Is 100% Foreign Ownership Allowed in Dubai for Business Setup?

Is 100% Foreign Ownership Allowed in Dubai for Business Setup?

Is 100% Foreign Ownership Allowed in Dubai for Business Setup?. Dubai has always been a magnet for global investors and entrepreneurs. With its growing economy, world-class infrastructure, and tax-friendly environment, the city continues to attract businesses from around the world. One of the most common questions investors ask is: “Can foreigners own 100% of a business in Dubai?”

The answer is yes, but it depends on your business activity and location. Let’s explore what this means and how foreign investors can take advantage of Dubai’s new ownership laws.

Understanding the Law on Foreign Ownership

Before 2021, foreign investors needed a UAE national partner who held at least 51% of the shares in mainland companies. This rule made it difficult for foreign entrepreneurs to have full control over their businesses.

However, with the introduction of Federal Decree-Law No. 26 of 2020, which came into effect on June 1, 2021, the UAE government made a historic change. It now allows 100% foreign ownership in many business activities, especially in the mainland.

This reform was introduced to attract more international investors, boost competition, and strengthen Dubai’s position as a global business hub.

Where 100% Foreign Ownership Is Allowed

Foreign investors can now fully own their businesses in two main jurisdictions:

1. Mainland Dubai

Under the new law, investors can own 100% of their company in the mainland without needing a local sponsor. The Dubai Department of Economy and Tourism (DET) has listed over 1,000 commercial and industrial activities that qualify for full ownership.

These include:

  • General trading

  • Manufacturing

  • Consulting and professional services

  • Hospitality and tourism

However, some strategic sectors—such as defense, telecommunications, banking, and oil—still require local participation or special government approval.

2. Free Zones

Dubai’s free zones have always allowed 100% foreign ownership. They remain a popular choice for international entrepreneurs because of easy setup procedures, tax benefits, and full profit repatriation.

Well-known free zones include:

  • Jebel Ali Free Zone (JAFZA)

  • Dubai Multi Commodities Centre (DMCC)

  • Dubai Silicon Oasis (DSO)

The only limitation is that free zone companies are generally restricted to operating inside the free zone or abroad unless they obtain a mainland trading license.

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Benefits of 100% Foreign Ownership

The new ownership rules bring many benefits for global investors, such as:

  • Full control over business decisions

  • Complete profit retention without sharing with a local partner

  • Easier setup and reduced legal complexity

  • Freedom to expand operations within the UAE market

Moreover, these reforms have made Dubai even more attractive for startups, tech firms, and international corporations looking for stability and growth.

How to Start a 100% Foreign-Owned Company

Setting up a company with full ownership in Dubai is straightforward. Here are the key steps:

  1. Choose your business activity and check if it’s eligible under the DET list.

  2. Select your jurisdiction — mainland or free zone.

  3. Register your trade name and prepare legal documents.

  4. Apply for initial approval from authorities.

  5. Obtain your business license and open a corporate bank account.

Once these steps are complete, you can begin operations legally in Dubai.

Conclusion

So, is 100% foreign ownership allowed in Dubai for business setup? Absolutely. Dubai now gives international investors full control over their businesses in most sectors, especially within the mainland and free zones.

This change has made Dubai one of the most business-friendly cities in the world. With a transparent legal system, strong economy, and easy setup process, starting a company here has never been more rewarding. If you’re planning to expand globally, Dubai is the perfect place to begin your journey.

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