Going are the days when foreign investors looking to establish a business in Dubai mainland with the help of local Emirati partner who would own majority of shares of the company. This common model prevailing in Dubai often created limitations for entrepreneurs who wanted full control over their businesses.
Perhaps in recent years, significant legal reforms have transformed the business landscape in the UAE. Today, Dubai mainland company setup without a local partner is not only possible—it’s a growing trend.
Commercial Companies Law for Dubai Mainland Company Setup?
UAE government in 2021 amended the Commercial Companies Law which now allows 100% foreign ownership of businesses in many sectors previously restricted to shared ownership with a UAE national. This change applies to most commercial and industrial activities on the mainland, removing the mandatory 51% local sponsorship rule.
As a result, investors and entrepreneurs can now enjoy full operational control and profit retention in their mainland businesses—without needing a local partner.
Which Type of Businesses Qualified for 100% Ownership?
Although the new law applies to a wide range of business activities but still not all sectors are eligible for full foreign ownership. Activities related to national security, oil and gas, or certain strategic industries still require a local partner or special approvals.
100% foreign ownership in Dubai mainland company setup offer to all those businesses that fall under the list of approved commercial or industrial activities published by the Department of Economy and Tourism (DET) in Dubai. These include but are not limited to:
- Trading and general commerce
- IT services and consulting
- Manufacturing and production
- E-commerce and digital platforms
- Management consultancy
- Logistics and transport
Professional service licenses, such as those for legal advisors, architects, or consultants, were already eligible for 100% ownership under a sole establishment or civil company model—even before the legal reforms.
Benefits of Dubai Mainland Company Setup Without a Local Partner
Opting for a Dubai mainland company setup without a local partner offers several strategic advantages:
- Full ownership and control over your business operations
- Greater flexibility in decision-making and profit distribution
- Access to the entire UAE market without restrictions
- Ability to bid for government contracts, which Free Zone companies cannot
- Simplified company structure with no sponsor obligations or shared voting rights
What About the Local Service Agent (LSA)?
In the case of professional licenses, business owners may still need a Local Service Agent. However, this agent does not hold any ownership in the company and has no role in operations or decision-making. Their function is purely administrative and to assist with government paperwork.
Final Thoughts
Dubai mainland company setup without a local partner is now possible and provide excellent opportunity for entrepreneurs who want to tap into the UAE’s lucrative market all possible only in presence of progressive legal reforms that support foreign investment.
To ensure a smooth process, it’s advisable to consult with a licensed business setup consultant or PRO service provider. They can help you choose the right license type, verify eligibility for 100% ownership and complete all legal and administrative steps efficiently.