Due Diligence Audit Services
MOE (Ministry Of Economy) Approved Auditors
Due Diligence Audit Services in the UAE
An independent, evidence-based view of what you’re actually getting into, before you sign anything.
Due diligence audit services help businesses, investors, and acquirers evaluate financial, operational, and legal risks before entering into transactions. This process ensures that all critical aspects of a business are reviewed to support informed decision-making and regulatory compliance.
- Experienced due diligence auditors, covering financial, commercial, tax, operational, HR, and legal review
- Independent, evidence-based reporting, giving all parties a clear picture before a transaction is finalised
- UAE-specific regulatory knowledge, spanning mainland, free zone, and cross-border transaction structures
We support organisations in conducting structured due diligence audits to identify potential risks, verify financial performance, and assess overall business viability before investments, mergers, partnerships, or acquisitions.
Our Specialists In Due Diligence Audit Services
Dr. Imad Kutum
Participant - Audit
Jose Varghese – CA
Participant - Audit
Mamdouh Ali
Participant - Audit
Mohamed Zahran
Audit Manager
V Ramakrishnan
Participant - Audit
As an Approved and trusted Audit Firm In UAE, Farahat Co. Offers Below Audit Services:
Why Do Businesses in the UAE Require Due Diligence?
Before committing to any investment, merger, or acquisition, businesses need an accurate and independent view of what they are buying into. In transactions, parties naturally present their strengths, but a due diligence audit provides an objective assessment of the full picture, including risks, liabilities, and potential issues that may not be immediately visible.
The UAE is one of the region’s most active investment markets, with growing opportunities across multiple sectors. In this environment, due diligence is not just a precaution, it is a critical part of responsible decision-making for buyers, sellers, and investors alike.
Who Can Conduct a Due Diligence Audit?
Due diligence audits are carried out by qualified due diligence auditors, financial analysts, and forensic specialists within professional audit and consulting firms. Unlike a standard audit, which focuses on the accuracy of financial statements, a due diligence audit is specifically designed to identify risks, verify financial information, and uncover issues such as undisclosed transactions, data inconsistencies, and potential fraudulent activity.
The findings give all parties a clear, evidence-based understanding of the business before any transaction is finalised, supported by the direct involvement of experienced due diligence auditors throughout the review.
What Does a Due Diligence Report Cover?
A comprehensive due diligence report gives buyers, sellers, and investors the information they need to make sound decisions. Prepared by qualified auditors or financial specialists, the report typically covers:
- Market position: an assessment of the company’s competitive standing, sector performance, and profitability ratios, providing context for the business’s position within its industry.
- Valuation assessment: a review of historical and current financial data, including projections and key ratios such as price-to-earnings multiples and growth indicators, to establish a well-supported valuation.
- Balance sheet analysis: an evaluation of the company’s financial structure, including the debt-to-equity ratio, creditor positions, and the aging of payables and receivables.
- Risk assessment: an analysis of short-term and long-term risks, including performance indicators such as EBITDA and an overall assessment of business sustainability.
Types of Due Diligence Audit Services
Financial due diligence
Financial due diligence is one of the most critical aspects of a due diligence audit, playing a key role in mergers, acquisitions, and investment decisions by evaluating a business’s financial health and performance. This review typically includes assessment of accounting policies, working capital, and operational performance, evaluation of internal and external financial controls, analysis of creditors, debtors, and overall financial position, review of historical and current financial statements, and assessment of the IT systems used for financial reporting.
Commercial due diligence
Commercial due diligence evaluates the market and competitive context a business operates in, going beyond the numbers to assess whether the underlying business model holds up. This includes review of market conditions and sector-specific dynamics, competitor analysis and market positioning, assessment of the product or service offering, and evaluation of customer concentration and demand sustainability.
Tax due diligence
Tax due diligence assesses the tax exposure and implications arising from a proposed transaction. This includes evaluation of historical tax compliance and any outstanding exposures, review of the current tax position across VAT and corporate tax, identification of tax-saving opportunities within the deal structure, and assessment of transfer pricing and related-party transaction documentation.
