UAE Amends Commercial Companies Law to Permit Full Foreign Business Ownership

The United Arab Emirates has amended its Commercial Companies Law to remove foreign equity restrictions, allowing overseas investors to own 100 percent of onshore businesses. The reform scraps the historical 49 percent ownership ceiling across 13 economic sectors, including renewable energy, transport, and e-commerce. Economy Minister Abdulla bin Touq al-Marri stated the measure is intended to boost national competitiveness and facilitate commerce.

Published October 28, 2026 Source: The Arab Weekly

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Issuing authority: UAE Ministry of Economy
Jurisdiction: United Arab Emirates
Effective date: June 1, 2021
Stage: Amendment
Official document: Commercial Companies Law
Official source: news.google.com

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According to The Arab Weekly, the United Arab Emirates announced the lifting of non-local ownership limits on domestic businesses, permitting full foreign control of commercial ventures starting June 1. The measure overhauls the nation's Commercial Companies Law and eliminates a long-standing statutory rule that restricted foreign equity participation to 49 percent outside free zones.

UAE Economy Minister Abdulla bin Touq al-Marri stated that the amended Commercial Companies Law aims to reinforce the country's competitive edge and forms part of government measures to streamline business setup and operations. Al-Marri noted that the changes will elevate the UAE's positioning as an investment hub for entrepreneurs, capital, and foreign talents.

The regulatory reform opens 13 major economic sectors to unrestricted foreign capital, encompassing renewable energy, transport, agriculture, and e-commerce. Historically, foreign investors requiring 100 percent ownership relied on designated free trade zones established across individual emirates, such as Dubai.

The UAE represents the second-largest economy in the Arab world behind Saudi Arabia and ranks 16th globally on the World Bank's ease of doing business index, the report noted. While Abu Dhabi holds the vast majority of oil reserves, Dubai generates 95 percent of its revenue outside the oil sector. According to data from the United Nations Conference on Trade and Development (UNCTAD), the UAE attracted roughly $13.8 billion in foreign direct investment in 2019.