Executive Overview
The business under review is a two-venue complex operating in Arjan, Dubai, and includes the following:
- Ladies Salon
- Gents Salon
Fully operational and profit-generating salon business located in Arjan, Dubai, consisting of two independent units:
- Ladies Salon
- Gents Salon
Both salons operate under one ownership with established staff, daily operations, and a loyal customer base, generating stable and recurring income.
Financial Overview
- Total Annual Revenue: AED 1.85M (VAT-declared)
- Net Annual Profit: ~AED 678K
- Monthly Net Profit: ~AED 58K
- Estimated Payback: ~3.0 – 3.3 years
Business Highlights
- Running business with proven cash flow
- Two independent revenue streams
- VAT-verified income (high transparency)
- Consistent performance despite nearby competition
- Strong operational structure with retained staff
- Immediate takeover possible
Location Advantage – Arjan
Situated in a fast-growing residential community within Dubailand, benefiting from:
- Increasing population density
- Ongoing infrastructure development
- Rising demand for personal care services
The area is aligned with Dubai’s long-term growth plans, supporting sustained business activity and future upside.
Asking Price
AED 2.2M – 2.4M
Opportunity
A turnkey salon business offering immediate income, with additional upside through:
- Operational optimization
- Margin improvement
- Service expansion
Contact us for further details and full financial breakdown.
This is a profitable and operationally stabilized business. Despite direct competition, the complex demonstrates resilience, primarily driven by management execution and employee performance rather than location monopoly.
Location and Area Assessment – Arjan, Dubai
Arjan is a residential and mixed-use community within Dubailand.
Key Features
- Rapid housing transition over the past 3–5 years
- Increasing population density
- Ongoing infrastructure and road improvements
- Growing demand for local retail and service businesses
Strategic Vision (Dubai D33 Economic Agenda)
Under the Dubai D33 Economic Agenda, Arjan is positioned as:
- A medium-density residential center
- A long-term service-based business attraction area
- A district expected to mature significantly between 2030 and 2033
While the area is still under development, long-term fundamentals remain positive. Early establishment, even in the presence of competitors, provides operational resilience.
Business Structure
| Composition | Activity |
| Salon | Ladies Salon |
| Salon | Gents Salon |
| Area | Arjan, Dubai |
| Model | Service-based, walk-in + reservation |
| Competition | Direct close competitors (including adjacent units) |
Despite competition, the business maintains steady income supported by:
- Loyal customer base
- Effective pricing and service mix
- Strong staff retention and operational efficiency
Services Offered
🧔 Gents Salon Services
- Haircuts and styling
- Beard grooming and shaping
- Hair treatments
- Men’s manicure and pedicure (if provided)
💄 Ladies Salon Services
- Manicure and pedicure
- Nail extensions and nail art
- Eyelash services
- Beauty treatments
5. Income Analysis (Based on VAT Returns)
The following revenues are derived from VAT-declared figures, considered the most reliable source.
Annual Income
| Hall | Annual Income (AED) |
| Gents Salon | 1,037,948 |
| Ladies Salon | 817,300.42 |
| Total Revenue Collections | 1,855,248.42 |
6. Operating Expenses
Important Note: Current expenses are not fully supported by official documentation. The figures below are based on management disclosure and operational review.
Ongoing Monthly Expenses (Including Rent and Salaries)
| Hall | Monthly Operating Cost (AED) |
| Gents Salon | 51,750 |
| Ladies Salon | 44,305 |
| Total Monthly Operating Expenses | 96,055 |
Management has also noted a historical average combined cost of approximately AED 85,000 per month. For conservatism, hall-level figures are used in this assessment.
Net Operating Profit (Before Commission and Tax)
Monthly Net Profit
| Hall | Monthly Net Profit (AED) |
| Gents Salon | 34,750 |
| Ladies Salon | 23,803 |
| Total Monthly Net Profit | 58,553 |
Annual Net Profit (Before Adjustments)
| Hall | Annual Net Profit (AED) |
| Gents Salon | 417,000 |
| Ladies Salon | 285,636 |
| Total Annual Net Profit | 702,636 |
8. Adjustments: Commission and VAT
Commission
- AED 12,000 per year per salon
- Total annual commission: AED 24,000
Value Added Tax (VAT)
- VAT at 5% is imposed on revenues
- VAT is already reflected in declared revenues; however, net profitability accounts for VAT leakage
Adjusted Annual Net Profit (After Commission, Pre-Financing)
| Item | Amount (AED) |
| Annual Net Profit (Before Adjustments) | 702,636 |
| Less: Commission | (24,000) |
| Adjusted Annual Net Profit | 678,636 |
9. Return on Investment and Repayment Analysis
Asking Price
- AED 2.2 million – AED 2.4 million
Estimated Repayment Period
| Hall | Estimated Payback Period |
| Critors Barbers LLC (Gents) | ~2 years 8 months |
| Nail Skip (Ladies) | ~3 years 7 months |
| Combined Operation | ~3.0 – 3.3 years |
Competitive Environment
- Direct competitors exist within or around the same building
- Despite this, the salons:
- Maintain stable income
- Generating continuous profit
- Retain customers
Key differentiator: operational execution (staff quality, management stability, service consistency), not location exclusivity.
Key Strengths
- Revenues verified through VAT filings
- Profitable at current scale
- Two independent income streams (ladies and gents)
- Strong ROI compared to service-sector benchmarks
- Location aligned with Dubai D33 growth vision
- Opportunity to improve margins through operational optimization
13. Overall Evaluation
The salon complex represents a profitable and active service business with:
- Approved and verifiable revenues
- Acceptable return on investment (approximately 2.8–3.7 years)
- Exposure to long-term regional growth
- Clear upside through operational improvements
Although cost documentation gaps exist, this is common in SME service businesses and does not negate the underlying liquidity generation.
At the requested valuation range of AED 2.2–2.4 million, the acquisition is financially justifiable provided that:
- Cost normalization is completed post-transaction
- Staff retention is secured
- Lease continuity and operational stability are guaranteed
Conclusion
Based on VAT-declared revenues, the business generates a combined annual income of AED 1,855,248.42 (Gents Salon: AED 1,037,948; Ladies Salon: AED 817,300.42) against total monthly operating expenses of AED 96,055. This results in an estimated monthly net operating profit of approximately AED 58,000.
After deducting annual commissions of AED 24,000, the adjusted estimated annual net profit is AED 678,636, implying a combined payback period of approximately 3.0–3.3 years at the requested price range of AED 2.2–2.4 million, assuming current performance and cost structures remain constant.
