Dubai attracts entrepreneurs with strong infrastructure, location, and investor-friendly policies. But foreign investors often ask: how much ownership can foreigners hold in a Dubai company in 2025?

Recent reforms to UAE company law have dramatically changed the answer. Today, foreign investors can own up to 100% of many mainland companies following federal corporate law changes (Federal Decree-Law No. 26/2020) and subsequent implementing rules. Implementation began in 2021, and emirate authorities publish positive lists and conditions that must be checked for each activity.

In this article, we'll explain what these changes mean for mainland business setup in Dubai, explore how full foreign ownership works, and guide you through the process of company formation in Dubai. Whether you're planning a new company formation in Dubai, UAE, or exploring your expansion strategy, this guide covers everything you need to know.

Understanding Business Setup in Dubai, UAE

Before explaining ownership rules, it's essential to understand what a business setup in Dubai, UAE, really means. There are three main types of jurisdictions for company formation:

• Mainland – Licensed by Dubai Economy and Tourism (formerly DED). Companies can operate anywhere in the UAE and take government projects.
• Free Zone – 100% foreign ownership, but limited to operating within that Zone or for export purposes.
• Offshore – Often used for holding companies, asset protection, or international trade outside the UAE.

Setting up a mainland business in Dubai is the ideal choice if you want to trade directly in the UAE market, open retail stores, or work with local clients. It gives you full access to the domestic economy and, as of 2025, greater ownership control than ever before.

How Ownership Rules Have Evolved in Dubai?

Historically, foreign investors were limited to a 49% ownership stake in a mainland company, with a UAE national sponsor holding the remaining 51%. This structure made many investors choose free zones instead.

However, under Federal Decree-Law No. 26 of 2020 and subsequent amendments, the UAE introduced a new era of full foreign ownership for many onshore companies. The rule took effect nationwide, including in Dubai, and has remained in effect into 2025.

What's Allowed in 2025

• For the majority of commercial and industrial activities, foreign investors can now own 100% of the company.
• Only a small number of strategic sectors, specifically oil and gas, defense, and certain financial services, still require a local partner.
• Each emirate (including Dubai) maintains a "positive list" of business activities open for full foreign ownership.

This means that, in most cases, investors starting a company formation in the Dubai mainland can retain complete control of their business.

Important Caution: Each emirate issues its own 'positive list' and some activities remain restricted (the 'negative list'). Regulated sectors, e.g., oil & gas, defense, certain telecom and financial services, may require local participation or regulator approval. Always check the federal and emirate lists for your exact activity.

Benefits of Mainland Business Setup in Dubai

Choosing a mainland business setup in Dubai provides several strategic benefits compared to free zones:

• Access the UAE market for unrestricted domestic trade
• No local sponsor required for most businesses
• Repatriate all profits to your home country
• Bid on government contracts and projects
• Get multiple visas for investors, employees, and families

Due to these advantages, an increasing number of foreign entrepreneurs are now opting for company formation on the Dubai mainland, rather than limiting themselves to a free-zone jurisdiction.

Step-by-Step Guide to Starting a Mainland Business Setup in Dubai (2025)

If you're planning to start a business in Dubai, UAE, here are the steps according to 2025:

Note: Working with an experienced, independent UAE business setup consultant like Setupzo simplifies the paperwork and approvals.

Key Considerations and Sector Exceptions

While 100% ownership is now widely available, some sectors, such as oil and gas, defense, and telecommunications, still have restrictions in place.

• Oil and gas exploration
• Telecommunications
• Military or defense activities
• Banking and insurance
• Utilities and transport

If your business falls under these categories, you may need partial local ownership or special government approval.

Additionally, compliance with licensing, visa, and documentation requirements remains crucial. Working with an expert consultant like Setupzo simplifies the process and ensures your mainland company formation in Dubai goes smoothly.

Why 2025 is the Best Time for Foreign Investors?

Dubai's continuous economic reforms make 2025 an ideal year for starting a business in Dubai, UAE. The government's commitment to foreign investment, simplified registration processes, and business-friendly tax policies create a favorable environment for investment.

The city's strategic position between East and West, world-class logistics, and booming digital economy further enhance its appeal. Whether you are launching a tech startup, trading company, or consultancy, Dubai's mainland offers unmatched flexibility and access.

Checklist for Successful Company Formation in Dubai Mainland

• Confirm your activity allows 100% foreign ownership
• Choose a business structure (LLC, branch, etc.)
• Register your trade name and obtain approvals
• Lease a physical office in the Dubai mainland
• Secure your trade licence and investor visa
• Open a bank account and start operations

Tip: Always use a reputable business setup consultant in Dubai to handle paperwork and compliance efficiently.

Conclusion

So, how much ownership can foreigners hold in a Dubai company in 2025?

The answer: in most cases, 100%. The UAE's groundbreaking company law reforms have opened the door for complete foreign control of mainland businesses, empowering global investors like never before.

Suppose you're planning to start a business setup in mainland Dubai. In that case, you can now enjoy complete ownership, profit repatriation, and access to the local market, all within one of the world's most dynamic economies.

With clear regulations, investor-friendly policies, and robust infrastructure, starting a business in Dubai, UAE, has never been more accessible.

Frequently Asked Questions (FAQs)

Here are some common questions that people also ask:

1. Can foreigners fully own a mainland company in Dubai?

Yes. As of 2025, most business activities in the Dubai mainland allow 100% foreign ownership. Only specific sectors of strategic importance still require partial UAE ownership or approval.

2. What's the difference between a mainland and a free-zone business setup?

A mainland company can trade anywhere in the UAE and work with government entities. In contrast, a free-zone company is limited to operations within its Zone or international trade.

3. Do I need a local sponsor for company formation in the Dubai mainland?

In most cases, no. Since the 2021 reforms, foreign investors can hold 100% of shares without needing a local sponsor, except in restricted sectors.

4. How long does it take to set up a mainland company in Dubai?

The process typically takes from a few days to several weeks, depending on approvals, document readiness, and the nature of the business. Once all documents are prepared, depending on your chosen business activity, approvals are obtained.

5. What are the costs of mainland business setup in Dubai?

Costs vary based on license type, office space, and visa requirements; however, setup fees generally range from AED 15,000 to AED 25,000 for small to medium-sized businesses.