Crowe UAE: Navigating Changing Landscape Of Tax, Auditing And Corporate Growth With 40+ Years of Expertise

Establishing a business in the UAE requires navigating a complex regulatory landscape, including tax obligations and industry-specific regulations. Ensuring compliance with these laws from the outset not only reduces potential risks but also strengthens a company’s reputation and operational efficiency, laying a solid foundation for long-term success.

Within this ecosystem lies the auditing and tax consulting sector that help business navigate through the complexities. It is a demanding field, particularly in a compliance-driven country like the UAE. Among the firms that have thrived in this environment, Crowe UAE stands out with a legacy spanning four decades. Established in 1981, the firm has grown into one of the most trusted advisory and auditing firms, guiding both local and international businesses through the complexities of UAE's financial landscape.

OneArabia.me had the opportunity to speak with Saad Maniar, Senior Partner at Crowe Mak Limited located centrally in Dubai International Financial Centre, about the firm's journey, the evolving tax regulations in the region, and the broader economic outlook. More insights from the interview below:

Crowe has been operating in the UAE for over 40 years. Can you share how the firm started and where it stands today?

The firm was founded by Dr. Khalid Maniar in 1981. Originally from India, he was working in the UK at the time. However, due to personal reasons, he sought a different environment and saw potential in the UAE. He initially managed a UK-based client in Dubai, and upon visiting, he found the region promising and decided to establish his practice here.

What started as a one-man operation has grown into a firm with over 500 employees across the UAE. We are also part of the Crowe Global Network, one of the top 10 accounting networks worldwide, with a global history spanning over 100 years.

The UAE has introduced 15% corporate tax on multinational companies. How does this compare to previous tax policies?

Until recently, the UAE was widely regarded as a tax-free jurisdiction. However, this wasn't entirely accurate, as corporate taxes already applied to specific industries like banking and oil to support federal reserves.

Before June 1, 2023, there was no corporate tax applicable to general trading and service entities. Now, all companies operating in the UAE are subject to taxation except those in free zones that qualify for a 0% tax rate. While this marks a significant shift, it also brings about greater financial discipline and aligns the UAE's tax structure with international standards. The introduction of taxation has enhanced the UAE's credibility on the global stage. Previously, some multinational corporations hesitated to set up headquarters here due to its perception as a tax haven.

Now, with a structured tax system in place, the UAE is attracting more international companies. In the coming years, I anticipate that the UAE could become the regional headquarters for major corporations like Apple and Microsoft. The country still offers one of the lowest corporate tax rates worldwide, making it an attractive base for global enterprises.

Beyond favorable tax policies, the UAE offers a high-quality lifestyle, safety, and world-class infrastructure. Dubai, in particular, is a global aviation hub, with airlines like Emirates, Etihad, FlyDubai, and Air Arabia providing direct connections worldwide.

Additionally, despite a global economic slowdown—especially in Europe—the UAE, Saudi Arabia, and emerging markets in Asia and Africa continue to experience strong economic growth. Dubai is strategically positioned as a gateway to these regions, offering unparalleled business opportunities.

The UAE is on track to establish itself as one of the world's top business hubs, and with the right economic policies in place, we expect even greater growth and transformation in the coming years.

Has there been any business impact due to the introduction of corporate taxes, particularly for SMEs?

Yes, corporate taxes have certainly had implications, especially from a compliance perspective. While there are positive aspects to the changes, such as increased regulation and structure, the negatives are often related to the complexity of compliance. Small businesses now face a more challenging and complex environment. The ease of starting a business has been affected; it's not as simple as it used to be.

Even though companies can be incorporated within two to three days, the process of establishing a physical office, obtaining visas, setting up bank accounts, and registering for VAT and corporate taxes is time-consuming. There are also different regulations for freezones, mainland, and various emirates like Dubai, Sharjah, and Abu Dhabi, making it more complex to navigate. The UAE government is aware of these challenges, and based on my 25 years of experience in Dubai, I'm confident that they will address these issues over time, simplifying the process for businesses in the future.

Given that the UAE is a mature market with many consulting firms, how can businesses find the right tax consultant when setting up a business?

It can be challenging to find a consultant who is both technically competent and genuinely honest. Many smaller businesses are driven by the desire for immediate rewards, often compromising on the quality of services in exchange for lower costs. Some consultants may have ties with specific freezones and push clients towards those zones without fully understanding the client's needs. This can lead to issues down the line when the business realizes it isn't in the optimal location for its operations.

That's when companies come to firms like ours, seeking guidance to rectify the situation. The damage has already been done, and we help them unwind it and find the right solution. Selecting the right firm is crucial, but it's not only a problem on the consultant's side; clients also share some responsibility. Many clients prioritize saving a few dollars in the short term, only to realize later that the cost of rectifying mistakes is far greater than any initial savings.

In the end, businesses should prioritize quality and experience over cost savings when choosing a consultant. The right consultant will ensure the business is set up properly from the start, saving time and money in the long run.

Let's turn to Crowe UAE's expertise. What specific audit services do you offer to both public and private entities in the UAE?

At Crowe, we provide a full range of services, covering everything from company formation to liquidation. We support businesses throughout their lifecycle with services such as auditing, internal audit, risk management, compliance, feasibility studies, corporate advisory, and liquidation.

Crowe is undergoing a digital transformation, including the use of AI in your services. Could you elaborate on that?

