Merging for efficiency: Navigating the UAE's legal framework

We are increasingly advising private companies on mergers in the UAE as businesses look to streamline operations to optimize efficiency under the new corporate tax regime

A corporate merger is when two companies come together to form a single entity, usually to increase market share, reduce competition or operate more efficiently by pooling resources and expertise. Businesses merge to expand their footprint, diversify their offerings and enhance their competitive edge in the market. It is typically a strategic move to come together to create a stronger and more complete picture.

Mergers are most often seen in the public company arena. Notable UAE public mergers in recent years include Q Holding’s $7 billion merger in 2023, and the merger of Abu Dhabi Commercial Bank, Union National Bank and Al Hilal Bank in 2019 to create the UAE’s third largest bank. Private company mergers are also on the rise, as businesses streamline operations to optimize efficiency under the new UAE corporate tax regime.

In our report, we discuss the UAE legal regime for mergers and explore the key issues and practical challenges involved. In particular, we look in depth at mergers of onshore limited liability companies and consider how a similar result may be achieved where one of the merging entities is a free zone company.

Download our report