100% Foreign Ownership in Mainland Dubai Companies: A Comprehensive Guide​

Dubai has long been recognized as a global business hub, attracting entrepreneurs and investors from around the world. One of the most significant developments in recent years is the UAE government’s decision to allow 100% foreign ownership in mainland companies, eliminating the previous requirement for a local Emirati partner in many sectors. This move has opened up new opportunities for foreign investors looking to establish a presence in Dubai’s dynamic market.​

Understanding the Legal Framework

The shift towards full foreign ownership was formalized through Federal Decree-Law No. 26 of 2020, which amended the provisions of Federal Law No. 2 of 2015 on Commercial Companies.

This legislation removed the mandatory requirement for UAE nationals to hold a majority share in onshore companies, allowing foreign investors to own up to 100% of their businesses in many sectors.​u.ae

For detailed information on the legal provisions, you can refer to the Official Portal of the UAE Government.

Eligible Business Activities

The Dubai Department of Economy and Tourism (DET) has identified over 1,000 commercial and industrial activities that are open to full foreign ownership. These include sectors such as:​u.ae

• Consultancy Services

• Information Technology

• Trading and Retail

• Manufacturing

• Hospitality and Tourism

• Education and Training​

However, certain strategic sectors remain restricted and may still require local participation. These sectors include:​

• Oil and Gas Exploration

• Defense and Military Activities

• Banking and Finance

• Insurance Services

• Telecommunications​

For a comprehensive list of activities and their eligibility for full foreign ownership, consult the Invest in Dubai portal.​Invest in Dubai+2Invest in Dubai+2Invest in Dubai+2

Want to know how to start a business in Dubai and get residency?
Book a free consultation with our experts today — we’ll break down the cost, process, and help you every step of the way.

BOOK NOW

Steps to Establish a 100% Foreign-Owned Mainland Company

Setting up a fully foreign-owned company in Dubai’s mainland involves several key steps:​

1. Determine Business Activity: Identify the specific business activity you intend to undertake and ensure it is eligible for full foreign ownership.​

2. Choose Legal Structure: Select an appropriate legal form for your business, such as a Limited Liability Company (LLC) or Sole Establishment.​u.ae

3. Reserve Trade Name: Register your company’s trade name with the Dubai Department of Economy and Tourism.​u.ae

4. Initial Approval: Apply for initial approval from the relevant authorities, indicating that there are no objections to your business plans.​u.ae

5. Prepare Legal Documents: Draft and notarize the Memorandum of Association (MOA) and other required documents.​u.ae

6. Lease Business Premises: Secure a physical office space and obtain a tenancy contract registered with Ejari.​u.ae

7. Final License Application: Submit all documents and pay the necessary fees to obtain your business license.​u.ae

Advantages of Full Foreign Ownership

The ability to fully own a mainland company in Dubai offers several benefits:​Invest in Dubai

• Complete Control: Foreign investors can make decisions without the need for local partner consultation.​

• Profit Retention: All profits can be retained without sharing with a local partner.​

• Market Access: Operate anywhere within the UAE and internationally without restrictions.​

• Enhanced Credibility: A mainland license can enhance business credibility with clients and suppliers.​

Considerations and Compliance

While the move towards full foreign ownership is a significant step, it’s essential to remain compliant with all local regulations and licensing requirements. Certain activities may still necessitate approvals from other government bodies, and it’s crucial to stay informed about any sector-specific regulations.​