100% Foreign Ownership on the Dubai Mainland: The Activities That Still Need a Local Partner

Most businesses on the Dubai mainland can now be fully owned by foreign investors, without a UAE national partner. That is a major change from the older rule that required a local sponsor to hold the majority of shares. A short list of activities still requires a local partner. Checking that list before choosing activities avoids a costly restructure later.

Invest in Dubai, the business portal of the Dubai Department of Economy and Tourism, publishes the restrictions list in four groups. This guide walks through each group with examples from that list, checked in September 2026. It then explains what to do if your planned activity is restricted. It also covers the extra approvals some sectors need regardless of ownership.

The general rule for mainland companies

Invest in Dubai states that Dubai companies under 100 per cent foreign ownership can undertake the vast majority of activities. For those activities, a foreign individual or company can hold every share in a mainland LLC. No UAE national shareholder is needed in that case.

The exceptions are set out on Invest in Dubai's foreign ownership restrictions list. A company wanting to carry out a listed activity must work with a local partner. The list is organised into four groups, which the sections below cover one group at a time.

Security, defence and military activities

The first group covers security and defence activities and activities of a military nature. It includes both manufacturing and trading military weapons, ammunition, vehicles and related equipment. Military garment manufacturing and the tailoring of military uniforms also appear on the published list.

The group extends to military consultancy, representation of defence and security companies, and defence and surveillance systems development. Some entries are less obvious, such as radar equipment manufacturing and toughened and laminated flat glass manufacturing. Check the full published list rather than relying on the group name alone.

Telecommunications, banking and insurance

The second group is telecommunications, covering wired, wireless and satellite telecommunications services and satellite ground stations. Radio broadcasting stations and television and radio broadcasting through encrypted or open channels are included. Cable distribution of data and television signals is listed as well.

The third group covers banks, exchange, financing, insurance and bank note or coin production. It lists commercial, Islamic, investment and savings banks, digital wallets for electronic payments and hawala brokers. Consumer lending, real estate financing, e-finance and insurance lines such as life and fire insurance appear as well.

The other restricted categories

The fourth group, labelled other categories, is short but important for some founders. It includes commercial agencies, which cover the representation of foreign brands and principals in the UAE market. It also includes the organising of Hajj and Umrah trips.

Holy Quran recitation institutes are on the list, along with fish catching, natural pearl catching and marine animal catching. Founders planning a brand distribution model should check the commercial agency entry especially carefully. A distribution agreement is not always the same thing as a registered commercial agency under UAE law.

What to do if your activity is restricted

Invest in Dubai states plainly that a company performing listed activities must work with a local partner. The partnership terms, including ownership and profit sharing, should be documented carefully in the memorandum of association. Take legal advice before signing any shareholder arrangement.

Sometimes the business can be structured around an unrestricted activity instead, with the restricted element left out. Check each activity code at the initial approval stage, before booking premises or hiring. Some sectors, such as banking and telecommunications, also need approval from their federal regulator whatever the ownership.

Main Takeaways

Most Dubai mainland activities allow 100 per cent foreign ownership, with no UAE national shareholder required. Invest in Dubai lists four restricted activity groups: security and defence, telecommunications, banking and insurance, and other categories such as commercial agencies. Restricted activities still need a local partner to operate. Check your activity codes at the initial approval stage, before premises or hiring.

Choosing activities with ownership in mind

For most founders, full foreign ownership on the Dubai mainland is now simply available as a starting point. The restrictions list matters mainly for regulated and sensitive sectors, plus a few specific traditional trades. Checking it against your plans takes only a few minutes. Missing it can mean an expensive restructure after the licence has already been issued.

List every activity you plan to carry out, then compare each one carefully with Invest in Dubai's restrictions list. If one is restricted, take legal advice on the partner arrangement or consider an alternative, unrestricted activity. MSM handles LLC formation and helps with choosing your business activity. Our guide to professional and commercial licences covers the next structural decision you will face.