Buying a Clinic in Dubai: Licence Transfer and Due Diligence
Short answer: Buying a clinic in Dubai means changing the owners on both the trade licence and the DHA facility licence, not just paying for the premises, equipment and goodwill. For a DHA licensed clinic, the facility’s delegated representative applies through Sheryan, DHA gives initial approval, the trade licence is amended with the commercial authority, and the updated licence goes back to DHA. The seller has to clear any pending violations first, and the licence keeps its existing expiry date. In Dubai Healthcare City, the operator applies 30 days before the change.
Last verified: October 2026 against the DHA Sheryan Change Facility Ownership service, the DHA Manual for Licensing Health Facility version 1.2 (effective 30 September 2026), the DHA Sheryan FAQ, the DHCC FAQ and Federal Decree Law No. 33 of 2021.
Key Takeaways
- DHA has a dedicated Change Facility Ownership service with a published average processing time of one working day, but that is the DHA step only, not the whole deal.
- The service is closed to a facility whose licence is expired, cancelled, suspended, revoked or on hold, or that has a pending violation, so regulatory clearance belongs before completion.
- A change of ownership does not extend the facility licence: the new owner inherits the existing expiry date.
- Employment contracts stay valid when the establishment changes form or legal status, but every professional licence and visa still needs checking.
- Insurance network agreements are commercial contracts and no official rule says they transfer automatically, so get each payer’s answer in writing.
Start With What You Are Actually Buying
Before you agree a price, settle the structure. In a share purchase you buy the company that holds the clinic’s licences, along with its history and liabilities. In an asset purchase you buy selected equipment, contracts and goodwill and run them through your own entity, which usually means more licensing work. The choice changes how staff, contracts and tax are handled, so take UAE legal and tax advice before you set completion conditions.
A practical way to plan any deal for buying a clinic in Dubai is to answer three questions separately:
- Will the commercial licensing authority approve and record the new owners?
- Will DHA (or DHCC) approve the facility change?
- Will the contracts that bring in revenue, such as payer agreements and the lease, continue, need consent or end?
How the DHA Ownership Change Works
DHA’s Sheryan service card sets out the steps. The delegated healthcare facility representative submits a Change Facility Ownership request and pays the fee. DHA reviews it and, if it approves, issues initial approval. The applicant then updates the trade licence with the commercial authority and uploads the updated trade licence, showing the new ownership shares, in Sheryan so DHA can amend the facility licence.
| Item | What DHA Publishes |
|---|---|
| Who applies | The facility’s delegated representative, through Sheryan |
| Document | The updated trade licence, after initial approval |
| Average processing time | 1 working day for the DHA service |
| DHA fee to add or remove an owner | From AED 250 to AED 4,000 depending on facility type (changing the local service agent is a separate fee in the AED 1,000 range) |
| Not available when | The licence is expired, cancelled, suspended, revoked or on hold |
The fee above is the DHA service fee only. It is not the cost of the deal: the trade licence amendment, any new owner approvals with the commercial authority, legal and accounting due diligence, professional licence updates and lease charges are all separate, and none of them has a single published price. Most buyers find the advisers’ and authority costs together run well above the DHA fee, so ask for quotes early.
Chapter Eight of the DHA licensing manual adds the rules that matter most to a buyer. DHA can reject the proposed owners (12.3). The Department of Economy and Tourism, or the free zone licensing authority, audits the ownership details (12.4). The validity of the facility licence is not extended by the change (12.5). The facility is not eligible with any pending violation, a payment under appeal, or a licence that is expired, cancelled, suspended, revoked or on hold (12.6). And the existing owner must clear all pending issues and violations before applying (12.7). If the clinic belongs to a DHA facility group, it leaves the group once its ownership changes (15.4), which ends any staff rotation arrangement inside that group.
For other licence changes that often come with a sale, such as a new name or medical director, see our guide to DHA facility licence renewal, amendments and closure.
What Happens to Staff and Their Licences
Article 48 of Federal Decree Law No. 33 of 2021 says employment contracts in force remain valid when the establishment’s form or legal status changes, and the new employer takes responsibility from the date the establishment data is amended with the authorities. That protects continuity, but it does not clean up the records for you.
