Buying a Restaurant in Dubai: How to Value It (2026)
A restaurant for sale in Dubai is worth what it earns its owner, not what the seller spent fitting it out. The standard method multiplies the owner's yearly earnings by a market multiple, and international sale data shows half of restaurants sell for 1.34–2.53 times those earnings (BizBuySell, US sales 2021–2025). Before you pay anything, check four things: the lease, the licences, the liabilities you inherit, and whether the sales figures match the VAT returns.
Note: There is no public database of Dubai restaurant sale prices. The multiples below come from US transaction data and the worked figures are illustrative. Use them as a starting point, and take legal and accounting advice before you sign.
How Do You Value a Restaurant for Sale?
Step 1: Work out the owner's real earnings
Buyers use seller's discretionary earnings (SDE): net profit, plus the owner's own salary, plus depreciation and genuine one-off costs. It shows what the business would pay one working owner.
| Item | AED / year |
|---|---|
| Net profit (from the accounts) | 120,000 |
| + Owner's salary as manager | 180,000 |
| + Depreciation | 40,000 |
| + One-off repair costs | 15,000 |
| = Seller's discretionary earnings | 355,000 |
Illustrative example.
Step 2: Apply a multiple
Across US restaurants sold between 2021 and 2025, half changed hands at 1.34–2.53 times SDE, and the 2025 average was about 2.25 times earnings and 0.37 times revenue (BizBuySell). On the example above:
| Multiple | Value |
|---|---|
| 1.34× (lower end of the middle half) | AED 475,700 |
| 2.25× (2025 average) | AED 798,750 |
| 2.53× (upper end of the middle half) | AED 898,150 |
As a cross-check, 0.37 times revenue on AED 1.8 million of annual sales gives AED 666,000, inside the range.
Step 3: Adjust for Dubai
Move down the range for a short lease, a rent above 25% of revenue, reliance on one owner-chef, a delivery-app share that eats the margin, or numbers you cannot verify. Move up for a long lease at a fair rent, steady trading history and a team that runs without the owner.
Step 4: Check the asset floor
Fit-out and equipment are worth their resale value, which is usually a fraction of what they cost. A seller who prices the business on "I spent AED 900,000 fitting it out" is pricing their sunk cost, not your future earnings.
What Is Key Money, and Should You Pay It?
Key money is a lump sum paid to the outgoing tenant for the right to take over the premises. It usually reflects the location, a below-market rent or a long lease.
The trap: key money buys the chance to take over a lease, and the lease belongs to the landlord. Before paying any:
- Get the landlord's written consent to transfer or re-let the premises to you
- Confirm the remaining term and what the rent will be at renewal
- Make sure the new tenancy is registered on Ejari in your name
- Check the lease allows food and beverage use and your planned activity
Key money on a lease with eight months left and no renewal commitment is money paid for eight months of trading.
Should You Buy the Company or Only Its Assets?
| Buy the company (shares) | Buy the assets | |
|---|---|---|
| Trade licence, food permit | Stay in place | New ones needed |
| Delivery-app accounts, reviews | Usually continue | Often need re-listing |
| VAT registration | Continues | New registration |
| Past VAT, corporate tax, fines | You inherit them | Stay with the seller |
| Staff gratuity liability | You inherit it | Settled by the seller; staff re-hired |
| Speed | Faster to keep trading | Slower, cleaner |
Many small restaurant deals are asset purchases for exactly the reason in the bold rows. If you buy shares, insist on warranties and an indemnity from the seller for liabilities that arose before the sale.
Calculate the gratuity you would inherit
Under UAE labour law, staff with a year or more of service earn 21 days of basic wage per year for the first five years and 30 days per year after that, on basic salary only (UAE Government portal). A cook on AED 3,000 basic with six years' service carries about AED 13,300 of gratuity. Across a team of fifteen with long service, the total can be a meaningful share of the price. Get a staff list with start dates and basic salaries, and deduct the liability from what you pay.
What Should You Check Before Paying?
The numbers
- Twelve months of POS reports, reconciled to bank deposits and to the VAT returns filed with the FTA. If the seller's figures are higher than the sales declared on the returns, trust the returns.
- Delivery-app statements, to see how much of revenue goes in commission. See how Talabat commission affects margins.
- Food cost and staff cost as a share of net revenue; our UAE restaurant P&L guide shows what healthy looks like.
The premises
- Lease term, rent, service charges and landlord consent
- Equipment condition and the cost of anything that needs replacing in year one
The licences
- Trade licence validity and activity, food permit status, inspection history and any outstanding fines. Our guides to the Dubai food establishment permit and opening a restaurant in Dubai cover what should be in place.
The reputation
- The Google rating trend over twelve months, not just today's number, and how recent reviews describe the food and service.
How Does the Ownership Transfer Work?
For a mainland restaurant, the change of owner is made as a licence amendment with Dubai Economy and Tourism (DET). Expect to provide:
- Passports and Emirates IDs of the outgoing and incoming owners
- An amended memorandum of association, notarised
- The tenancy contract and the landlord's consent
- Any no-objection certificates required for the activity
Alongside DET, plan for a new or updated Ejari, an update to the Dubai Municipality food permit, VAT registration changes with the FTA, and staff visa transfers through MOHRE. Confirm current requirements and fees with DET before signing, and hold the purchase price in escrow until the transfers are complete.
What Do Buyers Most Often Get Wrong?
- Paying for the fit-out. Earnings set the value, not what was spent.
- Trusting the listing's sales figures. Reconcile them to the VAT returns and the bank.
- Ignoring the lease. A great location with a short lease is a short business.
- Forgetting inherited gratuity. On a share purchase, it comes with the company.
- Skipping the profitability test. Run the same checks you would for a new opening; see is a restaurant business profitable in Dubai and how much a restaurant owner earns.
If the numbers do not support the price, opening your own may cost less; compare with our guide to the best areas to open a restaurant in Dubai.