How Foreign Investors Can Own 100% of Their Business in the UAE
The United Arab Emirates (UAE) has long stood as a business gateway between the East and West—a strategic location with world-class infrastructure, tax benefits, and global connectivity. Historically, foreign investors had to rely on local sponsorship to launch their businesses in the UAE mainland, often limited to owning only 49% of the company. However, thanks to major economic reforms, foreign investors can now own 100% of their business in many sectors, opening up enormous opportunities for global entrepreneurs.
If you’re considering expanding your business to the UAE, here’s everything you need to know about full foreign ownership—and how Dar Aluloom International, a leading business set up consultant in Dubai, can guide you every step of the way.
A Game-Changing Reform: Full Foreign Ownership
In June 2021, the UAE government implemented a landmark amendment to the UAE Commercial Companies Law. The reform removed the requirement for UAE nationals to hold at least 51% of shares in onshore companies. This means that for many types of businesses, foreign investors can now retain 100% ownership without needing a local sponsor or service agent.
This change aligns with the UAE’s vision to attract global talent and boost its economy through a more liberal investment climate. It’s also a critical move to solidify the country’s position as a global business hub.
Sectors Eligible for 100% Foreign Ownership
Not all sectors are eligible for 100% foreign ownership. However, the list of permitted activities is vast and continues to expand. Here are some industries where foreign investors can fully own their business in the mainland:
- E-commerce and retail
- Manufacturing
- Information technology
- Consultancy and advisory services
- Real estate brokerage
- Education and training services
- Hospitality and tourism
- Agriculture and food services
To confirm eligibility, it is crucial to work with a trusted business consulting service in Dubai like Dar Aluloom International. Our team can identify the right business activity under your trade license and ensure it aligns with government-approved sectors.
Mainland vs Free Zone: What’s the Difference?
Many investors wonder whether they should set up in a Free Zone or go for a Mainland license. While both offer different advantages, the full foreign ownership rule mainly impacts mainland businesses.
Free Zone Companies
Free Zones have always permitted 100% foreign ownership. However, businesses in Free Zones are restricted in terms of:
- Operating only within the Free Zone or internationally
- Requiring a local distributor to trade directly on the mainland
Mainland Companies
With the new law, mainland companies can now enjoy 100% ownership and also:
- Trade freely anywhere in the UAE
- Bid for government contracts
- Open offices and hire staff across the Emirates
For many businesses, especially those aiming to scale or target the local market, a mainland license now offers unbeatable flexibility and reach.
Key Requirements and Process
Setting up a fully foreign-owned company in the UAE mainland is relatively straightforward, especially with the help of a professional business set up consultant in Dubai. Here’s a simplified overview of the process:
1. Business Activity Approval
Identify your business activity and check if it’s eligible for 100% foreign ownership.
2. Trade Name Registration
Choose and register a unique trade name that reflects your business purpose.
3. Office Space or Business Location
Secure a physical office or business location as required by the license.
4. License Issuance
Finalize documentation and get your business license issued by the authorities.
5. Visa Processing and Labor Card
Apply for investor visas, employee visas, and register with the Ministry of Labor.
At Dar Aluloom International, we streamline every step—saving you time, reducing hassle, and ensuring compliance with all regulatory requirements.
Benefits of 100% Business Ownership
The shift to full foreign ownership comes with several compelling advantages:
- Complete Control
Run your business independently without relying on a UAE national partner. - Profit Retention
Enjoy full rights to all profits, dividends, and returns on investment. - Strategic Flexibility
Expand or modify your business activities easily without stakeholder limitations. - Legal Protection
Fully own intellectual property, contracts, and assets under your name. - Greater Market Access
Operate across the entire UAE without restrictions, especially valuable for retail, real estate, and service sectors.
How Dar Aluloom International Can Help
At Dar Aluloom International, we specialize in providing business consulting services in Dubai that are tailored for ambitious entrepreneurs and corporations aiming to enter the UAE market. Here’s how we can assist you:
Business Activity Analysis
We help identify business categories that are eligible for 100% ownership under current UAE laws.
Customized Business Structuring
We advise choosing mainland, free zone, or offshore setups based on your goals.
End-to-End Company Formation
From documentation and trade name registration to visa processing and license issuance, we handle it all.
Compliance and Legal Guidance
Our team ensures your company meets all legal and regulatory standards from day one.
Strategic Business Growth
Beyond setup, we offer support for expansion, tax consultancy, and long-term strategy.
With years of experience and local expertise, Dar Aluloom International stands as a trusted partner for foreign investors seeking a reliable business set-up consultant in Dubai.
The UAE’s move to allow 100% foreign ownership of mainland businesses marks a new era of opportunity. Whether you’re a seasoned investor or a first-time entrepreneur, this is the perfect time to make your mark in one of the world’s most dynamic economies.
By partnering with the right professionals, like the team at Dar Aluloom International, you can navigate the legal landscape confidently and set the foundation for long-term success in the UAE.
Ready to start your business journey in Dubai? Contact Dar Aluloom International today and let us help you unlock the full potential of your business in the UAE.
