Dubai has made it possible for foreign entrepreneurs to own their businesses 100% without needing a local partner.
Not long ago, if you started a mainland company in Dubai, you could only hold 49% of it – the rest had to be owned by a UAE national sponsor. Today, that old 49/51 rule is history.
In 2021, the UAE government amended its laws to eliminate the local shareholder requirement for most business activities, opening the door for expats to have full control.
This move aligns with Dubai’s long-term economic agenda to foster innovation and investment, and authorities are keeping the policy updated (Dubai’s list of permitted activities was reaffirmed in mid-2024).
The results? A surge of new businesses setting up in Dubai – the city even saw a 58% jump in new licenses in early 2022 after the reform.
It’s a game-changer that makes Dubai even more attractive for investors and small business owners.
Which Business Activities Qualify for 100% Ownership?
Almost all types of businesses now qualify for full foreign ownership in Dubai’s mainland. Dubai’s Department of Economy & Tourism has approved over 1,000 commercial and industrial activities where foreigners can own 100% of the company.
In practical terms, unless your business falls into a very sensitive sector (like banking or defense), you can likely own it entirely.
Here are some major categories of business activities open to 100% expat ownership:
- Trade, Retail & Hospitality: Want to run a shop, an e-commerce site, an import-export firm or even a restaurant?
Typical trading companies, retail stores, and hospitality ventures (cafés, hotels, tour agencies) can all be fully foreign-owned now.
- Manufacturing & Industry: Setting up a factory or any production business is feasible without a local partner.
Whether it’s food processing, textiles, electronics, or other manufacturing, Dubai welcomes 100% foreign-owned industrial ventures to boost local production.
- Services & Tech Companies: Most service-oriented businesses and tech startups are eligible for full expat ownership.
This includes consulting firms, marketing agencies, IT and software companies, freelance professionals, education or training providers, etc.
From a small consulting practice to a fintech startup, you can own your mainland company outright.
- Real Estate & Construction: Many real estate development, property management, and construction companies also qualify for 100% ownership.
As long as you meet the licensing requirements (for example, certain qualifications for real estate brokerage or contracting), you don’t need an Emirati partner to start these businesses.
(The official list of activities in Dubai economic department spans hundreds of specific business lines. You can get advice from a business setup consultant to confirm that your exact business idea is on the allowed list.)
You can now fully own anything from a boutique or restaurant to a tech startup or consultancy – something unthinkable just a few years ago.
A Few Exceptions to Note
Only a few strategic sectors are not open to full foreign ownership. These industries are considered sensitive to the UAE’s interests and still require a majority UAE shareholder (or special permission).
Notable exceptions include banking and insurance (financial services), telecommunications, and defense/military-related industries.
Businesses under the commercial agency law (where a local agent is the exclusive distributor for a foreign company) also remain restricted. If your venture is in one of these niches, you’ll need a local partner or a different setup.
The good news is for 95% of business types, this isn’t a concern – most investors will not be operating in those restricted fields.
Making the Most of 100% Ownership – Next Steps
Taking advantage of this 100% ownership policy is straightforward. You’ll follow the normal process to register your company and get a trade license from Dubai’s authorities, but now you can do it without giving away any equity.
It’s wise to ensure your business activity is correctly listed and meets any regulations (for instance, some professional services might require certain credentials, and some activities need external approvals).
Many entrepreneurs opt to consult with a business setup service to handle the paperwork and smooth out the process.
Bottom line: Dubai’s pro-investor policies give you the freedom to launch your venture on your terms. If you’re excited to start a business in Dubai, you no longer have to worry about finding a local sponsor – you can be the sole owner of your company and still tap into the huge Dubai market.
If you need personalized advice, feel free to reach out for a consultation – our team has helped many investors successfully set up in Dubai.
With the 100% ownership rule on your side, there’s no better time to take the leap and turn your business idea into reality in Dubai.
Good luck, and let your entrepreneurial journey begin!
