100% Foreign Ownership in Dubai: What Changed & Who Qualifies
Since 2021, most mainland activities allow full foreign ownership — no Emirati partner required. Here's what changed, which activities still differ, and what it means for you.
For decades, opening a mainland company in the UAE meant taking on a local Emirati partner who held 51% of the shares. That changed. Understanding the reform helps you avoid outdated advice — and unnecessary partnership arrangements.
What changed in 2021
The Commercial Companies Law reform (Federal Decree-Law No. 32 of 2021) removed the mandatory 51% local-ownership requirement for most mainland activities. Foreign founders can now own 100% of a mainland company across more than a thousand commercial and industrial activities — no local partner, no profit-sharing arrangement.
Free zones, for context, have always offered 100% foreign ownership. So today, both routes let you keep full control.
What still differs
A short list of activities considered to have strategic impact — in areas such as defence, security and certain resource sectors — may retain ownership restrictions or require a local service agent for administrative purposes. This is determined by your specific activity code, so check yours before assuming.
Some professional licences also historically used a "local service agent" — an administrative role, not an ownership stake — and the picture varies by emirate and activity.
What it means for you
- You keep full ownership and profits. No 51% partner, no nominee arrangements.
- You keep control. Decision-making sits with you, not a silent local shareholder.
- The free zone vs mainland choice is now about market access, not ownership. Since both allow 100%, decide based on where your customers are and whether you need a physical UAE presence (see our free zone vs mainland guide).
Watch out for outdated advice. Some sources — and some agents — still describe the old 51% rule. If someone tells you that you must take a local partner for a standard commercial activity, get a second opinion.
Want to confirm ownership rules for your exact activity? Ask our team — we'll check your activity code before you spend a dirham.
Frequently asked questions
01Do I still need a local sponsor to open a company in Dubai?＋
In most cases, no. Free zones have always allowed 100% foreign ownership, and since the 2021 Commercial Companies Law reform most mainland activities also permit full foreign ownership without an Emirati partner. A short list of strategic-impact activities may still require local participation or a local service agent.
02Which activities still need a local partner?＋
A limited list of activities of strategic impact — in areas like defence, security and certain resource sectors — may retain ownership or agent requirements. Your specific activity code determines this, so it's worth checking before you commit.