Can a Foreigner Own a Company in Dubai?

Dubai is a leading global business hub, attracting investors and entrepreneurs from around the world. One of the most common questions among foreign investors is: Can a foreigner own a company in Dubai? The answer is yes—foreigners can own 100% of their business in Dubai under specific conditions.

The UAE government has introduced business-friendly policies to encourage foreign investment, making Dubai an ideal place for business setup.

100% Foreign Ownership in Dubai

Previously, foreign investors looking to establish a mainland company in Dubai needed a local Emirati sponsor who would own 51% of the business.

However, under recent reforms, the UAE now allows 100% foreign ownership in most business activities, particularly in the mainland and free zones.

Company Structures That Allow Full Foreign Ownership

Foreigners can fully own their businesses in Dubai through the following business structures:

1. Free Zone Company

Dubai has more than 30 free zones, offering 100% foreign ownership, tax exemptions, and simplified company registration processes. Some of the most popular free zones include:

• Dubai Multi Commodities Centre (DMCC)
• Jebel Ali Free Zone (JAFZA)
• Dubai Silicon Oasis (DSO)
• Dubai Internet City (DIC)

Benefits of Free Zone Companies:

• 100% foreign ownership، No corporate taxes، Asset protection and confidentiality، Cost-effective business structure، Simplified visa and business setup process.

can a foreigner own a company in Dubai?

2. Mainland Company

Thanks to recent legal reforms, mainland companies can now be 100% foreign-owned in most sectors. Businesses registered under the Dubai Economic Department (DED) no longer require a local sponsor for many activities, allowing full foreign ownership in various industries.

Benefits of Mainland Companies:

• Ability to trade anywhere in the UAE and internationally
• No restrictions on office location
• Eligibility to bid for government contracts
• Wider business scope compared to free zone companies

3. Offshore Company

An offshore company is another option for foreign investors looking for tax benefits and asset protection. Offshore companies cannot conduct business within the UAE but can operate internationally.

Benefits of Offshore Companies:

100% foreign ownership، No corporate taxes، Asset protection and confidentiality، Cost-effective business structure.

Steps for Foreigners to Set Up a Business in Dubai

1. Choose the Right Business Structure

Decide whether you want a free zone, mainland, or offshore company based on your business goals.

2. Select a Business Activity

Your business activity determines the licensing requirements and approvals needed. Dubai offers categories like commercial, professional, industrial, and tourism.

3. Register the Trade Name

Register your business name with the Dubai Economic Department (DED) or respective free zone authority.

4. Obtain the Business License

Depending on your business type, you will need one of the following licenses:

Commercial License (for trading businesses)

Professional License (for service providers)

Industrial License (for manufacturing businesses)

5. Lease Office Space

Mainland businesses require a physical office, whereas free zones may allow virtual offices.

6. Apply for Visas and Open a Corporate Bank Account

Once your company is registered, you can apply for residence visas for yourself and your employees and open a corporate bank account in Dubai.

Can a foreigner own a company in Dubai?

Cost of Setting Up a Business in Dubai as a Foreigner

The cost varies based on the company type and location. Estimated costs include:

Mainland Company: AED 15,000 – AED 50,000

Free Zone Company: AED 10,000 – AED 30,000

Offshore Company: AED 5,000 – AED 15,000

Conclusion

Dubai has made it easier for foreign investors to own and operate businesses with 100% ownership rights in many sectors.

Whether you choose a mainland, free zone, or offshore setup, Dubai offers a business-friendly environment, tax benefits, and world-class infrastructure for entrepreneurs worldwide.