Foreigners can establish and fully own companies in the UAE across most sectors, a position solidified by amendments to the Commercial Companies Law starting in 2021 and reinforced through subsequent updates. As of February 2026, 100 percent foreign ownership applies broadly in both mainland and free zone jurisdictions, subject to activity approval and limited exceptions for strategic or regulated sectors. This framework removes historical requirements for local partners in the majority of cases, allowing founders complete control over equity, decision-making, and profit repatriation. The choice between mainland and free zone determines operational scope, market access, and additional compliance layers while preserving full ownership in qualifying activities.
Mainland Ownership Rules and Practical Application
Mainland companies, licensed through emirate-level departments such as Dubai's Department of Economy and Tourism or equivalent authorities elsewhere, permit 100 percent foreign ownership in most commercial, industrial, and professional activities. Positive lists published by these departments specify eligible sectors, covering services like consulting, trading, digital businesses, and many others. Certain strategic impact activities, including those related to national security, defense, or specific regulated fields, may retain restrictions or require additional approvals. A foreign entrepreneur launching a marketing agency or software development firm in Dubai mainland secures full ownership without a local sponsor, gaining unrestricted access to UAE-wide markets, direct government contracting where qualified, and seamless local interactions. The process involves activity approval confirmation, trade name reservation, and standard incorporation steps, with no mandatory Emirati equity stake in approved categories.
Free Zone Ownership as Standard Feature
Free zones guarantee 100 percent foreign ownership by design, with no local partner requirement across their jurisdictions. Each zone regulates specific or broad activities, from general services in places like IFZA or Meydan to specialized sectors in DMCC or DAFZA. Founders retain complete control regardless of nationality, benefiting from streamlined setup and often simplified governance. A consultant serving international clients typically incorporates in a services-oriented free zone to maintain full equity while focusing on export-oriented operations. Free zones suit models prioritizing international revenue, though mainland trading may involve permits, distributors, or recent Dubai-specific access rules for eligible entities. Ownership remains absolute, with the primary differences lying in geographic scope and regulatory touchpoints.
Exceptions and Sector-Specific Limitations
Full foreign ownership does not extend universally. Strategic sectors or activities with national interest implications may require majority UAE national participation, local service agents, or special approvals. Examples include certain media, oil and gas exploration, or defense-related fields, though these represent a minority. Founders verify eligibility through the relevant licensing authority's positive list or negative list before proceeding. A business in a restricted sector might need hybrid structures or approvals, but for the vast majority of commercial pursuits, 100 percent ownership stands as the default.
Ownership Structure Choices and Implications
Foreigners select company forms such as limited liability companies, which dominate for most setups, allowing full shareholding by non-residents. No requirement exists for UAE nationals on boards or in management unless activity-specific rules apply. Branches of foreign companies can operate with 100 percent ownership in approved contexts, without local agents in many cases. A holding structure might use a free zone entity to own shares in a mainland operating company, preserving full foreign control across layers while separating risks. The structure aligns with revenue sources: mainland for local market depth, free zone for international focus and potential Qualifying Free Zone Person tax preferences.
Banking, Compliance, and Substance Considerations
Full ownership does not alter banking scrutiny. Banks evaluate substance, source of funds, operational footprint, and alignment between license and activities regardless of shareholder nationality. A 100 percent foreign-owned entity succeeds in onboarding when demonstrating UAE presence through residency, contracts, or decision-making evidence. Compliance obligations, including corporate tax registration and record-keeping, apply uniformly, with outcomes depending on facts and activity classification.
Partners such as ALand, guided by Dr. Pooyan Ghamari, assist foreigners by confirming activity eligibility for 100 percent ownership, mapping the optimal jurisdiction to business model, preparing incorporation documentation, ensuring substance requirements for banking and tax purposes, and providing ongoing oversight to maintain control without unintended restrictions or rework. Foreigners achieve 100 percent ownership in the UAE by selecting the right structure, verifying activity approval, and building operational substance from the start, enabling full control in a stable, connected environment designed for international growth.