For decades, the dream of fully owning your business in Dubai’s mainland market came with a major hurdle: the mandatory 51% Emirati partnership. That era is over.
The groundbreaking amendments to the UAE’s Commercial Companies Law have rewritten the rules, allowing 100% foreign ownership in Dubai mainland for most sectors. This isn’t just a policy shift; it’s a strategic move to position the UAE as the world’s premier business hub.
If you’re an entrepreneur or investor who was hesitant about losing control, this guide is for you. We’ll break down exactly what the new law means, who is eligible, and how you can claim full ownership of your Dubai mainland company.
What Changed? The End of the 51% Local Partner Rule
Previously, to set up a company on the UAE mainland (outside free zones), a foreign investor could only own a maximum of 49% of the business. The remaining 51% was required to be held by a UAE national sponsor.
The updated Federal Decree-Law No. 26 of 2020 eliminated this requirement for the vast majority of economic activities. Now, foreign investors can establish and fully own their onshore companies, giving them complete legal and operational control.
How to Get 100% Foreign Ownership in Dubai: LLC vs. Sole Establishment
The business structure you choose is key to understanding the setup process.
- Limited Liability Company (LLC): This is the most common structure for trading, manufacturing, and industrial activities. Under the new law, you can form an LLC with 100% foreign ownership without any local partner or sponsor.
- Sole Establishment (for Professional Licenses): For professional service-based businesses (e.g., consulting, IT services, marketing), you can have 100% ownership, but you must appoint a Local Service Agent (LSA). Crucially, the LSA has zero ownership or profit share and is only involved in facilitating government procedures.
Who is Eligible for 100% Ownership in Dubai Mainland?
Eligibility is determined by the emirate’s Department of Economy and Tourism (DET), formerly known as DED.
In Dubai, over 1,000 economic activities across sectors like trading, manufacturing, and technology now qualify for 100% foreign ownership. However, it’s important to note that not all activities are included. A local partner is still mandatory for strategic sectors like:
- Oil and Gas Exploration
- Banking and Financial Services
- Insurance
- Defence and Military Activities
Pro Tip: The “Positive List” of eligible activities is dynamic. Consulting with a business setup expert like Shuraa is the best way to confirm your specific business activity qualifies.
Understanding the Limits: The Negative List & Strategic Impact Sectors
While the new law is transformative, it’s crucial to know that 100% foreign ownership is not permitted in all sectors. The UAE maintains a ‘Negative List’ to protect national interests.
The Negative List (Fully Restricted Sectors)
Foreign ownership is still prohibited in the following strategic sectors. A local partner with majority ownership is mandatory.
- Oil and Gas Exploration and Production
- Banking, Financing, and Insurance Activities
- Military, Defence, and Security-related Activities
- Water and Electricity Services
- Postal, Telecommunication, and Air & Land Transport Services
Strategic Impact Activities (Conditional Approval)
For some sensitive sectors, 100% ownership may be possible but requires special approval from the relevant UAE regulatory authority. These include:
For some sensitive sectors, 100% ownership may be possible but requires special approval from the relevant UAE regulatory authority. These include:
- Defence & Security: Requires approval from the Ministry of Defence or Ministry of Interior.
- Banking & Insurance: Regulated by the Central Bank of the UAE.
- Telecommunications: Overseen by the Telecommunications and Digital Government Regulatory Authority (TDRA).
- Hajj and Umrah Services: Controlled by the General Authority for Islamic Affairs and Endowments.
Navigating these sectors is complex, and our experts at Shuraa can guide you through the specific requirements.
Key Benefits of the 100% Foreign Ownership Law
This reform was designed to:
- Boost Attractiveness: Make the UAE the undisputed first choice for global investors.
- Increase Control: Empower foreign investors with full decision-making power.
- Simplify Business Setup: Streamline the process of establishing an onshore company.
- Future-Proof the Economy: Attract new capital, talent, and innovative startups.
What This Means for Your Business
1. For New Businesses
If you’ve been hesitant to start a company in Dubai due to ownership restrictions, the path is now clear. You can establish a mainland LLC with 100% ownership, giving you the freedom to trade directly across the UAE and internationally without a local partner.
2. For Existing Mainland Businesses
If you have an existing mainland LLC with a local sponsor, you can now amend your license and Memorandum of Association (MOA) to transfer the 51% shares to your name, achieving full ownership.
