Video Briefing

Offshore Citizen: Breaking News from Dubai: Changes in companies ownership structure

Dec 7, 2020Video Briefing6:20Watch on YouTube

Dubai now allows 100% foreign ownership of mainland UAE companies, a major change for investors and entrepreneurs seeking local business presence.

• Previously, mainland companies required an Emirati partner holding 51% and receiving 20–21% of profits, creating complexity and added costs. • Free zone companies remain an alternative, allowing international business but with restrictions on trading locally; residency permits tied to free zones required visits every 180 days. • Full foreign ownership of mainland LLCs improves international perception, simplifies banking, and may reduce operational costs. • Details of the new regulations are pending, with clarifications expected in December; practical implementation and exact procedures may still evolve. • UAE offers a low-tax environment, easy residency permits, employee sponsorship, and excellent infrastructure, including three major airports (Emirates, FlyDubai, Etihad hubs).

Takeaway: The UAE’s new policy enables foreign entrepreneurs to fully own mainland companies, enhancing local operations, banking access, and international credibility while maintaining the advantages of a zero-tax jurisdiction.