As a result of the economy experiencing an upswing over the past year, there was an increase in transactions and deal values in the first half of 2017. Further, because the United Arab Emirates put its plans to diversify its economy away from a dependency on oil into action, M&A activity outside the oil sector has been bolstered. In particular, there has been growth in the healthcare, education and retail sectors.
Investors seeking to acquire an enterprise must consider the liability arising from a multitude of legal engagements. While the nature and complexity of existing contracts that should be reviewed in legal due diligence may differ considerably depending on the area of business in which the target is engaged, employment relationships will be a significant factor in most corporate transactions. As such, recent amendments to the employment regime are highly relevant to M&A transactions.
Pursuant to an amending law, a company may purchase up to 10% of its own shares for the purpose of resale where the market value of the shares is relative to their book value. However, certain conditions apply.
Including: Joint Ventures; Mergers and Acquisitions; Privatization