Explaining 100% Foreign ownership in the UAE (2023 Updated)
Some businesspersons think they cannot call their company their own if they do not own the majority of it. Assuredly, most Middle Eastern countries did not allow this to foreigners. However, one took an innovative step in allowing ex-pats 100% LLC ownership in the UAE. In this article, we will explain the 100% ownership for foreign investors in the UAE. Above all, it involves learning how to make you eligible for a UAE 100% ownership. So, come and start your business in Dubai or Abu Dhabi after reviewing the following topics in detail: 1. How was foreign ownership in the UAE in the past? The UAE began its way to improve its economy a long time ago. For instance, they started offering visa services to allow foreigners to live and work in the country. But what if you wanted to start a business in Dubai as a foreigner? In this sense, the UAE allowed you to start a business in mainland Dubai as a foreigner. However, you could not do so without local sponsorship. In other words, a UAE national had to own at least 51% of your company. On the contrary, recent years showed the authorities of the UAE that foreign investment is the best way to promote economic growth in the country. As a result, they decided to start allowing 100% ownership in the UAE for foreign citizens. So, what does this mean? 2. What is new regarding 100% ownership in the UAE? Above all, 100% foreign ownership in the UAE means ex-pats can set up their business without needing a local partner. By all odds, you may think that this only applies to locations such as the Dubai Internetcity Freezone. Nonetheless, it applies to every place in the UAE. On the other hand, it is worth mentioning that the type of business you want to set up is not a limitation either. Ergo, you can set up your accounting services company in Abu Dhabi with 100% ownership without problems. Assuredly, it will give you the success you dream about. However, there are some limitations if you want to belong to the 100% ownership in the UAE list. Indeed, most relate to your eligibility as a foreign business owner in Dubai or Abu Dhabi. Therefore, how can you be eligible for 100% ownership in Dubai? 3. How to be eligible for 100% foreign ownership in the UAE The UAE is a country where every Emirate has its laws and regulations. For instance, setting up a business in mainland Abu Dhabi is not equal to doing so in Dubai. But does this trend also apply to 100% foreign ownership in the UAE? Undoubtedly, yes, it does. Most importantly, it reveals why being eligible for 100% ownership in the UAE involves different features in every Emirate. Fortunately, we will help you by discussing how to achieve eligibility for each one. In addition, remember that setting up your Human Resources Outsourcing Company also implies different legal procedures in each Emirate. So, assess them to become a member of the 100% ownership in the UAE list. By all odds, you will find nothing but great news because of it. Let us discuss how to be eligible for 100% foreign ownership in the UAE today: 3.1 Dubai Dubai is an Emirate with several excellent places to begin a successful business journey. For instance, you can set up an IT company in the Dubai Silicon Oasis and establish multiple alliances in the industry. However, how can you be eligible for 100% ownership in Dubai mainland? In this sense, UAE authorities allow 100 percent ownership in the UAE for foreigners who choose one of 1,061 economic activities available to this feature in Dubai. Furthermore, you can visit the Department of Economic Development site to discover this activities list. On the other hand, ex-pats with a professional license in Dubai cannot get UAE 100% ownership without a local service agent. After all, UAE authorities seek to benefit entrepreneurs with this policy. Therefore, professional service providers are not eligible for it. 3.2 Abu Dhabi Similarly to Dubai, Abu Dhabi also has terrific locations you can use to set up a business. For example, you can turn your business idea into a company in the Khalifa Industrial Zone (KIZAD). Nonetheless, can you have 100% ownership of your company in Abu Dhabi? Unfortunately, authorities in Abu Dhabi still use laws that do not allow 100% foreign ownership in the UAE. As a result, you can set up your business there only with the assistance of a local sponsor. Indeed, it means they still use the 51-49 ownership policy regarding ex-pats. Nevertheless, it does not mean bad news if you cannot have UAE 100% ownership in Abu Dhabi. On the contrary, the Emirate is still an excellent location to use your business trade license. In other words, do not see the inability of 100% ownership as an issue. 3.3 The remaining Emirates Although Dubai and Abu Dhabi are the strongest Emirates from a financial vantage point, you can also set up your company in one of the remaining five. After all, a business in Sharjah Airport Freezone can distribute its products efficiently. But do they allow 100% foreign ownership in the UAE? The correct answer to this essential question is: not yet. Indeed, Emirates such as Sharjah and Umm Al Quwain plan to set up policies that allow 100% ownership in the UAE. Ergo, setting up your 100% owned business there will require you to wait. In short, it is a matter of time before we see 100% ownership throughout the entire United Arab Emirates. However, you may be wondering why they want to follow this trend. In this sense, our following subject will show you their reasons and more. 4. Why UAE authorities allowed 100% ownership for foreign investors in the UAE? The UAE has several tools to promote economic growth besides 100% ownership. For example, they can issue an Industrial Trade License for local and overseas businesses
