Yes, foreign nationals are allowed to fully own and operate businesses in the UAE. This is part of the UAE's progressive economic policies designed to attract global investment and talent. The most recent changes to the country's business regulations have made it easier for foreign entrepreneurs to establish and operate businesses with full ownership rights. Here’s a detailed explanation:

Key Points:

1. 100% Foreign Ownership:

   • As of June 1, 2021, the UAE has allowed 100% foreign ownership of businesses in most sectors without the need for a local Emirati sponsor. This means that foreign investors can now fully own companies in mainland UAE, which was previously only possible in Free Zones.
     
     

2. Types of Businesses Allowed:

   • The new law applies to various types of businesses, including Limited Liability Companies (LLCs), and covers most industries, including trading, manufacturing, and services. However, certain strategic sectors such as oil and gas, and military-related businesses may still have restrictions or require a certain level of Emirati ownership.
     
     

3. Free Zones:

   • Even before the introduction of full ownership rights in mainland UAE, foreign nationals could establish businesses with 100% ownership in one of the UAE's numerous Free Zones. Each Free Zone has its own regulations, but they all allow full foreign ownership and offer other benefits such as tax exemptions and full repatriation of profits.
     
     

4. Licensing and Regulatory Requirements:

   • Despite the ability to fully own businesses, foreign nationals must comply with UAE's business licensing requirements, which vary depending on the industry and location of the business. This includes obtaining the necessary trade licenses and adhering to the regulatory frameworks set by local authorities.
     
     

5. Impact on Foreign Investment:

   • The allowance for 100% foreign ownership has significantly boosted foreign direct investment (FDI) in the UAE. The country has become an even more attractive destination for international entrepreneurs and companies looking to establish a presence in the Middle East.
     
     

Supporting Data:

• According to the UAE Ministry of Economy, the country has seen a notable increase in FDI following the introduction of the full ownership policy, with sectors such as technology, healthcare, and real estate benefiting the most.
  
  

• Free Zones continue to play a significant role, offering foreign investors additional incentives and a streamlined process for setting up businesses.
  
  

Conclusion:

The UAE's move to allow 100% foreign ownership of businesses in the mainland has positioned the country as a leading global hub for business and investment. This change, combined with the benefits of Free Zones, provides foreign nationals with numerous opportunities to fully own and operate businesses across a wide range of industries in the UAE.

Sources:

• UAE Ministry of Economy

• Dubai Chamber of Commerce