Operational due diligence
This type of due diligence evaluates how efficiently a company operates and delivers its products or services, including a review of systems, processes, inventory, and operational procedures. It typically involves a strengths, weaknesses, opportunities, and threats analysis of the company, a review of supply and demand trends over recent years, analysis of the product or service to confirm projections and estimate future demand, and assessment of the company’s leadership and management team.
Human resources due diligence
In the UAE, companies must comply with employment laws related to visas, Emirates ID, and employee benefits. HR due diligence evaluates workforce structure, employment contracts, policies, and compliance with UAE labour law.
Legal due diligence
Legal due diligence ensures that a business complies with all applicable laws and regulations in the UAE. Requirements may vary depending on whether the company operates in a free zone or on the mainland, and this review includes identification of current and potential legal risks, review of contracts, agreements, and legal obligations, verification of regulatory compliance and licensing, and assessment of ongoing or pending legal cases.
Our Due Diligence Audit Process
Our due diligence auditors follow a structured, consistent process regardless of the transaction type or the specific combination of due diligence areas involved.
- Planning and scoping: we define the scope, timeline, and information requirements of the review, agreeing what areas of the business need investigation.
- Data collection: we obtain and review the target’s historical financials, recent management accounts, business plans, contracts, and operational information.
- Analysis and verification: we conduct detailed financial, commercial, tax, operational, HR, and legal analysis, depending on the agreed scope.
- Risk evaluation: we quantify and clearly define the business and regulatory risks identified during the review.
- Reporting and recommendations: we deliver a concise, actionable report setting out our findings and practical next steps.
Why Conduct Due Diligence Before Investing in the UAE?
Investing without due diligence means making decisions based on incomplete information. A thorough due diligence audit gives investors and buyers a clear, verified picture of what they are committing to before any agreement is signed.
Key reasons businesses conduct due diligence include:
- Identifying financial risks, undisclosed liabilities, and unreported obligations
- Verifying the accuracy of financial statements, revenue sources, and expenditure records
- Confirming compliance with UAE laws, regulations, and licensing requirements
- Understanding ownership structures, existing contracts, and ongoing commitments
- Detecting fraud, misrepresentation, or weaknesses in governance
- Protecting against unforeseen losses and post-acquisition disputes
- Providing decision-makers with reliable, evidence-based information
A well-conducted due diligence audit reduces uncertainty and gives all parties greater confidence in the transaction.
Cost and Documentation for a Due Diligence Audit
The cost of a due diligence audit in the UAE depends on the size of the business and the complexity of the transaction, increasing for multi-entity structures or cross-border operations. Comprehensive due diligence covering financial, tax, and legal areas involves higher costs than a narrower financial-only review, though clear documentation and organised records can help reduce audit time and overall cost.
Documents typically required for financial due diligence:
- Tax returns and compliance records
- Debt agreements and schedules
- Contracts and legal agreements
- Budgets and financial projections
How to Choose Due Diligence Auditors in the UAE
Choosing the right due diligence auditors is as important as the audit itself. The firm you engage should bring more than financial expertise, it should understand the UAE regulatory environment, the sector you are investing in, and the specific risks relevant to your transaction.
When evaluating due diligence auditors, consider:
- Proven experience conducting due diligence audits across the UAE
- A qualified team covering financial, legal, tax, and operational review
- Strong knowledge of UAE regulations and industry-specific risks
- A track record supported by client references and market reputation
- The ability to deliver customised reports aligned with your transaction objectives
- Transparent pricing and a clearly defined scope of work
- Actionable findings, not just data, but clear guidance on what they mean for your decision
Why Choose Farahat & Co. for Due Diligence Audit Services
Farahat & Co. provides due diligence audit services backed by extensive experience in the UAE market. Our due diligence auditors support businesses involved in mergers, acquisitions, investments, and partnerships by delivering structured analysis and risk-based insights.
- Full-scope coverage: financial, commercial, tax, operational, HR, and legal due diligence under one firm
- UAE regulatory depth: experience across mainland, free zone, and cross-border transaction structures
- Coordinated support: for M&A-specific engagements, our team works alongside our dedicated Acquisition Due Diligence and Vendor Due Diligence specialists
- Established track record: over four decades supporting UAE businesses through complex financial transactions
We assist clients in identifying financial, operational, and legal risks, enabling informed decision-making and smoother transaction processes from initial review through to closing.
