article will walk you through the common challenges, look at some myths, and give you a clear, actionable plan to make cybersecurity work for you-not against you.

In a landmark reform aimed at enhancing the business ecosystem and reinforcing Dubai’s status as a global investment hub, Dubai Executive Council has passed a resolution permitting Free Zone companies to do business in the Dubai mainland. This change has the potential to open new markets, bring in new business synergies and facilitate more foreign direct investment into the Emirate.

Let us do a deep dive into what the new resolution entails and how it could benefit businesses.

The Resolution No. (11) of 2025: A definite Step Forward

Dubai Executive Council Resolution No. (11) of 2025 permitting Dubai Free Zone entities to expand their business activities to mainland Dubai through the issuance of onshore licenses and activity permits.

The companies registered in Free Zones were restricted from engaging in commercial activities in the mainland which many considered to be regulatory and financial divide that restrained businesses in an increasingly interconnected environment.

The new resolution aims to bridge that gap. Free Zone companies can now engage with the mainland market directly, subject to compliance with Dubai’s regulatory framework, licensing requirements, and sector-specific approvals. This initiative complements with D33 Agenda – the economic vision of Dubai which aims to double the size of economy, which will position Dubai as one of the three global cities for business and innovation.

The Mechanism

Free Zone entities who are looking to take advantage of the new resolution which will be integrating Free Zones and Mainland, may apply for one of the three new types of licenses/permits:

Over the last 50 years, the United Arab Emirates and France have built a remarkably strong and multifaceted partnership, and we are now looking at the future.

UAE is coagulating its standing as one of the promising hubs of startups and scale-ups in the region. According to global level field players, institutions and indicators, the country is in a progressive and promising path enhancing the number of startups. The government is involved in creating an integrated investment environment by introducing favorable business regulations and flexible policies. Programs like Abu Dhabi’s Hub71, Dubai Future Accelerators, and the Sharjah Entrepreneurship Center (Sheraa) provide startups with mentorship, office space, and funding. These initiatives help entrepreneurs connect with global investors and partners, giving them the resources they need to grow.

Recent statistics show that the UAE topped the GCC countries as the leading incubator for startups, with over 8,600 startups registered across the country in the year 2024. The data highlighted that the UAE is leading the region in the fintech startup sector, with over 750 plus companies currently operating in this field.

Reports from the global consulting and research firm, Startup Genome, affirmed that the UAE’s various emirates continue to advance in international rankings, emerging as the fastest-growing startup ecosystems in the region. Abu Dhabi, Sharjah and Dubai are taking the lead by creating incentivised environments of which Abu Dhabi maintains its position as the fastest growing startups ecosystem in the MENA region. Abu Dhabi itself achieved almost USD 6 billion in value during the period of 2021-2024. The report also indicated that early-stage start-up funding amassed to USD224 million, while venture capital funding between the second half of 2021 and 2023 exceeded USD1 billion, driven by the growing activities of startups operating under Abu Dhabi’s global tech ecosystem, Hub71. Abu Dhabi’s startup community continues to grow, driven by Hub71’s dedicated programmes, strategic partnerships, and commitment to innovation, which strengthens Abu Dhabi’s position as a leading and fast-growing global technology hub.

Dubai also strengthened its leadership in creating ecosystems that support start-up growth, ranking at the top of both global and regional startup ecosystem valuations. Dubai ranked first in the Gulf and second in the region in this field. In5, a TECOM Group subsidiary, has supported more than 1,000 startups, raising funding since its inception in 2013, continuing to play a pivotal role in promoting the sustainable economic growth of these companies.

Sharjah holds a global position by making significant contributions to business growth in the UAE, hosting around 60,000 small, medium, and startup companies distributed across its free zones and industrial zones.

The UAE Ministry of Economy has introduced a “Scale-Up Platform” which serves as a one-stop-shop online portal for small and medium-sized enterprises with high growth potential that provides access to products and services designed to enable the scaling of future unicorns. It focuses on five major pillars, namely, digital transformation, global expansion, joint operation and support services, exports promotion and support, and funding.

The future of the UAE’s economy is closely tied to the success of its startup ecosystem. Start-ups will continue to drive innovation, create jobs, and help diversify the economy. Startups will be essential in shaping the next phase of economic growth—one based on creativity, technology, and sustainability.