GDP 2025 5.4% in 2026 (projected) as per CBUAE report
ownership in most sectors across the mainland and freezones
in international trade and #22 in international investment
freezones and mainland to establish your company
The UAE is focused on economic diversification, moving beyond traditional oil reliance, and establishing itself as a pivotal global business hub.
Yes, 100% foreign ownership is permitted in the UAE following a landmark reform effective June 1, 2021. This removed the requirement for a local sponsor in most sectors, allowing foreign investors to fully own mainland companies. Free Zones have always offered 100% ownership. While the reform covers most activities, certain strategic sectors may still require a local partner or be subject to specific conditions.
The registration process in the UAE follows a structured sequence, with timelines depending on the emirate, business activity, and whether the setup is Mainland or Free Zone.
Steps:
Timelines:
Note: Delays may occur due to incomplete/inaccurate documents or pending external approvals.
The three primary jurisdictions for setting up a corporate entity in the UAE are Mainland, Free Zones and offshore.
| Feature | Mainland | Free Trade Zones (FZs) | Offshore |
|---|---|---|---|
| Regulation | Regulated by the respective emirate's Department of Economic Development (DED). | Governed by their own regulatory authority and specific rules of the Free Zone. | An offshore company in the UAE is a legal entity established in a designated offshore jurisdiction—such as RAK ICC or JAFZA Offshore—for conducting business outside the UAE. Unlike mainland and free zone companies, they do not have office inside UAE and do not offer UAE residence visas. |
| Foreign Ownership | 100% foreign ownership is permitted in most mainland sectors (over 1,000), eliminating the 51% local ownership requirement (except some strategically sensitive sectors) | 100% foreign ownership is a standard feature and major incentive. | 100% foreign ownership is a standard feature |
| Office Requirement | Physical office space in the UAE mainland is mandatory | Physical office space is usually required, but the type can vary: Flexi-desk / Smart desk: A shared, minimal-space workstation (very common and accepted for many free zones); Shared office / Co-working space; Dedicated private office; and Warehouse / industrial units (for industrial or logistics activities) | Cannot lease office space |
| Operations Scope | Entities can operate across the entire country without jurisdictional restrictions. | Operations are generally restricted to within the free zone or internationally. But cannot directly trade in the UAE mainland without appointing a local distributor or establishing a mainland branch | The offshore entities cannot operate within the UAE market |
| Corporate Tax (CT) | Standard CT rates apply (9% on income exceeding AED 375,000). | Qualifying Free Zone Persons (QFZPs) benefit from a 0% CT rate on Qualifying Income. | Generally 0% (but cannot earn UAE-sourced income) |
| Benefits | Allows direct trade with the UAE market and participation in government contracts | Often offers tax incentives, simplified customs procedures, and sector-focused ecosystems | They are primarily used for international business, asset holding, and investment structuring, offering tax efficiency, confidentiality, and simplified compliance. |









Nexdigm is a global, independent professional services organization that helps businesses set up, operate, and expand in the United Arab Emirates (UAE); one of the world’s most dynamic, investor-friendly markets. With our multi-functional expertise and digitally driven Business and Professional services, we deliver customized solutions across UAE company formation, free zone and mainland business setup, corporate tax advisory, finance and accounting, payroll management, and regulatory compliance.
Our hands-on approach, combined with strategic insight, allows Nexdigm to help businesses navigate the complexities of doing business in the UAE market and achieve sustainable growth. We serve multinationals, regional entities, and family businesses across more than 50 countries with direct operations in the USA, Poland, the UAE, and India.
At Nexdigm, our clients’ success is at the heart of everything we do. We believe in working side by side with them, going beyond traditional advice to help turn ideas into results. By collaborating closely at every step, we drive innovation, boost efficiency, and support lasting growth within the UAE’s dynamic business landscape.
UAE Offices: DIFC | Dubai Mainland | Abu Dhabi