Dubai has always been known for welcoming global businesses, but over the past few years, the city has taken things a step further. Through progressive reforms and investor-focused policies, the UAE government has made it easier than ever for international entrepreneurs to set up and grow their businesses in Dubai. One of the most impactful changes is the introduction of 100% foreign ownership in Dubai Mainland.
For international investors, 100% foreign ownership means full control of their mainland business, without the need for a local Emirati sponsor or partner for most commercial and industrial activities. Business owners can now retain complete ownership, decision-making authority, and profits, while still enjoying unrestricted access to the UAE’s local market.
For entrepreneurs planning to enter the UAE market, this change is a real game-changer. It brings more confidence, flexibility, and long-term stability, especially for startups and growing businesses.
What Is 100% Foreign Ownership in Dubai Mainland?
100% foreign ownership means that an international investor can now own and control their Dubai-based company entirely on their own. You no longer need to find a local Emirati partner to hold the majority of your shares.
In the past, the Mainland (the area outside of tax-free hubs like IFZA, Dubai Internet City or DMCC) was off-limits for full ownership. Today, that barrier is gone for over 1,000+ commercial and industrial activities, ranging from retail and manufacturing to technology and consulting.
The Announcement (Nov 2020): The UAE President issued a landmark decree (Federal Decree-Law No. 26 of 2020) to amend the Commercial Companies Law.
The Launch (June 1, 2021): The law officially went into effect. Dubai’s Department of Economy and Tourism (DET) released a list of over 1,000 activities eligible for full ownership.
Since the initial launch, the list of eligible activities has grown. Digital platforms like Invest in Dubai were enhanced, making it possible to start a 100% foreign-owned company in just minutes.
Key Sectors Allowed for 100% Foreign Ownership in Dubai Mainland
Dubai allows 100% foreign ownership across a wide range of mainland business activities. While the exact eligibility depends on the business activity and approvals, the following sectors commonly allow full foreign ownership:
1. Trading and Retail
This is the most common sector for entrepreneurs. You can now own 100% of companies involved in:
- General Trading: Importing and exporting various goods.
- E-commerce: Running online stores and digital marketplaces.
- Specialised Retail: Stores for clothing, electronics, jewellery, and luxury goods.
- Automobiles: Trading in new and used cars and spare parts.
2. Technology and Digital Services
Dubai is positioning itself as a global tech hub, making these activities a top priority for 100% ownership:
- Software Development: Creating apps, web platforms, and enterprise software.
- IT Consulting: Cybersecurity, cloud computing, and network management.
- AI and Robotics: Research and implementation of advanced automation.
- Digital Marketing: SEO, content creation, and social media agencies.
3. Manufacturing and Industry
To boost local production, Dubai allows 100% ownership in various industrial fields:
- Food and Beverage: Manufacturing of snacks, bottled water, and processed foods.
- Textiles: Production of apparel and leather goods.
- Consumer Goods: Manufacturing of soaps, detergents, and perfumes.
- Construction Materials: Production of paints, glues, and metal products.
4. Professional and Creative Services
For these services, you typically get a Professional License. You own 100% of the company, though you may still need a Local Service Agent (LSA) to handle government paperwork (they take no equity).
- Consulting: Management, HR, and business setup consultancy.
- Healthcare: Clinics, wellness centres, and specialised medical laboratories.
- Education: Private schools, training institutes, and vocational centres.
- Design: Interior design, architecture, and fashion boutiques.
Businesses Still Requiring Local Participation
While the doors are mostly open, a few strategic impact sectors still require a local Emirati partner (the old 51/49 rule). These include:
- Oil & Gas: Exploration and production.
- Telecommunications: National network providers.
- Financial Services: Banking, insurance, and money exchange.
- Defence: Military equipment and security services.
- Utilities: Electricity and water supply
100% Foreign Ownership vs Free Zone Companies
With 100% foreign ownership now allowed in Dubai Mainland, many investors often wonder whether to choose a mainland company or a free zone company.
| Feature | Dubai Mainland | Dubai Free Zone |
| Ownership | 100% Foreign Ownership (for 1,000+ activities). | 100% Foreign Ownership (standard for all activities). |
| Market Access | Can trade anywhere in the UAE and bid for government contracts. | Restricted to trading inside the zone or internationally. |
| Office Space | Mandatory physical office (min. 200 sq. ft.). | Flexible (Virtual offices, flexi-desks, or shared spaces allowed). |
| Visa Quota | Based on office size (usually 1 visa per 80-100 sq. ft.). | Often capped by the Free Zone (e.g., 2–6 visas per license). |
| Setup Cost | Generally higher (includes office rent and DED fees). | Generally lower (packages start as low as AED 12,000). |
| Taxes | 9% Corporate Tax on profits over AED 375,000. | Can be 0% if you meet the Qualifying Person criteria. |
How to Start 100% Foreign Ownership Business in the Dubai Mainland?
Starting a 100% foreign-owned business in Dubai Mainland is faster than ever, thanks to digital platforms like Invest in Dubai. However, it still follows a specific legal sequence to ensure your company is compliant from day one.
Here is the step-by-step process for setting up your 100% ownership mainland company:
1. Choose Your Business Activity
Everything starts with your activity. Select a business activity that allows 100% foreign ownership under Dubai Mainland regulations. This step is important, as ownership rules can vary based on the activity.
2. Choose Your Legal Structure
For 100% foreign ownership, the most common structure is a Limited Liability Company (LLC) or a Sole Establishment.
- LLC: Best if you have multiple partners; it protects your personal assets from business liabilities.
- Sole Establishment: Best if you are a single owner providing professional services.
