2024-03-14 15:07

Mergers and acquisitions: features of structuring deals in the UAE

The United Arab Emirates has become a global hub for many deals involving Russian businesses, including M&A transactions.

Alexander Kukuev, Managing partner of UPPERCASE LEGAL, commented on the peculiarities of M&A deals in the UAE to the publication Pravo.ru.

In general, the process of conducting M&A deals in the UAE is comparable to mechanisms in other jurisdictions and is largely based on standards inherent to structuring deals under English law, notes Alexander. However, complexities arise during the stage of comprehensive legal due diligence of the counterparty, particularly the selling company.

"Unlike Russia, the UAE lacks a unified registry of legal entities where company licenses and their validity periods are reflected. There are also no public resources reflecting financial reporting or a unified database of legal proceedings. De facto, one can only rely on auditor opinions," commented Alexander Kukuev.

In the UAE, M&A transactions are overseen by the Ministry of Economy, similar to Russia's Federal Antimonopoly Service. Kukuev highlights that in certain sectors, obtaining approval for the deal from specific industry regulators is required, such as the Central Bank of the UAE in the case of the financial sector.

Read more on the Pravo.ru website