Thought Leadership

Has the demand for transfer pricing created more specialised firms?

Transfer Pricing was considered a significant value-added advisory service during 2023 and 2024 following the introduction of UAE Corporate Tax. However, from 2025 onwards, it has gradually become part of standard compliance requirements. Most medium and large businesses now already have service providers supporting them in this area, reducing the niche positioning previously associated with transfer pricing services.

Has fee pressure decreased?

Fee pressure continues to remain high in the UAE market. Businesses are currently more focused on essential compliance-related services, while discretionary advisory spending has reduced. Domestic compliance services such as VAT, Corporate Tax filings, bookkeeping, and audit continue to see stable demand, whereas broader advisory mandates have softened in recent months.

Have there been any reforms to strengthen audit quality?

Yes. Regulatory focus on compliance and governance has increased significantly, particularly around Anti-Money Laundering (AML) compliance. Regulators are placing stricter expectations on audit firms and DNFBPs regarding customer due diligence, risk assessments, documentation, and reporting obligations. This has indirectly strengthened overall audit quality and compliance standards across the profession.

How has the conflict in the Middle East affected client demand? Is business shrinking or is there more demand for advisory and restructuring services? Is there any additional support from banks?

As the UAE has not formally entered into any conflict situation, there have been no major force majeure implications or extraordinary banking support measures introduced. However, businesses across several sectors are experiencing cash flow pressures and slower business cycles due to regional uncertainty. While restructuring and cash flow advisory discussions have increased to some extent, there has not yet been a major surge in formal restructuring mandates.

Have there been any significant regulatory developments in the UAE over the last 12 months?

E-invoicing has emerged as one of the most significant upcoming regulatory developments in the UAE. The UAE government is progressing toward mandatory e-invoicing implementation, expected to go live in phases by 2027. This is anticipated to transform VAT compliance, invoice validation, and real-time tax reporting processes for businesses operating in the UAE.

How would you describe the health of the accounting profession in the UAE?

The accounting and advisory industry in the UAE continues to evolve positively. The introduction of Corporate Tax, enhanced AML requirements, ESR transition, and upcoming e-invoicing reforms have significantly increased the importance of finance and compliance functions within businesses. Overall, the profession is becoming more structured, technology-driven, and strategically relevant than ever before.

What are your expectations for the next 12 months? Are there any potentially significant developments in the pipeline?

E-invoicing is expected to have a substantial impact on businesses, particularly in VAT compliance, automation, and system integration. Over the next 12 months, we expect increasing awareness, ERP upgrades, and technology adoption initiatives among businesses. At present, the immediate demand is more visible toward IT implementation partners and ERP providers rather than accounting firms, but over time this is expected to create additional opportunities for tax, audit, and compliance professionals as businesses adapt to the new ecosystem.