Yes, a foreigner can obtain a 100% ownership business license in the UAE without the sponsorship of a local citizen, thanks to reforms introduced by the UAE government. This is possible under certain conditions and in specific business sectors. Here’s an overview:
- 100% Foreign Ownership in Mainland Companies
- Since 2021, the UAE allows 100% foreign ownership for mainland companies in most industries.
- This eliminates the previous requirement for a local sponsor or UAE national to own 51% of the business.
- The specific activities eligible for full foreign ownership are determined by the Department of Economic Development (DED) in each emirate.
- Free Zones
- Free zones in the UAE have always allowed 100% foreign ownership.
- Businesses in free zones can operate without local sponsorship but are limited to conducting business within the free zone or internationally.
- Examples of popular free zones:
- Dubai Multi Commodities Centre (DMCC)
- Jebel Ali Free Zone (JAFZA)
- Abu Dhabi Global Market (ADGM)
- Sharjah Media City (Shams)
- Activities and Sectors
- Full foreign ownership is permitted in most commercial and industrial sectors, but some strategic or sensitive sectors, such as oil, gas, telecommunications, and certain professional services, may still require local partnerships.
- The UAE government maintains a Negative List of sectors where foreign ownership is restricted.
- Steps to Set Up a 100% Foreign-Owned Business
- Choose a Business Activity: Ensure the chosen activity is eligible for 100% ownership.
- Select a Location: Decide between mainland or a free zone based on the business scope.
- Register with Authorities:
- Mainland: Register with the DED of the emirate.
- Free Zone: Register with the specific free zone authority.
- Obtain Approvals: Secure initial and final approvals, including trade name and activity clearance.
- Submit Required Documents: Passport copies, business plan, and other legal documents.
- Pay Fees and Issue Licenses: Fulfill fee requirements and receive the business license.
- Benefits of 100% Ownership
- Complete control over the business and profits.
- No need for profit-sharing or partnership with a local sponsor.
- Access to a growing and dynamic market.
