Full (100%) foreign ownership of companies in UAE – 2024 Guide

The UAE has become a hub for foreign investment, thanks to its strategic location, robust economy, and business-friendly policies. One of the most significant advantages for foreign investors is the option of 100% foreign ownership in many sectors, particularly in Dubai mainland and Abu Dhabi, providing full control over business operations without the need for a local sponsor. This change in UAE business ownership laws opens up vast possibilities for entrepreneurs worldwide.

What is 100% Foreign Ownership in the UAE?

Previously, foreign ownership in the UAE was restricted to 49%, with a UAE national owning the remaining 51% in mainland companies. However, with the UAE’s new regulations, foreign investors can now have 100% ownership in a wide range of business activities in Dubai mainland and across the UAE. This applies to businesses in various sectors, including commercial, industrial, and professional services.

Key Features of 100% Foreign Ownership in the UAE

• No Local Partner Requirement: Foreign investors are no longer required to have a local sponsor or partner for selected business activities, offering them full control over their company.
• Mainland Business Setup: Investors can set up a business in Dubai mainland and enjoy direct access to the local market and government contracts without needing a local partner.
• Wide Range of Activities: The UAE government has outlined a list of 122 economic activities that allow 100% foreign ownership, covering industries such as manufacturing, agriculture, healthcare, retail, and technology.

Benefits of 100% Foreign Ownership in the UAE

1. Complete Control: Foreign investors have full decision-making power, operational control, and profit retention in their companies.
2. Access to Local Market: Businesses established in Dubai mainland can engage directly with the local market, unlike free zone companies, which are limited to specific trade zones.
3. Fewer Restrictions: The UAE’s foreign ownership laws have reduced restrictions on foreign investments, promoting easier and quicker company setup.
4. Growth Opportunities: With 100% business ownership in Dubai and other emirates, international investors can expand their footprint in the UAE and the broader Middle East region.
5. No Personal Income Tax: The UAE continues to offer attractive tax benefits, with zero personal income tax and low corporate taxes, making it an ideal environment for business growth.

Which Business Activities Are Allowed 100% Foreign Ownership in UAE?

The UAE has published a list of business activities where 100% foreign ownership is permitted. These include industries such as:

• Agriculture: Farming, forestry, and livestock businesses
• Manufacturing: Production of food products, beverages, textiles, and machinery
• Healthcare: Private hospitals, clinics, and medical supply businesses
• Retail and Wholesale Trade: E-commerce, retail outlets, and trading of consumer goods
• Technology: Software development, IT consulting, and digital solutions

For investors looking to establish a company in Dubai mainland with full foreign ownership, it’s essential to select from the approved activities listed by the UAE government.

Dubai Mainland 100% Ownership: What You Need to Know

Setting up a business with 100% foreign ownership in Dubai mainland has become a popular choice for investors. This structure allows companies to engage with the local UAE market and participate in government tenders. With the removal of the local sponsor requirement, investors have more freedom in decision-making and profit distribution.

At Raes Associates, we guide entrepreneurs and investors through the process of obtaining 100% ownership in Dubai by helping them select the right business activity and navigate the regulatory requirements.

Foreign Ownership in Abu Dhabi

Abu Dhabi, the capital of the UAE, also offers full foreign ownership for a wide array of business activities. Investors can leverage 100% foreign ownership in Abu Dhabi to enter sectors like energy, real estate, hospitality, and technology. With its rapidly growing economy and focus on innovation, Abu Dhabi provides a stable environment for long-term business success.

Starting a 100% Foreign-Owned Business in the UAE

Setting up a company with 100% ownership in the UAE is straightforward, particularly when working with experienced consultants like Raes Associates. We offer comprehensive business setup services that streamline the process and ensure full compliance with UAE laws.

Steps to Set Up a 100% Foreign-Owned Business:

1. 1. Choose Your Business Activity: Select the appropriate business activity from the UAE’s 100% ownership list, which includes key sectors like manufacturing, healthcare, technology, and retail. The UAE has opened up several industries to foreign ownership, making it easier for international investors to enter the market.

   2. Select a Business Location: Decide whether to operate in Dubai mainland, Abu Dhabi, or another emirate. Each emirate offers unique advantages, with Dubai and Abu Dhabi leading as business hubs that provide full foreign ownership rights. Other emirates, like Sharjah and Ajman, also offer cost-effective options for company setup.

   3. Register Your Business: Submit the necessary documents and complete the registration process with the relevant government authorities, such as the Department of Economic Development (DED). The UAE has streamlined the registration process to encourage foreign investment, making it quicker and more accessible.

   4. Obtain the Necessary Licenses: Apply for the appropriate business licenses based on your activity. The UAE offers several types of licenses, including commercial, industrial, and professional licenses, all designed to support foreign investors.

   5. Open a Business Bank Account: After your business is registered, you will need to open a corporate bank account with a UAE bank. The UAE’s stable banking sector offers numerous options for foreign-owned businesses to manage their finances securely.

   By following these steps and taking advantage of the UAE’s pro-business environment, you can successfully set up a 100% foreign-owned business and thrive in one of the world’s fastest-growing economies.

Why Choose Raes Associates for Your 100% Foreign Ownership Setup?

At Raes Associates, we specialize in helping foreign investors establish businesses in the UAE with 100% ownership. Our team provides end-to-end support, from navigating Dubai business ownership rules to selecting the right legal structure.

Our Services Include:

• Business Setup Consultation: We offer expert advice on selecting the right business activities and jurisdictions for 100% foreign ownership.
• License Acquisition: We manage the entire process of obtaining licenses for your business.
• Corporate Structuring: We help you choose the best corporate structure to align with your business goals.
• Bank Account Setup: We assist in opening a business bank account with top UAE banks.

Take advantage of the UAE’s foreign ownership opportunities and start your business journey today with Raes Associates.