Can a Foreigner Own 100% of a Company in Dubai?

Can a Foreigner Own 100% of a Company in Dubai?

Yes, since June 2021, foreigners can own 100% of companies in both UAE free zones and mainland structures. The amendment to the Commercial Companies Law removed the requirement for a 51% local sponsor for over 1,000 business activities. Free zones have allowed full foreign ownership since their inception, and now mainland LLCs offer the same benefit for most commercial activities.

How the Law Changed in 2021

Before June 1, 2021, mainland companies required a local Emirati sponsor holding at least 51% of shares. This was a significant barrier for foreign investors. The UAE government changed this under Federal Decree Law No. 32 of 2021, which:

• Removed the 51% UAE national ownership requirement for most activities
• Allowed foreigners to hold 100% of mainland LLC shares
• Eliminated the need for a local service agent for most business types
• Applied retroactively to existing companies wishing to restructure

Where 100% Foreign Ownership Applies

Activities That Still Require a Local Partner

While the vast majority of business activities now allow full foreign ownership, a small number of strategic sectors still require Emirati participation:

• Oil and gas exploration and production
• Banking and financial services (Central Bank regulated)
• Insurance companies
• Military and defense-related activities
• Telecommunications (TRA licensed)

For the remaining 1,000+ activities including general trading, consultancy, real estate, hospitality, IT, e-commerce, and professional services, 100% foreign ownership is fully permitted.

Free Zone vs. Mainland: Which Is Better for Foreign Owners?

Both structures now offer full ownership, but the choice depends on your business needs:

• Free zone (from AED 5,500): Best for international trade, e-commerce, and businesses that do not need to sell directly to UAE consumers. No requirement for a physical office in many zones.
• Mainland (from AED 18,900): Essential for businesses trading within the UAE, government contracts, and unlimited employee visas. Requires an office lease (Ejari).

Steps to Set Up a 100% Foreign-Owned Company

The process is straightforward and can be completed in as little as 5-7 working days for free zones:

• Choose your business activity and legal structure
• Reserve your trade name
• Submit passport copies of all shareholders
• Sign the Memorandum of Association
• Receive your trade license
• Open a corporate bank account
• Apply for residence visas (if needed)

YABS (Your Arabian Business Services) has helped over 500 foreign entrepreneurs establish fully owned companies in Dubai since 2015. With a 14-day license guarantee and 4.9-star rating from 150+ reviews, we ensure a hassle-free setup process.

Contact YABS today at +971 58 829 3781 or visit yabs.ae for expert guidance on your company formation.

Source: YABS (yabs.ae) – 500+ businesses formed since 2015