Can Foreigners Own 100% of a Company in the UAE? [2025 Updated Guide on Ownership Rules]

Business

Can Foreigners Own 100% of a Company in the UAE? [2025 Updated Guide on Ownership Rules]

 If you’re a foreign entrepreneur looking to setup a business in the UAE, you’ve probably heard mixed messages — “you need a local partner,” “only Free Zones allow 100% ownership,” or “rules recently changed.”

Let’s clear the confusion once and for all. This blog explains exactly how 100% foreign ownership works in the UAE, what has changed since 2021, and what restrictions still apply depending on your business structure and activity type.

By the end, you’ll know:

• The current ownership laws for Mainland, Free Zone, and Offshore companies
  
• Which business activities still require Emirati partners
  
• How to choose the right structure for 100% control of your company
  

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The Big Change: UAE’s 100% Foreign Ownership Law

In June 2021, the UAE implemented a groundbreaking reform under Federal Decree-Law No. 26 of 2020, amending the Commercial Companies Law (CCL).

This law removed the mandatory 51% local ownership rule for many business activities in the Mainland, allowing foreign investors to own 100% of their company in approved sectors.

Before this law:

• Foreigners could only own 49% of a Mainland business.
  
• 51% had to be held by a UAE national (local sponsor).
  

After the law:
✅ Foreigners can own 100% of a Mainland company (for approved activities).
✅ Local service agents are no longer mandatory for professional licenses in many cases.

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What Does “100% Foreign Ownership” Mean?

In simple terms, it means complete control — you can:

• Own your company’s shares outright
  
• Make all management and profit-related decisions
  
• Repatriate 100% of your profits and capital
  
• Operate legally under your own name
  

This has made the UAE — especially Dubai and Abu Dhabi — one of the most foreign-investor-friendly economies in the world.

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100% Ownership in Different Jurisdictions

The UAE offers three primary jurisdictions for business setup: Mainland, Free Zone, and Offshore. Ownership rules vary slightly across them:

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🏢 1. Mainland Companies

Can foreigners own 100%?
✅ Yes — for most activities.

The 2021 reforms allow 100% foreign ownership for over 1,000 business activities in sectors like:

• Trading & e-commerce
  
• Consulting & professional services
  
• Real estate, IT, logistics
  
• Manufacturing & industrial
  
• Tourism, hospitality, and retail
  

However:
Some strategic sectors — like defense, energy, oil & gas, banking, insurance, and telecom — still require UAE national shareholding or government approval.

Licensing Authority:
Department of Economic Development (DED) in each emirate

Best for:
Businesses wanting full UAE market access and local presence.

Pro Tip:
Mainland 100% ownership applies at the license activity level, not automatically for all companies — so consult Al Armiyah before finalizing your activity list.

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🏙️ 2. Free Zone Companies

Can foreigners own 100%?
✅ Yes — always.

All Dubai Free Zones (like DMCC, IFZA, Meydan, JAFZA, DIFC) offer 100% foreign ownership, 0% corporate tax, and no customs duty.

You can:

• Register your company without a local sponsor
  
• Operate internationally
  
• Repatriate 100% of your capital & profits
  

However:
Free Zone companies can only trade within the Free Zone or internationally.
To trade directly in the Mainland, you’ll need:

• A local distributor, or
  
• A dual license via DED (available in some zones like DMCC or JAFZA)
  

Best for:
Exporters, digital businesses, consultants, and e-commerce entrepreneurs

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🌍 3. Offshore Companies

Can foreigners own 100%?
✅ Yes — entirely.

Offshore companies (like RAK ICC or JAFZA Offshore) are primarily used for:

• Holding international assets
  
• IP ownership
  
• Investment vehicles
  
• Global trading (outside the UAE)
  

Key Points:

• No physical office or visa requirement
  
• Cannot conduct business within the UAE
  
• Ideal for asset protection & confidentiality
  

Best for:
Holding and investment structures

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Which Structures Allow 100% Ownership?

Here’s a quick table summarizing it all 👇

Business Structure	Jurisdiction	100% Foreign Ownership	Local Partner Needed?
Mainland LLC	Mainland	✅ Yes (for most activities)	❌ No
Sole Establishment / Civil Company	Mainland	✅ Yes (for professionals)	❌ No
Free Zone Establishment (FZE)	Free Zone	✅ Yes	❌ No
Free Zone Company (FZCO)	Free Zone	✅ Yes	❌ No
Offshore Company	Offshore	✅ Yes	❌ No
Branch of a Foreign Company	Mainland / Free Zone	✅ Yes	❌ No
Public / Private Joint Stock	Mainland	⚠️ Depends on sector	✅ Sometimes

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Ownership Restrictions Still in Place

While the UAE is now among the most liberal economies for investors, some ownership restrictions remain:

1. Strategic Activities – Certain industries (oil & gas, defense, transport, insurance, banking) require UAE nationals or government participation.
   
2. Professional Licenses – Some professional categories still require an Emirati Local Service Agent (LSA), though not as a shareholder.
   
3. Foreign Branches – Must align with parent company ownership and global structure.
   
4. Real Estate & Land Ownership – Limited to designated areas in some Emirates for foreign individuals or entities.
   

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Why This Law Matters for Entrepreneurs

The 100% ownership law makes the UAE one of the most attractive global investment hubs. Here’s what it means for you:

✅ No local partner = full control
✅ Greater investor confidence
✅ Simple exit and transfer process
✅ Enhanced ability to attract global partners and funding
✅ Seamless scalability between Mainland and Free Zone operations

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How to Setup 100% Foreign-Owned Company in UAE (Step-by-Step)

1. Choose your jurisdiction: Mainland, Free Zone, or Offshore
   
2. Select business activity: Ensure it’s eligible for 100% ownership
   
3. Choose company structure: LLC, FZE, FZCO, Offshore, etc.
   
4. Reserve company name (via DED or Free Zone authority)
   
5. Submit documents (passport, business plan, tenancy if applicable)
   
6. Pay setup fees and collect license
   
7. Open bank account & apply for visas
   

Al Armiyah can guide you through each step, ensuring full compliance with UAE laws and ownership protection.

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FAQs: 100% Ownership in UAE

Q1. Can I own 100% of a company in Dubai Mainland?
Yes. Since 2021, foreigners can own 100% of Mainland companies in most sectors without a local sponsor.

Q2. Which Free Zones offer 100% foreign ownership?
All of them — including DMCC Free Zone, Meydan, IFZA, JAFZA, and DIFC.

Q3. Are there any sectors where 100% ownership is not allowed?
Yes, strategic sectors like oil, defense, banking, and telecom still require partial Emirati ownership or approvals.

Q4. Is it better to setup business in Mainland or Free Zone?
Depends on your target market — Mainland for local trade, Free Zone for global reach and tax benefits.

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Final Thoughts

The UAE has transformed its business environment to welcome global entrepreneurs with open arms and open ownership.

Whether you’re planning to open an LLC in Dubai Mainland, launch an e-commerce venture in a Dubai Free Zone, or create an Offshore holding company, the path to 100% ownership has never been easier.

At Al Armiyah, we simplify the entire journey — from choosing the right structure to company registration, banking, visas, and compliance — so you can focus on growth while we handle the rest.

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Ready to setup your 100% foreign-owned company in the UAE?
Let’s make it simple, compliant, and stress-free.

📍 Talk to our experts at Al Armiyah
📞 Call/WhatsApp: +971 50 123 4567
💬 Get Your Free Consultation