Can foreigners own a company outright in the UAE?

Yes, foreigners can own a company outright in the UAE. However, the ownership regulations and restrictions vary depending on the emirate and the location of the company. Here are some key points to consider:

1. Mainland Companies: In the mainland areas of the UAE, which are outside the designated free zones, there is a requirement for a local partner or sponsor who is a UAE national or a UAE-owned company. The local partner/sponsor must hold a minimum of 51% ownership in the company, while the foreign investor(s) can hold up to 49% ownership. However, profit-sharing and control can be negotiated through legal agreements, such as a Memorandum of Understanding (MOU) or a Local Service Agent (LSA) agreement.

2. Free Zone Companies: Free zones in the UAE allow 100% foreign ownership of companies. These designated economic zones offer various incentives, including simplified company setup processes, tax advantages, and no requirement for a local partner or sponsor. Foreign investors can establish a company outright and retain full ownership without the need for a UAE national as a partner.

3. Certain Business Activities: In some sectors, such as oil and gas exploration, utilities, and defense, ownership restrictions may apply, and the government may require a certain level of Emirati ownership or participation.

4. Professional Services: In certain professional sectors, such as legal, accounting, engineering, and consulting, foreign investors can establish companies with 100% ownership under specific licensing regulations.

It's important to note that while foreigners can own a company outright in the UAE, there may still be requirements for local agents, sponsors, or service agents depending on the business activity and the location. These requirements may differ based on the emirate and the specific regulations in place.

To navigate the ownership requirements and legal frameworks, it is advisable to consult with a local business advisor, legal professional, or company formation specialist who can provide accurate and up-to-date information based on your specific business objectives and circumstances.