100% Foreign Ownership in UAE Mainland Companies

Exploring the Benefits of 100% Foreign Ownership in UAE Mainland Companies

In a short period, the UAE has developed into a global hub for business and investment by offering attractive opportunities to entrepreneurs and investors. One of the most important changes that has increased the attraction of international investors is 100% foreign ownership for mainland companies. This huge move has changed the commercial environment of the UAE. Additionally, it provides high business flexibility to work and grow in one of the most dynamic marketplaces of the world.

In this post, we will discuss the advantages of 100% foreign ownership of UAE mainland companies. Also, we will discover the impact of a new policy on global investors and why the UAE is a captivating destination for international companies.

What is the Definition of 100% Foreign Ownership in UAE Mainland Companies?

Foreigners who wanted to begin a business in the UAE mainland had to associate with a local person known as Emirati who owned almost least 51% share of the company. Regardless, the UAE government has changed the laws for the mainland companies. From June 2021, foreign investors can own mainland companies in various sectors without any local partner.

This change is part of the new strategy of the UAE government to attract international investors, improve economic development, and change the economy away from oil reliance. With the implementation of 100% foreign ownership rules, investors now have complete control over their companies. Additionally, they are not required to share ownership with a UAE citizen partner.  

Key Advantages of 100% Foreign Ownership in UAE Mainland Companies

1. Complete Control and Flexibility

The most prominent advantage of 100% foreign ownership is that the foreign investors have complete control over their business operations. In the past, foreign companies have had to depend on the local partner for every business operation. However, it creates issues in decision-making and control because the local partner has the majority shares. 

Foreign business owners can make all decisions for hiring employees and setting the course of their company without any need of a local partner. This freedom provides more flexibility in business operations and decision making. This allows the entrepreneurs to follow their ideas more effectively.

2. Access to the UAE Mainland Market

The UAE mainland has direct access to the local market, which is an additional benefit for operating in free zones. Mainland companies do not have any limitations to a specific geographic location. The mainland companies can conduct business across the UAE, even with government agencies. The mainland companies can access the large consumer base of the UAE. 

Also, the mainland company offers flexibility to collaborate with other companies and sectors near to the UAE. The business owners have more flexibility to expand their business.

3. There are No Restrictions on Business Activities

One of the main advantages of 100% foreign ownership is that it allows a wide range of economic activities. Mainland corporations can operate in any industry without limits, whereas the free zone companies are limited to some commercial operations. 

The mainland companies have more flexibility in industries such as retail, hotel, and real estate than free zone companies.

4: Enhanced Credibility and Business Reputation

The mainland company of the UAE can improve the credibility of your company.  The UAE mainland companies have the benefit of the strong economy, regulated business climate, and geographic position of the UAE. Mainland companies are seen as more well-established and trustworthy than free zone companies.

This improved reputation of the mainland company plays an important role in making connections with clients, suppliers, and investors. Moreover, companies can have more long-term success in the business.

5. Flexibility in Office Space and Location

The free zone companies are sometimes limited to operating inside a free zone. However, the mainland companies have the freedom to pick their company location anywhere in the UAE. Foreign investors can setup their commercial offices in commercial areas like Dubai, Abu Dhabi, and Sharjah. These areas provide access to major clients and consumers.

The mainland companies have the access to various commercial buildings, such as office spaces to warehouses.

6. Access to Government Contracts

The mainland which are located in UAE or international companies have to secure government contracts to cooperate with public sector agencies. Companies in the UAE mainland are allowed to work on government contracts, and the free zones are often restricted to doing it. 

Government contracts provide benefits to businesses as they provide access to large-scale projects, stable cash flow, and important network options.

7. Easier Expansion

Foreign investors now have the freedom to extend their operations into other markets or industries without being restrained by free zone laws. Mainland companies have more freedom in improving their operations, such as buying new offices, expanding services, or expanding into neighboring Gulf Cooperation Council (GCC) nations. 

Furthermore, investors can have access to a wide range of qualified individuals from both the local and foreign labor markets.

How Flying Colour Business Setup Can Help You Navigate Complete Foreign Ownership?

Flying Colour Business Setup is an experienced business consultant in the UAE, which is specialized in guiding entrepreneurs and investors through the process of establishing mainland enterprises with 100% foreign ownership. We provide a variety of range of services, such as:

• Company formation assistance: Our staff helps you from start to finish with business registration, license investment, and adherence to UAE rules and regulations.
• Legal and Regulatory Guidance: We will help you complete all the legalities in the formation of your company. We help you to know your rights and duties as a foreign investor.
• Visa and Immigration Services: Flying Colour Business Setup helps you in obtaining the appropriate resident and work visas for yourself and your employees.
• Workplace Space Solutions: We assist you in selecting the ideal location for your business. We will guide you through some commercial real estate options.
• Ongoing help: We offer ongoing help to make sure that your business operates successfully with rules and regulations.

Working with Flying Colour Business Setup gives you an understanding of the UAE industry and helps you to launch and expand your business smoothly. 

Frequently Asked Questions (FAQ) About Exploring the Benefits of 100% Foreign Ownership in UAE Mainland Companies

1. Which industries can have 100% foreign ownership of mainland companies of UAE?

A: The UAE government provide 100% foreign ownership for industries such as real estate, retail, hotel, technology, manufacturing, and many more. However, some industries, such as oil and gas have unique rules.

2. What are the effects of 100% foreign ownership on the company in the UAE?

A: 100% foreign ownership allows you to have full control over your business operations, and you can make all decisions independently. 

3. Do I need a local sponsor to establish my mainland company?

A: No.  According to the new laws, mainland companies do not require a local sponsor or partner to establish a mainland company. You can own your entire business without any need to split it with a UAE citizen.

4. Can I recruit foreign employees for my mainland company?

A: Yes, mainland companies may hire foreign staff and have access to hire talented staff from both the UAE and foreign. Additionally, you will be able to sponsor visas for your staff. 

Therefore, to learn more about Exploring the Benefits of 100% Foreign Ownership in UAE Mainland Companies, Book a free consultation with one of the Flyingcolour team advisors.

The article was published on 27/03/2025. It is important to note that the federal policies and updates mentioned may have changed since then. For the most current information, please contact our consultant!