Can a Foreigner Own 100% of a Company in the UAE?
It is one of the first questions every international entrepreneur asks us, and the answer today is a confident yes, in most cases. A foreign investor can fully own a company in the UAE, whether it is on the mainland, in a free zone or registered offshore. There are still a few exceptions and conditions worth knowing, and that is exactly what this guide covers.
Below, our team at Ampsy Consultancy explains how the rules changed, where full ownership applies, which activities still have limits, and what it means in practice for your business setup in UAE.
The Short Answer
- Free zones: yes, 100 percent foreign ownership has always been allowed.
- Offshore companies: yes, fully foreign owned.
- Mainland companies: yes, for the large majority of commercial and industrial activities since 2021, with no local partner required.
- Strategic activities: a limited group of sensitive sectors still has ownership conditions or extra approvals.
How the Rules Changed
For decades, mainland companies in the UAE had to be at least 51 percent owned by a UAE national. Foreign investors who wanted to trade locally either accepted a local partner or chose a free zone, which limited their access to the domestic market.
That changed with Federal Decree Law No. 26 of 2020, which amended the Commercial Companies Law and removed the majority Emirati ownership requirement for most activities. The changes were later consolidated in Federal Decree Law No. 32 of 2021. The official UAE Government Portal confirms that the law also removed the requirement for branches of foreign companies to appoint a UAE national service agent.
Dubai put the new rules into practice from 1 June 2021. According to the Dubai Government Media Office, more than 1,000 commercial and industrial activities were opened to full foreign ownership, with no additional fees, guarantees or capital required, and licensing procedures otherwise unchanged. Today, a 100 percent foreign owned business setup in Dubai mainland is completely routine.
Why It Matters: Foreign Investment Is at Record Levels
The reform has had a clear impact. According to The National, reporting on the UNCTAD World Investment Report published in July 2026, the UAE attracted a record USD 48.24 billion in foreign direct investment in 2025, up about 6 percent, ranking ninth in the world. The country was also second globally for new greenfield projects for the third year running, with 1,562 projects announced.
At the same time, the Ministry of Economy and Tourism reports that around 760,000 companies have been added since the new Commercial Companies Law came into force in September 2021, taking the total to more than 1.4 million. Full ownership is a big reason so many international founders now choose the UAE.
100% Ownership by Jurisdiction
| Jurisdiction | Foreign ownership | Key points |
|---|---|---|
| Mainland (e.g. Dubai DET) | Up to 100% for most activities | Trade anywhere in the UAE; strategic activities have conditions |
| Free zones (DMCC, IFZA, Meydan, JAFZA and others) | 100% | Activities limited to the free zone licence; mainland access through approved routes |
| Financial free zones (DIFC, ADGM) | 100% | Own legal and regulatory framework; ideal for finance and holding structures |
| Offshore (e.g. RAK ICC, JAFZA Offshore) | 100% | Cannot trade inside the UAE or sponsor residency visas |
| Branch of a foreign company | Fully owned by the parent | No UAE national service agent required under the amended law |
Which Activities Still Have Conditions?
Full ownership is the rule, not a universal guarantee. The Cabinet can identify activities of "strategic impact" and set special licensing requirements for them, which may include limits on foreign ownership. According to the UAE Government Portal, these include:
- Security, defence and military related activities
- Telecommunications
- Banks, exchange houses, finance companies and insurance
- Printing of banknotes and coins
- Commercial agencies, which fall under the Commercial Agencies Law
- Hajj and Umrah services, Holy Quran memorisation centres, and fishing and pearl diving activities
Separately, some activities need approval from a sector regulator, whatever the ownership. Healthcare, education, food, real estate brokerage and financial services are common examples. Rules for certain professional licences and civil companies can also differ by emirate. This is why it is important to check your exact activity with experienced business consultants before you apply.
What Full Ownership Means for You
- Complete control: you make the decisions without needing a local partner's signature or approval.
- All the profits: there is no partner share or annual sponsorship fee to pay.
- Residency for you and your family: as a shareholder you can apply for an investor visa and sponsor eligible family members. Investors who meet the criteria may also qualify for the UAE Golden Visa.
- A cleaner structure: banks, investors and partners find a fully owned company simpler to assess.
- Flexibility to grow: you can add shareholders, bring in investors or restructure on your own terms.