We are still in the early stages of our digital transformation journey. However, we've already begun incorporating AI and technology to automate some of our internal processes, particularly around documentation. Given that our work heavily relies on audit documentation and the evidence generated, automating certain processes has helped us improve efficiency and meet tight deadlines. In terms of client-facing services, we're still working on how we can use these technologies to add more value. But we are committed to evolving and enhancing the way we deliver services to our clients.

As a leading global audit hub, how important is client feedback to Crowe? How does it factor into your work?

Client feedback is absolutely critical to us. It's an essential part of our continuous improvement process. We not only value client feedback but also gather input from all our stakeholders, including regulators, banks, and other partners. We actively engage with them to identify gaps in our services and look for practical ways to address those issues. This feedback loop helps us maintain the highest standards and ensures that we're constantly improving the quality of our service delivery.

What are some of the major sectors that Crowe specializes in?

While we cater to a wide range of industries, we have a deep specialization in the financial services sector, which includes banking, insurance, asset management, and financial advisory. This is where our niche expertise lies, and we have a strong track record of supporting businesses in these areas with tailored audit and advisory services.

Fraud, especially in the realm of digital and financial, is a growing concern. How does Crowe deal with this issue?

Fraud prevention is actually one of our key services. We work closely with banks and other financial institutions to investigate fraud cases, particularly those related to employees. As part of our services, we conduct comprehensive background checks on potential hires, including qualification verification, employment history checks, and criminal record checks.

In fact, about 15% of candidates we investigate are found to have lied on their resumes or during interviews, often about their qualifications or work experience. We maintain a list of over 9,000 fake universities globally. We also check home addresses and identify discrepancies that could indicate fraudulent intent.

Additionally, we offer these services as part of due diligence for businesses involved in mergers and acquisitions or other corporate activities. While audits focus on assessing the risk of fraud and evaluating management integrity, we go beyond that, helping clients understand potential fraud risks through our in-depth investigations and background checks.

It sounds like a challenging and evidence-heavy process. How do you manage the complexity?

It is definitely challenging. Fraudsters are often more sophisticated than the regulations and standards we apply. It requires a lot of evidence-based work, and our team applies professional skepticism in every step of the process to ensure we're not missing any red flags. Although detecting fraud isn't the primary responsibility of an auditor, it's part of the international auditing standards to assess the risk of fraud, and we take that very seriously.

Let's talk about sustainability initiatives at Crowe. Could you share your views on corporate responsibility and CSR activities?

At Crowe, we are deeply committed to sustainability, and we have taken steps to ensure that our operations reflect that. For example, we have gone fully digital, eliminating the use of paper files altogether. This shift reduces our environmental footprint and aligns with our goal of being a responsible and sustainable organization.

When it comes to CSR, our initiatives include providing education, food supplies, and housing support to widows, the poor, and deprived communities in countries like Afghanistan, Tanzania, and India. It's a small way for us to give back, but we believe it's everyone's right to have access to basic necessities, and we're happy to contribute where we can.

Moving forward, how do you foresee the future of mergers and acquisitions (M&A) in the UAE, particularly towards 2030?

The M&A landscape in the UAE is still developing and hasn't reached the level of maturity seen in more established markets. However, I do expect it to grow significantly in the coming years. We're witnessing a generational shift—many of the first-generation entrepreneurs are retiring or have already retired, and their children are now stepping into leadership roles.

The younger generation often has very high expectations. They look at global tech giants like Google or Apple and want their businesses to emulate that. When they inherit companies from their parents, they may feel that those businesses are outdated, or not glamorous enough. This leads them to either sell their stake or look for acquisitions, hoping to invest in something that aligns more with their vision.

This shift could drive an increase in M&A activity, as the younger generation seeks more modern, dynamic business opportunities. However, the real challenge comes with their high expectations. Many startups fail because they believe success should happen overnight. But, as we know, true success comes from persistent effort, not quick wins. Only a small percentage of businesses go from zero to a billion-dollar valuation, and that's usually due to a unique vision or stroke of luck.

Speaking of generational differences, can you tell us about your own journey and how you came to Crowe?

I started my career in India, where I graduated in chemistry. However, my interest shifted to accounting after graduation. I moved to the UAE 25 years ago and got qualified as a chartered accountant in the UK. Since then, I've been with Crowe, and it's been an incredible journey. Over the years, I've seen the company grow and evolve, and I am proud of the work we do here.

As for my vision, it's quite ambitious. I want to see Crowe become a fully integrated practice across the Middle East—not just in the UAE but throughout the entire region. We are already present in multiple Middle Eastern countries, but my goal is to foster closer collaboration between the different member firms. If we can work together as one, we'll be able to expand our reach and create more opportunities for everyone involved.

Before we wrap up, could you share any advice with young professionals, particularly those just entering the field?

I mentor students worldwide and often speak at universities. One of my core pieces of advice is for young professionals to remember the importance of integrity, honesty, and continuous learning. Integrity is the foundation of any career—without it, success is impossible.

Second, confidentiality is key. Trust is built when we keep personal and professional matters private.

Third, education doesn't stop with a degree. In fact, it's just the beginning. There is so much more to learn, and continuous education is vital for success.

Fourth, independence is important. Professionals should avoid conflicts of interest and remain objective in their work.

Lastly, professional behavior is essential. Whether you're in an office or elsewhere, the way you present yourself matters. People judge you based on your behavior and appearance, so maintain high standards of professionalism.