3. Reserve Your Trade Name
Apply for trade name reservation with the Dubai Department of Economy and Tourism (DET). The name must follow UAE naming guidelines and reflect your business activity.
4. Get Initial Approval
This is a no-objection certificate from the government. It basically says the UAE has no issue with you starting a business. For foreign investors, you may also need a security clearance/approval from the General Directorate of Residency and Foreigners Affairs (GDRFA) at this stage.
5. Draft the Memorandum of Association (MOA)
Since you don’t need a local partner, you will draft a 100% Ownership MOA. This document outlines how the company is managed and how shares are divided. It must be signed in front of a Notary Public (this can often be done digitally now).
6. Secure a Physical Office (Ejari)
Mainland companies must have a physical address. You’ll need to sign a tenancy contract and register it with Ejari (Dubai’s online system for rental contracts).
7. Collect Your License
Once your Ejari and signed MOA are submitted, you pay the license fees. After payment, your trade license is usually issued electronically within hours or a few days. You must also register for Corporate Tax within 3 months of getting your license or when the MOA is signed.
Keep in mind that some business activities require additional approvals from specific authorities or ministries before the license is issued.
Recommended: AE Setup assists businesses with 100% foreign ownership company setup in Dubai Mainland and across the UAE. From activity selection and licensing to visas, PRO services, and post-setup support, we ensure seamless business setup in Dubai.
Documents Required for 100% Foreign Ownership
To start a 100% foreign-owned business in Dubai Mainland, you need to submit a set of standard documents. This typically includes:
- Passport copy of all shareholders
- UAE visa copy (if already available)
- Emirates ID (for UAE residents)
- Passport-size photographs
- Proposed company name options
- Detailed description of business activity
- Initial approval certificate from DET
- Memorandum of Association (MOA)
- Tenancy contract (Ejari)
- No Objection Certificate (NOC) from current sponsor (for UAE residents)
- External approvals from relevant authorities
- Attested incorporation documents (for foreign companies opening a branch or subsidiary)
What is the Cost of Setting Up a 100% Foreign-Owned Mainland Company in Dubai?
The cost of setting up a 100% foreign-owned mainland company in Dubai generally starts from AED 15,000 to AED 35,000+ for basic licensing and government fees. The final cost can increase depending on your business activity, office space requirements, number of visas, and additional approvals.
In addition to the license fee, office space is mandatory for mainland companies. Depending on whether you choose a flexi-desk or a private office, rental costs can range from AED 5,000 to AED 50,000+ per year, based on location and size. Visa and immigration costs are another important factor. Investor or employee visas typically cost around AED 3,000 to AED 7,000+ per visa, including Emirates ID and medical tests.
Overall, when you combine license fees, office rent, visas, and government charges, the total first-year cost for a 100% foreign-owned mainland company commonly ranges between AED 25,000 and AED 75,000+.
Since costs can vary by activity and approvals, getting professional advice helps you plan your budget accurately and avoid unexpected expenses during the setup process.
What are the Benefits of 100% Foreign Ownership?
100% foreign ownership in Dubai Mainland has made business setup simpler and more attractive for international investors. Here are some key benefits that make mainland companies a preferred choice:
- Full Ownership & Complete Control: You own 100% of your business without the need for a local sponsor. This means full control over decision-making, operations, and company direction.
- No Profit Sharing: All profits belong entirely to you. There is no mandatory revenue or profit sharing with a local partner, which improves long-term financial planning.
- Direct Access to the UAE Market: Mainland companies can trade freely anywhere in the UAE, including directly with customers, corporates, and government entities.
- Greater Business Flexibility: You can open offices anywhere in Dubai, expand to other Emirates, and add new activities more easily compared to other business structures.
- Better Growth & Expansion Opportunities: Mainland businesses can scale without restrictions, open multiple branches, and take part in local and international projects.
- Easier Hiring & Visa Options: Mainland companies usually enjoy more flexibility in hiring employees and applying for visas, depending on office space and business needs.
- Improved Investor Confidence: Complete ownership brings transparency, security, and confidence, especially for startups, SMEs, and international businesses planning long-term operations in the UAE.
How AE Setup Can Help with 100% Foreign Ownership
100% foreign ownership has shifted how businesses enter the UAE. What was once a limitation is no longer a concern. Today, entrepreneurs can fully own their mainland companies, operate freely in the local market, and plan long-term growth with confidence.
And if you’re unsure where to start or how the rules apply to your activity, AE Setup can step in. From checking eligibility to handling licensing, visas, and compliance, our expert team helps businesses set up 100% foreign-owned companies in Dubai and across the UAE, without confusion or unnecessary delays.
Frequently Asked Questions
1. Is 100% foreign ownership allowed in Dubai Mainland?
Yes. Following the 2021 reforms, foreigners can now fully own mainland companies for over 1,000 commercial and industrial activities without needing a local Emirati partner.
2. Do I still need a local sponsor for my business?
In most cases, no. You only need a local partner (holding 51% shares) if your business falls under strategic impact sectors like oil and gas, banking, or defence.
3. Is 100% foreign ownership better than a free zone setup?
It depends on your business goals. Mainland companies offer direct access to the UAE market, while free zones are better suited for international trade and specific industries.
4. What is the difference between a Local Partner and a Local Service Agent (LSA)?
A Local Partner owns 51% of your company’s shares. A Local Service Agent (LSA) owns 0% and simply helps with government paperwork for a fixed annual fee. LSAs are typically required for professional services.
5. Do I need a physical office for a 100% foreign-owned mainland company?
Yes. A physical office or shop with a registered Ejari (tenancy contract) is a mandatory requirement for all Dubai Mainland licenses.