New in 2026: Even More Flexibility for Owners
The amendments to the Commercial Companies Law under Federal Decree Law No. 20 of 2025, explained by the Ministry of Economy and Tourism in January 2026, give owners new tools:
- Multiple share classes: LLCs and private joint stock companies can issue different classes of shares or quotas, so you can bring in investors while keeping control.
- Moving your company: companies can transfer their registration between emirates, free zones and financial free zones without liquidation.
- Stronger shareholder protection: new provisions cover rights when shares are sold to third parties, which helps when you have co founders or investors.
How to Set Up a 100% Foreign Owned Company
- Confirm your activity and check whether it is open to full foreign ownership or needs special approval.
- Choose your jurisdiction: mainland, free zone or offshore, based on your customers, visas and tax position.
- Reserve a trade name and obtain initial approval from the licensing authority.
- Prepare your Memorandum of Association showing you as the sole or majority shareholder.
- Arrange your office and register the tenancy (Ejari on the Dubai mainland).
- Receive your licence, then apply for your establishment card, investor visa and corporate bank account.
For a business setup in Dubai, most of these steps can be completed online through the Invest in Dubai platform, and much of the process can be handled remotely.
Already Have an Emirati Partner?
If your company was set up before 2021 with a UAE national partner, nothing changes automatically. Your current Memorandum of Association stays valid. However, when Dubai introduced the new rules, the authorities confirmed that the local partner's share can be reduced from 51 percent or the partner can withdraw through the proper legal procedures. Restructuring involves amending the company's documents, settling the partner's exit and updating the licence, so it is best handled with professional support.
Common Myths About Foreign Ownership
- "Only free zones allow 100 percent ownership." Not anymore. Most mainland activities are now fully open.
- "Full ownership needs high capital." Dubai confirmed no additional capital or guarantees are needed for full foreign ownership.
- "Full ownership means no approvals." Regulated activities still need the relevant sector approvals.
- "I need a local sponsor for my branch." Branches of foreign companies no longer need a UAE national service agent under the amended law.
How Ampsy Consultancy Can Help
Ampsy Consultancy LLC has set up more than 4,000 companies across the UAE, many of them fully owned by international founders. As business setup consultants in UAE with access to mainland licensing in all seven emirates and over 20 free zones, we confirm whether your activity qualifies for full ownership, recommend the right jurisdiction and handle the process from licence to visa and bank account.
- Dubai mainland business setup with 100% foreign ownership
- Free zone company formation and offshore companies
- Investor visa and Golden Visa assistance
- Business restructuring for companies moving to full ownership
Want to own your UAE company outright? Call +971 4 5489517, WhatsApp +971 58 2520100 or email info@ampsyconsultancy.ae. Visit us at Al Ansari Building, Port Saeed Road, Al Khabaisi, Deira, Dubai, or book a free consultation online.
Frequently Asked Questions
1. Do I need a local sponsor for a business setup in UAE mainland?
For most commercial and industrial activities, no. Since 2021, a foreign investor can own 100 percent of a mainland company without a UAE national partner, and branches of foreign companies no longer need a national service agent. A small group of strategic activities and some professional licences can have different rules, so business setup consultants in UAE will check your activity before you apply.
2. Which activities cannot be 100 percent foreign owned in the UAE?
Activities with strategic impact, such as security and defence, telecommunications, banking, insurance and finance, and commercial agencies, can carry ownership limits or special conditions. Activities like healthcare, education and food also need separate regulator approvals. Experienced business consultants can confirm whether your activity qualifies for full ownership before your business setup begins.
3. Can I convert my existing company with an Emirati partner to 100 percent ownership?
In many cases, yes. For a business setup in Dubai, the authorities have confirmed that an Emirati partner's share can be reduced from 51 percent or the partner can withdraw through the proper legal procedures. This involves amending the Memorandum of Association, agreeing the partner's exit and updating the licence, so professional guidance helps the process run smoothly.
References and Official Sources
- UAE Government Portal: Full foreign ownership of commercial companies
- Dubai Government Media Office, 3 June 2021: Dubai Economy clarifies full ownership procedures for foreign investors
- The National, 8 July 2026: UAE among world's top 10 recipients of FDI in 2025
- Ministry of Economy and Tourism, January 2026: New amendments to the Commercial Companies Law
- Khaleej Times, 6 January 2026: UAE adds 250,000 new companies in 2025
Disclaimer: Ownership rules, activity lists and approvals can change and can differ between emirates and free zones. This article reflects official and published sources as of October 2026 and is general information, not legal advice. Please contact Ampsy Consultancy to check your specific activity.