Reconcile every employee against payroll, MOHRE records, work permits, visas, accrued leave and end of service liabilities, and list part time and locum staff separately. For clinicians, check each person’s licence status, title, employing facility and malpractice cover in Sheryan. DHA’s FAQ is clear that professionals must not practise while the facility licence is inactive. The official sources do not publish a blanket rule that professional licences are cancelled just because the shares change hands, so confirm the live position, especially if the legal entity, facility name or medical director is also changing.
Insurance Contracts, Claims and Receivables
For most clinics, insurance is where the value sits. Payer and TPA agreements are commercial contracts, and neither DHA nor DHCC says they transfer automatically. Read each one for change of control, assignment, notice and recredentialing clauses, and ask every payer to confirm in writing whether the agreement and provider code continue.
Then test the receivables. Match billed revenue to remittances and bank receipts, age the claims by payer and sample paid, rejected and resubmitted claims. The sale agreement should say who keeps collections for visits before completion and who carries later rejections, refunds and audit recoveries. Our insurance and revenue cycle guide explains how the Dubai claims chain works.
A Due Diligence Checklist for Buying a Clinic in Dubai
| Area | What To Check |
|---|---|
| Corporate | Legal entity, shareholders, beneficial ownership, authority to sell and any security over shares or assets |
| Licences | Trade licence, DHA or DHCC facility licence, category, specialties, expiry dates and status |
| Regulatory | Inspections, corrective actions, complaints, violations, appeals and proof they are closed |
| Clinical Staff | Medical director, professional licences, privileges, malpractice cover and CPD |
| Employees | Contracts, payroll and WPS history, leave, gratuity accruals, permits, visas and disputes |
| Revenue and Claims | Bank receipts, VAT and tax records, remittances, aged receivables, rejection reasons and patient packages |
| Contracts | Payers, labs, suppliers, waste, maintenance, software and equipment finance, including consent rights |
| Premises | Lease, Ejari, permitted use, assignment or change of control clause, landlord consent and renewal |
| Facility | Approved layout against the actual layout, equipment ownership and maintenance records |
Turn what you find into completion conditions: regulatory clearance, landlord consent, payer confirmations and fixing licence discrepancies. Larger risks can be handled through a price adjustment, retention, escrow or indemnity drafted by your lawyers.
The DHCC Route Is Different
A clinic in Dubai Healthcare City sits under the DHCC free zone framework. DHCC’s FAQ says the licensee must submit an application 30 days before any change, including ownership, and its Companies Registry amends the commercial licence for share transfers. Operators must hold a valid commercial licence at all times. The FAQ does not publish a document list, fee or processing time for an ownership change, so confirm the route with DHCC before signing an unconditional agreement. Our DHCC clinic licence guide covers the wider framework.
Frequently Asked Questions.
Can a DHA clinic licence be transferred to a new owner?
Yes, through DHA’s Change Facility Ownership service in Sheryan. DHA gives initial approval, the trade licence is amended with the commercial authority, and the updated trade licence is uploaded so DHA can amend the facility licence.
How long does a DHA ownership change take?
DHA publishes an average of one working day for its own service. No single timeline is published for the whole purchase, and the trade licence amendment, landlord consent, staff updates and payer confirmations all add time.
Does the clinic get a new licence term after the sale?
No. The DHA manual says the validity of the facility licence is not extended through a change of ownership, so check the renewal date during due diligence.
Do employees stay with the clinic after a sale?
Article 48 of the UAE Labour Law keeps employment contracts valid when the establishment’s form or legal status changes, with the new employer responsible from the official data amendment. Each employee’s records still need checking.
What can block a DHA ownership application?
A pending violation, a payment under appeal, or a facility licence that is expired, cancelled, suspended, revoked or on hold. The existing owner must clear pending issues before applying.
Where This Comes From.
How OzaniX Partners Can Help.
Our M&A and Expansion team supports owners and investors who are buying a clinic in Dubai: we organise the due diligence file, reconcile the claims, payroll and staff licence records, map the DHA or DHCC steps with our Licensing and Regulatory team, and turn open points into a practical completion plan. Legal and tax documents stay with your UAE lawyers and tax advisers, and we work alongside them.
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