Short answer: yes, for most activities. According to the UAE Government portal, Federal Decree-Law No. 26 of 2020 amended the Commercial Companies Law so that foreign investors can own up to 100% of an onshore (mainland) company, instead of the old 49% cap. The requirement for a majority Emirati shareholder or local agent was removed for most activities. A short list of strategic sectors is still restricted.
What changed
| Point | Before the change | Now |
|---|---|---|
| Foreign shareholding | Capped at 49% for most mainland companies | Up to 100% for most activities |
| Emirati majority shareholder | Required | Not required for most activities |
| UAE national service agent for foreign company branches | Required | Removed |
| Strategic-impact activities | Restricted | Licensing conditions set per activity; ownership limits may apply |
Source: u.ae, Full foreign ownership of commercial companies. The portal notes the changes were later consolidated in Federal Decree-Law No. 32 of 2021 on Commercial Companies.
Which activities are still restricted?
The UAE Government portal lists activities that cannot be fully foreign-owned, including security and defence, telecommunications, banking, exchange, financing and insurance, and categories such as commercial agencies, Hajj and Umrah organising, and fishing. If your activity sits near one of these, the regulator decides the ownership split, so check before you sign anything.
What 100% ownership does not change
- Activity approval. The emirate's licensing authority still approves your exact activity, and some activities need extra approvals from federal bodies (u.ae, steps to start a business on the mainland).
- Premises. Mainland businesses need a physical address; in Dubai the tenancy contract must be registered with Ejari (u.ae). Office cost is a real line in your budget.
- Banking and visas. Owning the company does not guarantee a corporate bank account or residence visas. Banks and immigration decide independently.
So mainland or free zone?
Free-zone companies can also be fully foreign-owned (see, for example, Meydan Free Zone). With ownership no longer the deciding factor for most activities, the real question is where your customers are, what office you need, and how many visas you plan. Our mainland vs free zone guide walks through that decision, and Dubai vs other emirates covers location.
How Lexoford helps
We check your activity against the current rules before you pay, then give you an itemised quote. Lexoford service fees are Starter AED 3,999 (licence + 1 visa), Business AED 4,999 (licence + 3 visas + Small Business Relief (SBR) eligibility check) and Premium AED 7,999 (licence + 5 visas + CT + VAT; ERP included). Government and free-zone fees are paid at cost on top. See company formation and the cost calculator. Lexoford is not a law firm; read what we don't guarantee.
FAQ
Do I need an Emirati partner or local sponsor for a mainland company?
Not for most activities. Since Federal Decree-Law No. 26 of 2020, most mainland activities can be 100% foreign-owned without an Emirati majority shareholder. Strategic-impact activities are the exception. Confirm your exact activity with the licensing authority before you apply.
Which activities cannot be 100% foreign-owned?
Activities with strategic impact. The UAE Government portal lists security and defence, telecommunications, banking, finance and insurance, and categories such as commercial agencies and fishing. For these, the regulator sets ownership and other conditions case by case.
Is 100% ownership the same in a free zone?
Ownership is similar; market access is not. Free-zone companies can also be fully foreign-owned. The difference is where you can trade, what office you need and how visas work. Use the mainland vs free zone guide to decide.
Does full ownership help me open a bank account?
No. Ownership structure is one input to a bank's compliance review, not a guarantee. Banks look at your activity, source of funds and substance. See how to open a UAE corporate bank account.