100% Foreign Ownership in Dubai: Comprehensive Guide for 2026

Previously, foreign investors in Dubai’s mainland market were required to have a 51% Emirati partner. This requirement has now been removed.

Recent amendments to the UAE’s Commercial Companies Law now permit 100% foreign ownership in most Dubai mainland sectors. This change aims to strengthen the UAE’s position as a leading global business hub.

This guide explains the new law, outlines eligibility, and details the process for obtaining full ownership of a Dubai mainland company.

Key Change: Removal of the 51% Local Partner Requirement

Previously, foreign investors establishing a company on the UAE mainland (outside free zones) could own up to 49%, with the remaining 51% required to be held by a UAE national sponsor.

Federal Decree-Law No. 26 of 2020 removed this requirement for most economic activities. Foreign investors can now establish and fully own onshore companies, gaining complete legal and operational control.

Overview 100% ownership in the Dubai mainland

Since June 1, 2021, foreign investors may own 100% of most Dubai mainland companies (LLCs) without a UAE national partner. Over 1,000 commercial and industrial activities qualify, allowing full management control and profit repatriation. Some strategic sectors may still require local approval.

Key Aspects of 100% Mainland Ownership

• Legal Basis: The UAE Commercial Companies Law (Federal Decree-Law No. 26 of 2020) eliminated the need for 51% local shareholding.
• Eligible Activities: More than 1,000 activities qualify, including manufacturing, trading, and services. The Department of Economy & Tourism (DET) regularly updates the approved list.
• Structures: 100% ownership applies to Limited Liability Companies (LLCs) and professional or civil companies.
• Exceptions: Strategic sectors, such as defence, security, telecommunications, and banking, remain subject to restrictions.
• Benefits: Investors gain full control, increased profitability, and a simplified business setup process on the mainland.

Steps to Secure 100% Ownership

1. Define Business Activity: Confirm that your business activity appears on the approved list for full ownership.
2. Select Entity Type: Choose the appropriate entity type, typically an LLC or a branch.
3. Register with DET: Submit a license application to the Department of Economy and Tourism.
4. License Issuance: Once approved, the license will reflect 100% foreign ownership.

Freehold Property Ownership

• Foreign investors may also own 100% of land and property in designated freehold areas, such as Dubai Marina, Palm Jumeirah, and Business Bay.

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

Although the new law is transformative, 100% foreign ownership is not allowed in all sectors. The UAE maintains a Negative List to safeguard national interests.

Foreign Ownership Restrictions List

The following sectors do not permit 100% foreign ownership and require a local partner with majority ownership.

Strategic Impact Activities (Conditional Approval)

In certain sensitive sectors, 100% ownership may be granted with special approval from the relevant UAE regulatory authority. These sectors include:

• Defence & Security: Requires approval from the Ministry of Defence or the 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 can be complex. Our experts at Shuraa are available to guide you through the specific requirements.

Key Benefits of the 100% Foreign Ownership Law

This reform was designed to:

• Boost Attractiveness: Position the UAE as the preferred destination for global investors.
• Increase Control: Grant foreign investors full decision-making authority.
• Simplify Business Setup: Streamline the process for establishing onshore companies.
• Future-Proof the Economy: Attract new capital, talent, and innovative startups to ensure long-term growth.

What This Means for Your Business

1. For New Businesses

If you have delayed starting a company in Dubai due to ownership restrictions, you can now establish a mainland LLC with 100% ownership. This allows you to trade directly across the UAE and internationally without a local partner.

2. For Existing Mainland Businesses

If you own a 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 and gain full ownership.

3. For Free Zone Businesses

Free zones continue to offer strong incentives, but the new mainland law presents a valuable alternative. Free zone companies may now apply to the DET for a permit to operate on the mainland or establish a branch, providing greater flexibility.

How to Get 100% Ownership in an Existing Dubai LLC

With support from a business setup consultant, the process is straightforward:

1. Prepare the application for a license amendment.
2. Amend the Memorandum of Association (MOA).
3. Obtain pre-approval from the DET.
4. Submit the final application and pay the required fees.

Your Partner in Achieving 100% Dubai Mainland Ownership

Navigating new legal requirements can be complex. Since 2001, Shuraa Business Setup has supported over 100,000 businesses in the UAE. We offer a comprehensive 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.

Schedule a free consultation with our corporate advisors to begin your path 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 the Dubai mainland?

Yes. Following amendments 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 allowed but requires a Local Service Agent, who holds no ownership rights.

2. What does 100% foreign ownership in the UAE mean?

Expatriate investors can now own 100% of a mainland (onshore) company in the UAE without needing a UAE national as a majority 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 includes strategic sectors where 100% foreign ownership is prohibited by UAE law, and a majority UAE national partner is required. These sectors include activities critical to national security and interests, such as oil and gas exploration, banking and 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 covers over 1,000 activities. For the most current information, consult the authorities or a business setup expert.

5. Are there any sectors that require special approval for 100% ownership?

Yes. These are called Strategic Impact Activities. Sectors such as defence, banking, and telecom require additional licenses and approvals from relevant federal authorities, such as 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 offers more options. Free zone companies can now operate on the mainland by obtaining a DET permit or establishing a branch, reducing previous trade barriers. This may encourage some businesses to choose the mainland for greater market access.

7. What are the steps for business registration in the UAE with 100% ownership?

The main steps are:

1. Confirm your business activity is eligible for 100% ownership.
2. Reserve a unique trade name with the DET.
3. Obtain initial approval and prepare the legal documents (MOA).
4. Secure a physical office space.
5. Submit all documents and pay fees to receive your business license.
6. Complete subsequent registrations (Chamber of Commerce, Corporate Tax).
7. 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 result in serious consequences, including:

• Heavy financial penalties and recurring fines.
• Suspension or cancellation of your business license.
• Criminal charges, potential imprisonment, and deportation.
• A travel ban prevents 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?

Under the old law, a Local Partner owned 51% of your business. A Local Service Agent (LSA) is required for certain professional licenses, holds no ownership interest, does not share in profits, and only assists with government liaison. For an LLC, neither is typically required for 100% ownership.

Disclaimer: Regulations may change. Please confirm activity eligibility with the Department of Economy and Tourism (DET) or consult a qualified business setup advisor, such as Shuraa, for guidance specific to your situation.