‎100 % Foreign Ownership in UAE‎

UAE approves 122 economics activities across 13 sectors eligible for up to 100 percent foreign ownership. This UAE Cabinet decision provides an excellent opportunity for investors to acquire shares in several economic activities and businesses in various industrial sectors.

This landmark decision of 100 percent foreign ownership marks a significant change from the previous law under which foreigners had to seek a local partner to be able to set up a business in the UAE. Before this law, international companies wishing to establish an onshore business in UAE had to team up with a UAE national/native who must own 51% of the company shares.

Positive List (Eligible Sectors)

The specific industrial sectors, including these 122 economic activities which shall have 100 percent ownership include:

1. Agriculture

2. Renewable Energy

3. Information and Communication

4. Food Services

5. Hospitality

6. Logistics

7. Manufacturing

8. Space

9. Transport

10. Professional, Scientific and Technical Activities

11. Educational Activities

12. Healthcare

13. Art and Entertainment

14. Construction

Through these sectors, the UAE government has provided a lot of opportunities for foreigners who wish to set up their businesses in the UAE. With this provision, the UAE government aims to attract foreign investment into new sustainable energy sectors, including solar panels, green technology, and power transformers.

Some of the activities included in the positive list is the manufacturing of sports goods, electrical goods, and toys, consultation services, photography, construction, secondary and higher education, hotel management, music and arts, hospitals, etc.

Negative List (Restricted Sectors)

FDI law also published a negative list of sectors where 100 percent of foreign ownership shall remain restricted. It includes:

1. Oil and Gas

2. Banking and Finance

3. Utilities

4. Road and Air Transport

5. Telecoms

6. Medical retail (including pharmacies)

Local Governments and Foreign Ownership

The UAE government has also indicated that local governments have a right to decide on the percentage of foreign ownership in the case of each sector and activity. The 100 percent foreign ownership decision aims to make UAE an international hub for ecommerce and the best place to do business. His Highness Sheikh Muhammad Bin Rashid says:

“Local Governments will identify the percentage of ownership in each activity according to their circumstances… Our goal is to stimulate, activate, and facilitate businesses… We want to open and expand new economic sectors…We want to attract new investors and new talents and enhance the global competitiveness of our national economy.”

The 100 percent foreign ownership law will not only increase productivity across UAE but also result in job creation and less need to import goods as domestic production is likely to grow as a result of this law.

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This 100 percent foreign ownership also provides various opportunities for scientific and technological innovation and growth across the identified industrial sectors.

The FDI unit and local governments of each emirate will issue separate guidance with respect to limits of foreign ownership percentage for the 122 economic activities. With this cabinet decision, the UAE government is aiming to increase economic activities across the state in areas like supply chain, transport, and logistics.

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