Short answer: yes, for most activities. According to the UAE Government portal, Federal Decree-Law No. 26 of 2020 amended the Commercial Companies Law so that foreign investors can own up to 100% of an onshore (mainland) company, instead of the old 49% cap. The requirement for a majority Emirati shareholder or local agent was removed for most activities. A short list of strategic sectors is still restricted.
What changed
| Point | Before the change | Now |
|---|---|---|
| Foreign shareholding | Capped at 49% for most mainland companies | Up to 100% for most activities |
| Emirati majority shareholder | Required | Not required for most activities |
| UAE national service agent for foreign company branches | Required | Removed |
| Strategic-impact activities | Restricted | Licensing conditions set per activity; ownership limits may apply |
| Emirati ownership requirement | 51% for most activities | Removed for most activities |
| IPO limit when converting to a joint stock company | 30% of shares | Up to 70%, subject to approval |
Source: u.ae, Full foreign ownership of commercial companies. The portal notes the changes were later consolidated in Federal Decree-Law No. 32 of 2021 on Commercial Companies. Federal Decree-Law No. 26 of 2020 came into effect in early 2021. Checked 2026-10-15.
Which activities are still restricted?
The UAE Government portal lists the activities that cannot be fully owned by foreigners: security and defence activities and activities of a military nature; telecommunications; banks, exchange, financing, insurance and bank note or coin production; and other categories: commercial agencies, Hajj and Umrah organising, Holy Quran recitation institutes, fish catching, natural pearl catching and marine animals catching. Under Federal Decree-Law No. 26 of 2020, the Cabinet may set up a committee of representatives of the relevant authorities to identify activities of strategic impact; based on its recommendations, the Cabinet determines these activities and sets specific licensing requirements. If your activity is close to one of these, confirm the ownership position with the licensing authority before you sign anything. Checked 2026-10-15.
What 100% ownership does not change
- Activity approval. The emirate's licensing authority still approves your exact activity, and some activities need extra approvals from federal bodies (u.ae, steps to start a business on the mainland).
- Premises. Mainland businesses need a physical address; in Dubai the tenancy contract must be registered with Ejari (u.ae). Office cost is a real line in your budget.
- Banking and visas. Owning the company does not guarantee a corporate bank account or residence visas. Banks and immigration decide independently.
So mainland or free zone?
Meydan Free Zone states that free-zone companies can also be fully foreign-owned (Meydan Free Zone). With ownership no longer the deciding factor for most activities, the real question is where your customers are, what office you need, and how many visas you plan. The mainland vs free zone guide walks through that decision, and Dubai vs other emirates covers location.
How Lexoford helps
Lexoford checks your activity against the current rules before you pay, then gives you an itemised quote. Lexoford service fee: Starter AED 3,999 (0–1 visa), Business AED 4,999 (2–3 visas) and Premium AED 7,999 (5 visas). Each additional visa adds AED 1,000 service fee beyond the visas your tier includes. Government and free-zone fees are paid separately at cost. Lexoford can assist with company registration on Dubai mainland. See company formation and the cost calculator. Lexoford is not a law firm; read What Lexoford Does Not Guarantee.
FAQ
Do I need an Emirati partner or local sponsor for a mainland company?
Not for most activities. Since Federal Decree-Law No. 26 of 2020, most mainland activities can be 100% foreign-owned without an Emirati majority shareholder. Strategic-impact activities are the exception. Confirm your exact activity with the licensing authority before you apply.
Which activities cannot be 100% foreign-owned?
Activities with strategic impact and a few other categories. The UAE Government portal lists security and defence, telecommunications, banks, exchange, financing, insurance and bank note or coin production, commercial agencies, Hajj and Umrah organising, Holy Quran recitation institutes, fish catching, natural pearl catching and marine animals catching. For strategic-impact activities, the Cabinet sets specific licensing requirements based on the committee's recommendations; confirm your activity with the licensing authority.
Is 100% ownership the same in a free zone?
Ownership is similar; market access is not. Free-zone companies can also be fully foreign-owned. The difference is where you can trade, what office you need and how visas work. Use the mainland vs free zone guide to decide.
Does full ownership help me open a bank account?
No. Ownership structure is one input to a bank's compliance review, not a guarantee. Banks look at your activity, source of funds and substance. See how to open a UAE corporate bank account.
Can a foreigner own 100% of a Dubai mainland company?
For most activities, yes. Federal Decree-Law No. 26 of 2020, in effect since early 2021, allows 100% foreign ownership of mainland companies across the UAE, including Dubai, except the restricted activities listed on the UAE Government portal.
Does a foreign company branch still need a UAE national service agent?
The UAE Government portal states that this obligation has been eliminated.
What does Lexoford charge for a mainland company setup?
Lexoford service fee: Starter AED 3,999 (0–1 visa), Business AED 4,999 (2–3 visas) and Premium AED 7,999 (5 visas); each additional visa adds AED 1,000 service fee beyond the visas your tier includes. Government and free-zone fees are paid separately at cost.