Foreign Investment in the UAE: Setup and Licensing
Mainland, free-zone and offshore routes for foreign investors in the Emirates, and what the 2021 reforms changed.
Three routes into the UAE
The firm covers UAE matters in cooperation with an announced partner office in the United Arab Emirates. That partner office is not a branch owned by the firm, and the firm does not itself hold a UAE law practice license; local licensing and representation are assessed for each matter in the Emirates. The UAE offers three routes: mainland incorporation through the economic department of the chosen emirate, free-zone incorporation (including financial free zones such as the DIFC and ADGM), and offshore registries. Since the 2021 amendments to the Commercial Companies Law, most mainland activities allow full foreign ownership.
Choosing between mainland and free zone
Under Federal Decree-Law No. 32 of 2021 the requirements differ by form and jurisdiction. Common forms include the limited liability company, private and public joint-stock companies, branches of foreign companies, and free-zone entities. The choice is made against how the business will actually operate - the target market, the visa and office needs - and not from a template.
Licensing and how we work
A trade license alone does not answer sector or operational permit questions. We prepare the investor's file and sequence the license type, approvals and registrations with our partner office in the Emirates before a launch date is committed. For the incorporation detail see Company Formation in the UAE; for the wider practice see General Commercial & Corporate; to scope a project, contact our team.
MENA coordination
The firm was founded in Kuwait in 1986 and has a branch in Cairo. It covers MENA matters in cooperation with partner offices in Saudi Arabia, the UAE, Qatar, Bahrain and Oman, and partner offices in Turkey and the United States. Those partner offices are not branches owned by the firm; local licensing and advice are assessed in the relevant jurisdiction.
This page is general information, not advice for a particular entity or transaction.
Frequently asked questions
Can a foreign investor own a UAE company outright?
Since the 2021 amendments to the Commercial Companies Law, most mainland activities allow full foreign ownership. Whether a particular activity does is checked before filing.
What is the difference between mainland and free-zone setup in the UAE?
Mainland incorporation runs through the economic department of the chosen emirate; free-zone incorporation, including the DIFC and ADGM, follows the rules of the relevant zone. The right route depends on the activity, the visa and office needs and the target market.
Who handles UAE investment matters at the firm?
UAE matters are handled in cooperation with the firm's announced partner office in the Emirates. The firm does not itself hold a UAE law practice license, and local licensing and representation are assessed for each matter.
Other markets
Company Formation in the UAEForeign Investment in Egypt: Setup and LicensingForeign Investment in Saudi Arabia: Setup and LicensingForeign Investment in Qatar: Setup and LicensingForeign Investment in Oman: Setup and LicensingForeign Investment in Bahrain: Setup and Licensing