Yes. Foreigners can absolutely set up a business in Dubai.
But the rules about foreign ownership in Dubai have changed over the years, and many people still work with outdated information.
Here’s what you actually need to know about starting a business in Dubai as a foreigner.
Foreign Ownership Business Dubai Rules Changed in 2021
Before 2021, foreigners needed a UAE national partner to own 51% of mainland companies. That rule is gone.
Now, expats can own 100% of their business in most cases. This applies to both free zone companies and mainland companies.
The change made Dubai business ownership rules much simpler for international entrepreneurs. You don’t need to find a local partner or give up half your company anymore.
Some business activities still have restrictions. These include oil and gas, utilities, and certain strategic sectors. But for most regular businesses like trading, consulting, e-commerce, or services, full foreign ownership is allowed.
Expat Business Setup Dubai Through Free Zones
Free zones have always allowed 100% foreign ownership, even before the 2021 law change.
Places like DMCC, IFZA, Ajman Free Zone, and RAKEZ were built specifically for international businesses.
When you start a business in Dubai as a foreigner through a free zone, you get full ownership, zero corporate tax on profits, and no currency restrictions. You can bring money in and take profits out without issues.
Free zones also make bank account opening simpler for foreigners since banks are familiar with these structures.
The trade-off? Free zone companies can’t do business directly with UAE consumers without appointing a local distributor. If your customers are outside the UAE or you’re doing B2B work, this doesn’t matter.
Start a Business in Dubai as a Foreigner with Mainland License
Mainland companies now offer 100% foreign ownership too, which changed everything.
Dubai mainland and Abu Dhabi mainland companies can operate anywhere in the UAE. You can sell to local customers, bid on government contracts, and open retail locations.
For foreigners targeting the UAE market directly, mainland setup makes more sense than free zones. You get market access without restrictions.
Some mainland activities still require a local service agent. This person doesn’t own shares in your company but provides a registered service. The cost is usually a fixed annual fee.
As experienced business owners know, choosing between free zone and mainland depends on your business model and customer location.
Dubai Business Ownership Rules for Different Nationalities
Good news. Dubai doesn’t discriminate based on nationality when it comes to business setup.
Whether you’re from the US, UK, India, Pakistan, Philippines, Australia, or anywhere else, the rules are the same. All foreigners can own 100% of their companies.
You don’t need special connections or UAE residency before starting. You can begin the business setup process from outside the country and get your investor visa afterward.
The only documents you need are your passport, proof of address, and some basic paperwork. If you’re using documents from your home country, they’ll need attestation and legalization.
Expat Business Setup Dubai Costs for Foreigners
Costs vary based on your choices, but foreigners pay the same fees as anyone else.
A basic free zone license starts around AED 15,000 to AED 20,000 for the license itself. Add visa costs, office fees, and other expenses, and you’re looking at AED 25,000 to AED 35,000 total for the first year.
Mainland setup costs slightly more because of additional approvals and requirements. Budget around AED 30,000 to AED 45,000 for everything.
Offshore companies are cheaper if you don’t need UAE residency. These run around AED 10,000 to AED 15,000 since there’s no office requirement or visa processing.
Many people underestimate the full cost of business setup. Check out what business setup in Dubai actually involves to understand all the expenses.
Can Foreigners Get Business Visas in Dubai?
Absolutely. Your business license lets you sponsor yourself for a residency visa.
The investor visa process includes medical screening, Emirates ID application, and visa stamping. Once approved, you can live and work in the UAE for two or three years depending on your license type.
You can also sponsor employees and family members. Each requires separate applications and fees, but the process is standard for all foreigners.
Some entrepreneurs qualify for Golden Visas, which give five or ten-year residency. Requirements include specific investment amounts or special approvals.
Start Your Business in Dubai the Right Way
Foreign ownership in Dubai is now straightforward. The laws favor international entrepreneurs, and the process is faster than most countries.
Smart Zone has helped thousands of foreigners set up businesses in Dubai since 2010. We handle everything from license selection to bank account opening to visa processing.
Ready to start your expat business setup in Dubai?
Book a free consultation with our team and get your questions answered by people who’ve done this thousands of times.