3. For Free Zone Businesses
While free zones still offer fantastic incentives, the new mainland law provides a compelling alternative. Free zone companies can now also apply for a permit from the DET to operate on the mainland or establish a branch, offering unprecedented flexibility.
How to Get 100% Ownership in an Existing Dubai LLC
With the assistance of a business setup consultant, the process is straightforward:
- Prepare the application for a license amendment.
- Amend the Memorandum of Association (MOA).
- Obtain pre-approval from the DET.
- Submit the final application and pay the required fees.
Your Partner in Achieving 100% Dubai Mainland Ownership
Navigating a new legal landscape can be complex. Since 2001, Shuraa Business Setup has been the trusted partner for over 100,000 businesses in the UAE. We provide an end-to-end solution:
- Eligibility Assessment: We confirm if your business activity qualifies for 100% ownership.
- Documentation & Licensing: We handle all paperwork and approvals with the DET.
- Ongoing Support: From visa processing to PRO services, we manage the formalities so you can focus on your business.
Book a free consultation with our corporate advisors to start your journey to full business ownership in Dubai.
Call +971 44081900 | WhatsApp +971 501287254 | Email info@shuraa.com
Frequently Asked Questions (FAQs)
1. Can a foreigner own 100% of a company in Dubai mainland?
Yes. Following the amendment to the Commercial Companies Law, foreigners can own 100% of a mainland LLC in Dubai for most economic activities. For professional licenses, 100% ownership is also possible but requires a Local Service Agent (with no ownership rights).
2. What does 100% foreign ownership in the UAE mean?
It means that expatriate investors can now own 100% of a mainland (onshore) company in the UAE without being required to have a UAE national as a majority (51%) shareholder. This applies to most, but not all, business activities.
3. What is the Negative List for foreign ownership in the UAE?
The Negative List refers to specific strategic sectors where 100% foreign ownership is prohibited by UAE law, requiring a majority UAE national partner. As outlined in the detailed section above, this list includes activities critical to national security and interests, such as oil and gas exploration, banking & insurance, defence, and utilities.
4. Is there a list of activities eligible for 100% ownership in the UAE?
Yes. Each emirate’s Department of Economy and Tourism (DET) or Economic Development (DED) maintains a “Positive List” of eligible activities. In Dubai, this list includes over 1,000 activities. It’s best to consult directly with the authorities or a business setup expert for the most current list.
5. Are there any sectors that require special approval for 100% ownership?
Yes, these are known as “Strategic Impact Activities.” While not outright prohibited, sectors like defence, banking, and telecom require additional licenses and approvals from their specific federal authorities (e.g., the Central Bank for financial services). Full 100% ownership in these sectors is not guaranteed and is assessed on a case-by-case basis.
6. How does 100% mainland ownership affect free zone companies?
The new law provides more options. Free zone companies can now legally operate on the mainland by obtaining a DET permit or setting up a branch, reducing the historical trade barrier. This may lead some businesses to choose the mainland over a free zone for greater market access.
7. What are the steps for business registration in the UAE with 100% ownership?
The key steps are:
- Confirm your business activity is eligible for 100% ownership.
- Reserve a unique trade name with the DET.
- Obtain initial approval and prepare the legal documents (MOA).
- Secure a physical office space.
- Submit all documents and pay fees to receive your business license.
- Complete subsequent registrations (Chamber of Commerce, Corporate Tax).
- Apply for residency visas for employees and investors.
8. What are the risks of not complying with the UAE’s ownership laws?
Non-compliance can lead to severe consequences, including:
- Heavy financial penalties and recurring fines.
- Suspension or cancellation of your business license.
- Criminal charges, potential imprisonment, and deportation.
- A travel ban, preventing you from re-entering the UAE.
- Reputational damage and blacklisting by authorities.
9. What is the difference between a Local Partner and a Local Service Agent?
A Local Partner owned 51% of your business under the old law. A Local Service Agent (LSA) is required for certain professional licenses, holds zero ownership, does not share profits, and only assists with government liaison. For an LLC, you typically do not need either for 100% ownership.
Disclaimer: The information provided in this article is for general guidance only and does not constitute legal or professional advice. Laws and regulations are subject to change. We recommend consulting with a qualified business setup consultant for advice tailored to your specific situation.
