Can foreigners own 100% of a business in Dubai?
Yes, for most activities, since 2021. The "you need a 51% local partner" rule that still circulates is outdated advice from before the law changed. It's one of the most persistent myths we hear from first-time founders, and it costs people real money when they accept a local-partner arrangement they no longer need.
What actually changed
Federal Decree-Law No. 26 of 2020, later consolidated into Federal Decree-Law No. 32 of 2021, removed the old requirement for a 51% Emirati shareholder on mainland companies. The Dubai Department of Economy and Tourism (and Abu Dhabi's Department of Economic Development) subsequently published lists of over 1,000 commercial and industrial activities now open to 100% foreign ownership on the mainland.
What's still restricted
| Category | Examples |
|---|---|
| Security and defense | Security services, military-related activities |
| Financial services | Banking, money exchange, finance companies, insurance |
| Strategic infrastructure | Telecommunications, currency printing, energy, oil and gas, nuclear activities |
| Religious and cultural | Hajj and Umrah services, Quran centers |
| Fish traps | The one specific activity still requiring 100% UAE national ownership |
This list reflects current 2026 guidance. Activity classifications are reviewed periodically by the relevant Emirate's economic department, we confirm your specific activity's current ownership status before you commit to a structure.
Free zones were never affected by this
This is worth saying plainly: free zone companies have allowed 100% foreign ownership since free zones were created, decades before the 2021 mainland reform. If your business doesn't need to trade directly with UAE mainland customers, the ownership question was never actually a reason to avoid a free zone, it was always 100% yours.
The detail that still confuses people: the local service agent
Certain professional (as opposed to commercial) mainland licenses still require a Local Service Agent, a UAE national who facilitates government paperwork for an annual fee. This is routinely confused with ownership, it is not. A local service agent holds zero equity, zero management control, and zero profit share in your company. They're a paid administrative facilitator, not a partner. If anyone tells you a local service agent requirement means you don't have full ownership, that's wrong.
The ownership question was solved in 2021. The question that actually matters now is which specific activity you're licensing under, and whether it's on the open list or the restricted one.
How to check your specific activity
- Confirm the exact activity code you'll be licensed under, not a general category.
- Check it against the current Department of Economy and Tourism (or relevant Emirate's) approved-activities list.
- If it sits in a strategic or restricted category, ask what participation structure is actually required, rather than assuming 51/49 by default.