BUSINESS SETUP

Guide to 100% Foreign Ownership in UAE Mainland

Published on January 15, 2024

The United Arab Emirates has long been a hub for international business, but recent amendments to the Commercial Companies Law have revolutionized the investment landscape. The requirement for a UAE National Sponsor (holding 51% of shares) for mainland companies has been removed for most commercial activities, allowing foreign investors to own 100% of their businesses.

What Changed?

Previously, foreign investors wishing to establish a company on the UAE mainland were required to have a local partner. This structure often deterred investors who wanted full control over their operations and profits. The new amendments aim to boost the country's competitive edge and attract more foreign direct investment (FDI).

Key Benefits of 100% Ownership

Full Operational Control: Investors no longer need to rely on a local sponsor for decision-making.
No Side Agreements: Eliminates the need for complex side agreements to protect investor interests.
Lower Costs: Reduced costs associated with annual sponsorship fees.
Global Expansion: Easier to integrate the UAE entity into a global corporate structure.

Eligible Activities

While most commercial and industrial activities are now open to 100% foreign ownership, certain "strategic sectors" may still require local participation. These typically include activities related to defense, telecommunications, and oil & gas exploration. Founderae can help you verify if your intended business activity falls under the 100% ownership category.

How Founderae Can Help

Navigating these new regulations requires expert guidance. We assist clients in:

Determining activity eligibility.
Drafting compliant Memorandums of Association (MoA).
Processing license amendments for existing companies to transition to 100% ownership.
Liaising with the Department of Economic Development (DED).