The Ministry of Economic of the United Arab Emirates started registering 100% ownership companies from 1st June 2021 for foreign investors for more than 1000 commercial and industrial business activities from manufacturing, trading, and service sectors in the non-free zone areas except thirteen negative lists.
The commercial activities in which full ownership was allowed include general trade, contracting, jewellery, gold, pearls, luxury watches, foods, and cars and trucks trading. Full ownership permitted in the metals and construction, flooring, building materials, foods, water production, and paints sectors in the industrial category. A kindergarten, an elementary and middle school, and a hotel also sought 100% ownership.
The negative list is
- Exploration, extraction and production of petroleum products.
- The investigation, security, military sectors and manufacture of weapons, explosives,
Equipment, devices and military clothing. - Banking, financing, payment systems and contract handling activities
- Insurance services
- Hajj and Umrah services, labourer, a domestic worker and staff recruitment services
- Water and electricity services
- Services connected to the fisheries field
- Postal, telecommunications and audiovisual services
- Land and air transport services
- Printing and publishing services
- Commercial agents services
- Medical, retail businesses such as pharmacies
- Poison centres, blood banks and quarantine facilities
The above procedures and guidelines apply to non-free zone areas across seven Emirates of the United Arab Emirates.
The status of existing business licenses, where 100% ownership of the activities is available, including an Emirati partner, remains unchanged as per the Memorandum of Association (MOA) and the partners’ decision. Dubai Economy clarified that a reduction of the percentage share of the Emirati partner from 51% or his /her withdrawal from the partnership is possible according to the legal procedures followed.
For Dubai Company Setup, Dubai Economic also explained that though it’s impossible to convert the legal form of a company from LLC (Limited Liability Company) to a Sole Proprietorship under a foreign name as per the existing law, the license transferred to a one-person company with limited liability. The 100% ownership does not apply to commercial agencies, as the Commercial Agencies Law regulates them. Branches of foreign companies do not require an Emirati agent.
Foreign Direct Investment (FDI) already established in all the seven emirates of the United Arab Emirates to accept applications from various investors.
Now foreign investors can register 100% ownership companies effective from 1st June 2021 for more than one thousand lists of commercial and industrial business activities.
As we are registered Business Setup consultants in UAE, please feel free to contact us for additional information and support