Ownership in UAE: 100% Foreign Direct Investment Rules, Sectors & Licensing Guide (2026)

The United Arab Emirates (UAE) is one of the world’s most investor-friendly economies, driven by progressive reforms in ownership in UAE businesses. With a stable political system, transparent rules and regulations, and advanced infrastructure, the UAE has become a preferred destination for global entrepreneurs and multinational companies.

In 2026, ownership in UAE has reached its most flexible stage, allowing foreign investors to legally hold up to 100% ownership in many economic activities. These reforms support innovation, economic diversification, and long-term foreign participation across key sectors.

This guide provides a clear, compliant, and up-to-date explanation of ownership rules, eligible sectors, licensing procedures, and strategic considerations for investing in the UAE.

What Does Ownership in UAE Mean?

Ownership in UAE refers to the legal right of foreign individuals or companies to own, control, and operate businesses within the Emirates. Ownership rights are governed by federal investment laws and implemented through Emirate-level economic authorities.

Foreign investors may establish ownership through

• New company formation

• Acquisition of existing UAE businesses

• Investment in approved industrial or service projects

The UAE’s ownership framework is designed to balance economic openness with national strategic interests.

Legal Framework Governing Ownership in UAE

Ownership in UAE is regulated under Federal Decree-Law No. 19 of 2018 on Foreign Direct Investment, along with subsequent Cabinet and Emirate-level decisions.

Key legal principles include:

• Activity-based ownership eligibility

• Emirate-specific licensing authority

• Mandatory regulatory compliance

• Continuous operational oversight

The Ministry of Economy supervises national FDI policy, while local Departments of Economic Development (DEDs) issue licenses and approvals.

Ownership in UAE: 2026 Rules Explained

As of 2026, ownership in UAE allows foreign investors to hold 100% ownership in activities listed under the FDI Positive List. Approval depends on:

• Nature of the business activity

• Economic impact and compliance standards

• Capital and operational requirements

• Emirate-level regulatory approval

Foreign ownership rights remain valid only if licensing and reporting obligations are continuously met.

Positive List vs Negative List: Ownership Eligibility

Sectors Allowing 100% Ownership in UAE

The UAE has approved over 120 activities for full foreign ownership, including:

• Manufacturing and industrial production

• Agriculture and food processing

• Healthcare and pharmaceuticals

• Education and training services

• Logistics, transport, and warehousing

• Information technology, AI, and software services

• Tourism and hospitality

• Renewable and clean energy

These sectors are prioritized due to their contribution to innovation, sustainability, and employment.

Restricted Sectors (Limited Ownership)

Certain sectors remain restricted due to strategic or security considerations:

• Oil and gas exploration

• Defense and military industries

• Banking and insurance

• Telecommunications infrastructure

• Fisheries and postal services

Foreign investors cannot hold controlling ownership in these activities.

FDI Opportunities Across Different Emirates

Abu Dhabi FDI Policies

Abu Dhabi promotes high-value sectors like aerospace, clean energy, healthcare, and logistics through its Investment Office (ADIO). It offers incentives, subsidies, and advisory services to help international investors establish their base.

Dubai FDI Initiatives

Dubai provides a global platform for investors through free zones, flexible corporate laws, and strategic initiatives like Dubai FDI. It assists companies in business setup, market analysis, and investor support while ensuring ease of repatriation of profits.

Sharjah FDI Promotion

Sharjah focuses on industrial diversification and SME-friendly investment policies, promoting manufacturing, trade, and sustainable industries under its Sharjah Investment and Development Authority (Shurooq).

Types of Foreign Direct Investment in the UAE

1. Horizontal FDI: When an investor duplicates their home-country business model in the UAE (e.g., expanding retail or services).

2. Vertical FDI: When investment occurs in different production stages — upstream or downstream (e.g., raw material sourcing or distribution).

3. Platform FDI: When the UAE serves as a regional hub for operations in nearby countries.

Step-by-Step Licensing Procedure for FDI in the UAE (2026)

To establish a foreign-owned company in the UAE under FDI laws, follow these steps:

1. Select the Activity: Choose a business activity listed under the FDI positive list.

2. Meet Capital Requirements: Ensure your business fulfills the minimum capital requirement for that activity.

3. Reserve a Trade Name: Choose an approved trade name that includes “Foreign Direct Investment.”

4. Apply for FDI License: Submit your FDI license application to the Department of Economic Development (DED) of the respective Emirate.

5. Obtain Approvals: Secure necessary regulatory and sector-specific approvals.

6. Open a Corporate Bank Account: Deposit at least 20% of the capital under the company name.

7. Pay Fees & Get License: Pay the applicable fees and receive your official FDI license.

8. Register with the Ministry of Economy: Complete registration for recognition under the UAE’s national FDI registry.

Benefits of Ownership in UAE

• 100% foreign ownership in approved sectors

• Full repatriation of profits and capital

• Zero personal income tax

• Advanced infrastructure and logistics

• Political and economic stability

• Strategic global location

• Long-term residency and Golden Visa options

Risks & Considerations Before Investing

While the UAE offers a favorable investment climate, investors should be aware of:

• Sectoral restrictions under the negative list

• Cultural and regulatory differences

• Compliance with Emirate-specific licensing procedures

• Due diligence on local partners (where required)

Proper consultation with a qualified business advisor ensures compliance and long-term success.

Why Ownership in UAE Is Ideal in 2026

In 2026, ownership in UAE stands out due to:

• Liberalized investment laws

• Transparent regulatory systems

• Strong digital and innovation economy

• Investor-focused reforms

• Long-term residency pathways

The UAE continues to attract investors from the US, UK, Europe, and Asia.

Conclusion: Begin Your Ownership Journey in UAE

Understanding ownership in UAE is essential for making informed and secure investment decisions. With clear laws, investor protection, and global market access, the UAE offers a strong foundation for sustainable business growth.

Apply for your Emirates Visa today and take the first step toward establishing a legally compliant and future-ready business presence in the UAE.