Introduction
Owning a business outright in the Dubai mainland used to feel out of reach. But now, with Dubai mainland 100% ownership, that’s exactly what’s possible and we’ll take you through how to do it. If you’ve been waiting to expand in the UAE without giving away equity, this is your moment.
What “100% Foreign Ownership” Actually Means
Until recently, foreign investors in the mainland UAE were capped at 49%, with a local sponsor holding the rest. That meant shared control, shared profits, and often extra hassle. But Federal Decree-Law No. 26 of 2020 scrapped that requirement for most sectors. You can now own 100% of your mainland company, without a local partner.
This matters because it changes the legal and financial foundation of doing business in Dubai. You’re not only in full control of profits and decisions, you’re also building a company that you can sell, expand, or restructure without depending on outside stakeholders.
Let’s break it down further:
- The Commercial Companies Law has been modified so that foreign investors are now allowed to own onshore companies, LLCs and other relevant structures, without local shareholders.
- Certain sectors remain prohibited, such as oil and gas, banking, telecoms and defence. These remain sensitive to government oversight.
- There are more than 2,000 economic activities where 100% ownership applies. That’s everything from consulting firms to e-commerce
Why This Change Matters
The UAE made this change to attract investment, talent, and new ideas to Dubai.
Here’s what this means for you:
- Control: You decide where the business goes without worrying about conflicting interests.
- Access: Unlike free zones, a mainland company lets you trade across the UAE without restrictions.
- Credibility: Many clients and government entities prefer dealing with mainland firms because they’re regulated and widely recognised.
- Future readiness: With Expo 2020’s legacy, global investors are looking at Dubai as a hub, and having full ownership makes the city more competitive against Singapore or Hong Kong
For many investors, this change removes the main barrier that kept them in free zones. Now they can set up a business in the mainland and still enjoy independence
Sectors Where Full Foreign Ownership Applies
Not every business can qualify, but the list of eligible sectors is long enough to cover almost every entrepreneur’s needs.
Here’s a snapshot:
- Technology and IT: Software development, cybersecurity, digital platforms, AI, and fintech.
- Healthcare and education: Clinics, private schools, medical training, and consultancy.
- Hospitality and tourism: Travel agencies, restaurants, hotels, tour operators.
- Retail and trading: Online shops, import/export companies, fashion and lifestyle brands.
- Manufacturing and logistics: From light industry to supply chain companies.
Some examples make it clearer. A UK-based fitness entrepreneur can now open a gym chain across the Dubai mainland without needing a local partner. A tech startup from India can run a consultancy in Dubai and pitch directly to government projects. Even a logistics company from Europe can manage freight and warehousing while maintaining complete control.
Activities in sectors like defence, energy, finance, or telecom remain restricted, but for the majority of international investors, the doors are wide open.
Setting Up Your Company on the Dubai Mainland
The process sounds intimidating until you see the steps laid out clearly. Here’s how you move from idea to licensed mainland company.
Step 1: Pick an Eligible Business Activity
Check the Dubai Economy’s official list to confirm your activity qualifies for Dubai Mainland 100% ownership. Don’t skip this step; choosing the wrong activity can slow you down
Step 2: Choose Your Legal Structure
Most investors opt for an LLC because it’s flexible, limits liability, and is well-recognised. But sole establishments and civil companies exist if you’re in consulting or professional services.
Step 3: Reserve a Trade Name
Your company name matters. It must be representative of your business, non-offensive and must meet the criteria of DET. The licensing process is easier when the name is clear and professional.
Step 4: Get Initial Approval
Provide copies of the passport, the activity you are going to do, and other fundamental documents. As soon as DET approves, you can proceed with a clear conscience.
Step 5: Draft the Memorandum of Association (MOA)
This is the mainstay of your company. It establishes shareholding, management regulations and capital. Although you will be the sole owner, you still need to do it as a legal requirement.
Step 6: Secure Office Space & Ejari
Unlike free zones that allow virtual offices, the Dubai mainland requires a real office. Your tenancy must be registered with Ejari, the government rental system. This is a step that shows that you are physically present.
Step 7: Final Submission & Licence
Make all the submissions, MOA, Ejari, approvals and documents. Submit the government fees, and your Dubai mainland license will be issued.
Step 8: Visa & Labour Registration
Holding your licence, you are able to apply for residence visas for yourself, employees, and dependents. You’ll also need to register with the Ministry of Labour to legally hire staff.
At this stage, you’re officially operating on the mainland
What You Get (and What’s Required)
Setting up is just the start. Here’s what you gain and what you must keep in mind.
Benefits
- Complete control of profits and decisions.
- Liberty to trade in any emirate and across any country.
- The ability to access government contracts, which usually do not involve free zone companies.
- Favourable tax policies, no corporate or personal income tax, plus VAT at only 5%.
Requirements:
- Annual licence renewal.
- Office lease renewal through Ejari.
- Compliance with UAE labour laws, Emiratisation rules in certain sectors, and AML regulations.
- Proper accounting and possible audits, depending on your business activity.
Think of it as a trade-off. You gain independence, but you must also maintain accountability.
Common Mistakes to Avoid
Plenty of new investors hit snags. Here are a few you can sidestep:
- Choosing the wrong activity: Not every description matches your business exactly. Double-check with DET before filing.
- Skipping local market research: Complete ownership does not translate to success; research on your competitors and customer base.
- Neglecting compliance: Forgetting to renew your licence or disregarding reporting obligations will cost you money in fines.
- Underestimating costs: Calculate not only the licensing but also rent, visas, and staff.
Avoiding these pitfalls makes your journey smoother and cheaper.
If you’re still weighing your options, book a consultation with SkyPRO for your Dubai mainland business setup
The Bigger Picture for Dubai’s Economy
Zooming out, this change does more than help individual business owners. It positions Dubai as a serious rival to global hubs. By making Dubai mainland 100% ownership possible, the government signals that it wants to be the easiest place in the region to invest.
It’s part of Vision 2030: diversify beyond oil, grow knowledge industries, attract global capital, and support entrepreneurship. Every new foreign-owned mainland business contributes to that larger ambition.
To explore more about getting assistance for a Dubai mainland license, check our resource here.
Final Thoughts
The rules have changed in your favour. Dubai mainland 100% ownership lets you finally run your company without compromise. It removes the biggest barrier for foreign investors and opens the door to compete in one of the world’s most dynamic markets.
With the right planning, paperwork, and office in place, SkyPRO can help you own your business outright, scale it across the UAE, and hold every piece of the reward.
