Transform your business dream into reality with Charles & Darwish Associates. Optimize your Dubai business setup effortlessly in the Free Zone, Mainland, and Offshore ensuring flexibility and growth opportunities. Leverage Dubai's growth with our tailored business setup solutions.
Get Free Consultation
The United Arab Emirates (UAE) had brought a significant change that foreign investors will now be allowed to have 100% onshore ownership in the country which came in implementation from 1st June 2021. Previously, foreign investors were required to have a local partner or sponsor, often holding a majority stake which would be around 51% or more, in order to establish a business in the UAE. This change has significantly boosted foreign direct investment (FDI) and further diversified the UAE’s economy. In this article, we will delve into the details of this prevailing policy and its implications for international businesses looking to enter the UAE market.
This transition has been made to boost FDI in the UAE and promote the flow of foreign investors to the UAE, elevating the UAE economy from multiple directions, whether it be the hospitality sector, tourism, business sector, education, health care sector, etc. UAE’s 100% ownership decision has contributed vastly to its economic growth, the effect of which can be seen over the past couple of years. Read ahead to learn more about FDI and the policies adopted by the UAE to promote it as a global investment destination.
The policy of allowing 100% foreign onshore ownership in the UAE brings forth a multitude of benefits for international businesses looking to establish a presence in the country.
In summary, the 100% foreign onshore ownership policy in the UAE not only offers greater autonomy for international businesses but also paves the way for increased FDI, enhanced competitiveness, and a more dynamic economy.
Imagine you are opening a new yoga studio because of its growing wellness industry. The steps and requirements for setting up your company with 100% foreign ownership are as follows:
The UAE has opened its doors to foreign investors, allowing them to fully own businesses in specific sectors across different emirates. The activities which are open for the FDI in the major emirates include the following:
Nearly half (over 1,000) of Dubai’s 2,300 economic activities can now be 100% foreign-owned. This includes trading, manufacturing, and even professional services (though with a local service agent requirement).
Over 1,100 commercial and industrial activities in Abu Dhabi are open to full foreign ownership. This move underscores their commitment to attracting foreign investment and fostering a dynamic economy.
Sharjah’s full foreign ownership policy offers a streamlined approach with no minimum capital requirements or additional fees for foreign investors. It even allows foreign company branches to operate without an agent.
The UAE’s new policy allowing full foreign ownership of onshore businesses is expected to significantly reshape its economic landscape. Here’s a breakdown of the anticipated impacts:
The minister of economy Abdulla Bin Al Marri, stated during the significant transition to 100% foreign ownership that the UAE has taken this major step to boost its economy; it has made this amendment as a part of making the UAE a global investment destination, which indeed it is now. He also added that this transition would give the UAE a separate identity in the global market, where there would be numerous investment opportunities. In fact, the UAE has taken foreign investments seriously, which has now turned out to be the trump card. The past records also depict that there is a boom in FDI in the UAE. During this competitive phase, foreign investors looking forward to investing in the UAE can take assistance from professional business setup service providers who are well trained to get businesses afloat in the market.
Suppose you are a resident of the US and you wish to invest in one of the major industrial sectors in the UAE, but you don’t have insights about the legal and social demography of the land. In such circumstances, PRO and business set up consultants like CDA can come in as your guardian angel to demystify the complexities of starting a business in Dubai, UAE. Getting assistance from professionals can help you concentrate on your core business operations. While the professionals will deal with the other paper work for you
Click here to know more about starting an industrial business in Dubai UAE.
The UAE’s new policy unlocks exciting possibilities for foreign businesses. But navigating the legalities and setting up a successful operation can be complex. Here’s how CDA can be your partner in this exciting journey:
By partnering with CDA, you can leverage their expertise to:
Click here to know more about our mainland company set up services in Dubai
As the UAE’s business landscape flourishes with foreign investment, CDA stands ready to be your trusted advisor on this exciting journey. Don’t hesitate to reach out and explore how they can empower you to thrive in the new era of 100% foreign ownership.
