In a groundbreaking move aimed at unlocking new opportunities and fostering the benefits of business ownership, the UAE introduced a landmark reform allowing foreign investors to fully own their companies. This significant policy shift marks a pivotal moment in Dubai’s economic landscape, positioning the nation as a beacon for global business ventures. With the ability to retain complete Dubai company ownership, expats can now navigate the business landscape with unprecedented freedom and confidence, amplifying Dubai’s allure as a premier destination for ambitious entrepreneurs worldwide.
Dubai’s decision to permit 100% foreign business ownership underscores its commitment to cultivating a dynamic and diverse business environment. This strategic initiative is set to empower foreign investment across various sectors, from technology and finance to hospitality and beyond, by eliminating previous barriers and streamlining the path to business success. As an international business hub, Dubai continues to redefine possibilities, offering unrivalled opportunities for innovation, growth and prosperity on a global scale.
100% foreign business ownership in UAE
Previously, Dubai’s business landscape was characterised by a dual framework where free zones allowed 100% foreign business ownership while mainland companies required a majority (51%) ownership from a local sponsor. This distinction often influenced expatriate entrepreneurs’ decisions, steering many towards free zones to retain full control of their ventures. However, with Dubai’s amendment to the UAE’s Commercial Companies Law (CCL) in 2021, this paradigm has undergone a transformative shift. Expatriates can now establish mainland companies without the need for local sponsorship, marking a significant departure from traditional practices and opening new avenues for global business engagement.
This progressive policy change in business ownership in the UAE reflects the nation’s commitment to enhancing its competitiveness on the global stage. By abolishing the sponsorship requirement for mainland businesses, Dubai has effectively levelled the playing field, enabling expatriates to harness the full benefits of business ownership across all sectors. This move not only promotes economic diversification but also enables operational flexibility, strategic growth opportunities and unparalleled market access around the world.
Types of business ownership in UAE
In the UAE, foreign investment can be structured into three main types of Dubai company ownership: mainland, free zone and offshore. Each structure offers distinct advantages tailored to different business needs and objectives, whether entrepreneurs are seeking a local or a global presence and reach.
Let’s take a look at a summary of these company types (note they all enable 100% foreign business ownership):
Mainland Company
- Ownership: 100% foreign ownership.
- Scope: Freedom to operate within Dubai and across the UAE without geographical restrictions.
- Key Benefits: Access to government contracts and the local market. No restrictions on office locations.
Free Zone Company
- Ownership: 100% foreign ownership.
- Scope: Restricted to doing business within the free zone itself or internationally, depending on the free zone.
- Key Benefits: No personal or corporate taxes, customs duty exemptions, easy import/export processes and streamlined business set-up.
Offshore Company
- Ownership: 100% foreign ownership.
- Scope: Designed for international business activities. Cannot conduct business within the UAE mainland.
- Key Benefits: Asset protection, tax efficiency and privacy of ownership. Ideal for holding companies and international trade.
What are the major benefits of business ownership in Dubai?
If you’re wondering “what are the major benefits of business ownership in Dubai?”, you’ll be pleased to hear that Dubai company ownership presents significant advantages for foreign entrepreneurs and investors. The UAE allows 100% foreign business ownership across mainland, free zone and offshore structures, setting a favourable environment for business establishment and expansion. In addition to ownership flexibility, Dubai offers a highly attractive tax regime with 0% personal income tax, 0% capital gains tax and competitive corporate tax rates or in some cases, no corporate tax at all. This business-friendly fiscal environment not only supports local economic growth but also enhances Dubai’s appeal as a strategic global business hub, attracting diverse enterprises seeking stability, profitability and operational efficiency.
Moreover, Dubai’s strategic location at the crossroads of East and West enhances its appeal. The city’s state-of-the-art infrastructure, advanced telecommunications network and efficient logistics facilities further support seamless operations and connectivity. Coupled with a business-friendly regulatory framework, which prioritises ease of doing business, Dubai provides a conducive environment for start-ups and multinational corporations alike to thrive and expand internationally.
This holistic approach to business support, combined with a stable political environment and a culturally diverse workforce, solidifies Dubai’s reputation as a premier destination for ambitious entrepreneurs looking to establish and scale their businesses with confidence and success.
If you are one such entrepreneur, get in touch with Europe Emirates Group today to discuss your business registration options.
Written by
Adrian Oton
CEO, Europe Emirates Group
