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Why the UAE

100% Foreign Ownership in the UAE

Federal Decree-Law No. 26 of 2020, in force from early 2021, ended the rule that a mainland company needed a 51% Emirati shareholder or a local agent for most activities. Foreign investors can now own up to 100%, as they already could in the free zones.

Updated October 2026 · Figures checked 21 October 2026

Foreign ownership of most mainland companies, up from 49%
100%1
Foreign ownership of most mainland companies, up from 49%
Of shares a company can offer in an IPO, up from 30%
70%1
Of shares a company can offer in an IPO, up from 30%
Free zones with 100% foreign ownership
40+2
Free zones with 100% foreign ownership

100% Foreign Ownership in the UAE

What changed

  • The majority Emirati shareholder or local partner requirement was abolished for mainland companies.
  • Branches of foreign companies no longer need a UAE national service agent.
  • Companies converting to joint stock companies can offer up to 70% of their shares in an IPO, subject to approval.
  • Federal Decree-Law No. 32 of 2021 on Commercial Companies consolidated the changes.

Source: UAE Government Portal: Full foreign ownership of commercial companies1

Where limits remain

A Cabinet committee identifies activities of strategic impact, which can carry their own licensing conditions and ownership limits. Activities that cannot be fully foreign-owned include security, defence and military activities; telecommunications; banks, exchange, financing and insurance; commercial agencies; Hajj and Umrah services; and fishing and pearl diving.1

Sources

  1. UAE Government Portal: Full foreign ownership of commercial companies
  2. UAE Ministry of Economy and Tourism: Free zones for company incorporation

Figures checked 21 October 2026. Prepared by Invest-Emirates.ae for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.

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