Is 51% Emirati Ownership Still Required? The Rule Explained
For most activities, no. Since early 2021, under Federal Decree-Law No. 26 of 2020 (now consolidated in Federal Decree-Law No. 32 of 2021 on Commercial Companies), foreign investors can own 100% of UAE mainland companies, and branches of foreign companies no longer need a UAE national service agent. Activities of strategic impact can still carry ownership conditions, and some activities, such as banking, insurance, telecoms, defence and commercial agencies, cannot be fully foreign-owned.
What changed
| Before 2021 | Since 2021 |
|---|---|
| Most mainland companies needed a UAE national shareholder with at least 51% | Full foreign ownership allowed for most activities |
| Branches of foreign companies needed a UAE national service agent | Service agent requirement removed |
| One general rule | The Cabinet sets conditions for strategic-impact activities; emirates license activities |
Where ownership limits remain
Activities with "strategic impact" are set by the Cabinet on a committee's recommendation and can carry ownership conditions. Activities that cannot be fully foreign-owned include security, defence and military; telecommunications; banking, exchange, financing and insurance; commercial agencies; and some others listed by the government. Check your exact activity with the licensing authority.
What it means for Emirati founders
The value of being an Emirati founder today is access: national funding such as Khalifa Fund's First-time Founders Loan, Dubai SME's licences and 10% procurement share, and programmes built for Emirati founders. See funding for Emirati founders.
Frequently asked questions
01Do I need an Emirati partner to open a company on the UAE mainland?
Not for most activities since 2021. Strategic-impact and restricted activities, such as banking, insurance and telecoms, are the exceptions.
02Which law removed the 51% rule?
Federal Decree-Law No. 26 of 2020, later consolidated into Federal Decree-Law No. 32 of 2021 on Commercial Companies.
Sources
- Full foreign ownership of commercial companies. UAE Government portal.
This page explains UAE Emiratisation rules for general information. It is not legal advice. Rules change, so confirm against the official MoHRE, Nafis or Central Bank source linked above before acting. StrongYes is an independent publication and is not affiliated with MoHRE, Nafis, the Emirati Talent Competitiveness Council or any UAE government body. Full disclaimer.