100% Foreign Ownership in UAE: Enjoy Freedom | What Foreign Investors Need to Know

The UAE continues to be one of the most attractive destinations for foreign investment, thanks to its growing economy and business-friendly policies. One of the most significant changes in recent years is the introduction of 100% foreign ownership. This reform, therefore, offers new opportunities for entrepreneurs by allowing them to fully own their businesses without a local partner, especially in previously restricted sectors.

In this blog, we will explore everything foreign investors need to know about 100% ownership in Dubai mainland. Specifically, we will cover the Dubai business ownership rules and how you can take advantage of the new regulations to grow your business in the UAE.

Understanding 100% Foreign Ownership in UAE

Before 2019, foreign investors could not own more than 49% of a business in the UAE mainland. Instead, the remaining 51% was controlled by a local Emirati sponsor. This arrangement, however, posed challenges for entrepreneurs seeking full control over their companies.

With the introduction of 100% foreign ownership, foreign entrepreneurs can now fully own and operate businesses in specific sectors. As a result, they no longer need a local partner. This change is particularly beneficial for foreign investors who want to establish their presence in the UAE market without sharing profits or decision-making with a local sponsor.

Key Sectors for 100% Ownership Companies in Dubai

While the policy allows 100% ownership, not all sectors are eligible. To address this, the UAE government has created a “positive list” of sectors where full foreign ownership is permitted. Some of these key sectors include:

• Technology: Software development, IT services, and digital solutions.

• Healthcare: Medical practices, healthcare facilities, and pharmaceuticals.

• Renewable Energy: Solar, wind, and other sustainable energy solutions.

• Manufacturing and E-commerce: Retail and product-based businesses.

These sectors align with the UAE’s strategy for economic diversification and growth. Consequently, they offer exciting opportunities for foreign investors.

Dubai Mainland Company 100% Ownership: How It Works

Setting up a Dubai mainland company with 100% ownership allows investors to access the local market directly. Furthermore, they can engage in business activities across the UAE. Previously, foreign investors could only set up companies with local partners in the mainland.

However, with the introduction of 100% ownership, investors can now open businesses in Dubai and the broader UAE mainland without a local sponsor. As a result, Dubai has become an even more attractive option for entrepreneurs. It provides the flexibility to operate freely without sharing control.

Benefits of 100% Foreign Ownership in UAE

1. Total Control
   With 100% ownership in Dubai, you have full control over your business, management, and profits. Therefore, there is no need to share authority with a local partner.

2. Easier Setup
   Since there is no need for a local sponsor, it becomes easier and faster to set up your business in Dubai mainland.

3. More Flexibility
   As a mainland company owner, you can do business across the UAE. Thus, it is easier to build your customer base and expand your operations.

4. Investment Friendly
   This reform significantly boosts the confidence of foreign investors. Consequently, it strengthens the UAE’s position as a global business destination.

The Process of Setting Up a 100% Foreign-Owned Company in the UAE

Setting up a 100% ownership company in Dubai involves several steps:

1. Choose Your Business Activity
   First, ensure your business activity falls under the sectors that allow 100% foreign ownership. These include technology, healthcare, renewable energy, and more.

2. Select a Legal Structure
   Next, depending on your business type, choose between a Limited Liability Company (LLC) in the mainland or a Free Zone company. Mainland companies typically allow a broader range of business activities.

3. Obtain the Necessary Licenses
   Then, apply for a trade or professional license through the Department of Economic Development (DED) in Dubai or the appropriate authority in other emirates.

4. Register Your Business
   After that, register with the DED or the relevant Free Zone authorities to establish your legal entity.

5. Ensure Compliance with Regulations
   Finally, meet legal and tax requirements, such as VAT registration, labor laws, and other industry-specific regulations.

VAT and Compliance for Foreign-Owned Businesses in UAE

At Parker Russell UAE, we offer expert services to help foreign investors navigate the complexities of establishing a 100% foreign ownership company in Dubai. Here’s how we can assist you:

1. Business Setup and Structuring
   First, we help you choose the best legal structure for your business and guide you through the setup process.

2. Legal and Compliance Support
   Additionally, our experts ensure that your business adheres to local laws, including VAT registration, labor laws, and other regulations.

3. Sector-Specific Advice
   Whether you’re interested in technology, healthcare, or renewable energy, we help you understand the business opportunities available for foreign investors in the UAE.

Conclusion: Unlocking Opportunities with 100% Foreign Ownership in UAE

The introduction of 100% foreign ownership in UAE marks a transformative shift in the country’s business landscape. Foreign entrepreneurs now have the opportunity to set up businesses in Dubai mainland and other emirates with full control and ownership. Consequently, this reform makes the UAE an even more appealing destination for global investors.

At Parker Russell UAE, we are committed to helping foreign investors navigate the complexities of setting up a 100% foreign-owned company in Dubai. Therefore, contact us today to learn more about how we can assist you in launching and growing your business in the UAE.