The UAE has emerged as one of the most business-friendly countries in the world. In recent years, the government has introduced a wide range of investment reforms designed to attract global entrepreneurs, foreign investors, and high-growth startups.
In this blog, we’ll explore the key reforms, why they matter, and what opportunities they open up for foreign entrepreneurs looking to launch or expand in the UAE.
1. Full Foreign Ownership of Mainland Companies
What Changed:
Before 2021, foreign investors could only own 49% of a business registered on the UAE mainland. The remaining 51% had to be owned by a local Emirati sponsor.
What’s New:
Under the new Commercial Companies Law, the UAE now allows 100% foreign ownership in most sectors without the need for a local partner or sponsor.
Sectors Included:
The list of activities open to full foreign ownership includes:
- Technology & software development
- Manufacturing
- Retail & e-commerce
- Renewable energy
- Logistics & supply chain
- Advertising & media
- Agriculture
- Hospitality
Note: A few strategic sectors (e.g., defense, oil & gas, utilities) may still require local partnership.
What This Means for Entrepreneurs:
- Full control over your company structure and decisions
- More flexibility in profit-sharing
- Greater protection of intellectual property and business assets
2. Long-Term Residency Through the Golden Visa
The Golden Visa program offers 5- or 10-year residency to foreign investors, entrepreneurs, and professionals — without the need for a local sponsor.
Who Is Eligible?
- Entrepreneurs with a successful business (min. capital often AED 500,000 or higher)
- Founders of startups approved by recognized business incubators
- Investors in property, public investments, or private enterprises
- Highly skilled professionals and researchers in key fields
Key Benefits:
- Long-term stability for you and your family
- No need to renew visas annually
- Ability to sponsor dependents, business partners, and domestic workers
The program is part of the UAE’s effort to retain global talent and encourage long-term economic participation.
3. Easier Business Setup and Licensing
The UAE has digitized and streamlined the process of starting a business.
Recent Improvements:
- Online business registration (available in most Emirates)
- Instant trade licenses in free zones and some mainland areas
- Reduced documentation requirements
- “Start in 1 day” initiatives in Emirates like Dubai and Abu Dhabi
Free Zones vs Mainland:
- Free Zones: 100% ownership, no import/export duties, offices in dedicated zones
- Mainland: Access to the local UAE market, broader scope of operations
Many entrepreneurs start in free zones and expand to mainland operations later.
4. Strategic Economic Sectors Open for Investment
The UAE is moving away from oil dependency and is actively diversifying its economy. This opens new opportunities for foreign entrepreneurs in sectors like:
- Fintech & Digital Banking
- Green Energy (solar, hydrogen, waste-to-energy)
- Healthtech & MedTech
- Artificial Intelligence & Big Data
- Smart Mobility & EVs
- Tourism & Cultural Projects
- E-learning & EduTech
The government has also launched incentive programs, including tax holidays, incubator funding, and accelerator programs.
5. Business-Friendly Tax & Legal Framework
Taxation:
- 0% personal income tax
- 0% corporate tax for profits below AED 375,000
- 9% corporate tax (from June 2023) for larger companies
- No capital gains tax in most cases
- 0% import/export duties in free zones
Legal Protection:
- Strong laws protecting foreign investment
- Arbitration centers and commercial courts to resolve disputes
- IP protection under WTO-compliant regulations
6. Strategic Location & Global Access
The UAE is ideally positioned between Europe, Asia, and Africa — making it a global logistics hub. Key benefits include:
- World-class infrastructure (airports, ports, roads)
- Direct access to 2 billion+ consumers within a 4-hour flight
- Regional headquarters of many multinationals
Final Thoughts: A New Era of Opportunity
The UAE is no longer just a regional business hub — it is positioning itself as a global center for innovation, entrepreneurship, and investment.
With:
- 100% foreign ownership in key sectors
- Long-term visa options
- Easy company setup
- Low taxes and legal protections
…the environment has never been more welcoming for international entrepreneurs.
Whether you’re launching a new startup, relocating your existing business, or investing in high-growth sectors, the UAE offers the tools and policies to help you succeed.
