UAE Mainland Business Complete Guide
Understand the 2021 ownership reforms, the three types of mainland licenses, business activity categories, and the complete DED application process — explained clearly for entrepreneurs.
The 2021 Ownership Reform Explained
For decades, UAE commercial companies law required that at least 51% of any mainland company be owned by a UAE national. This meant every foreign entrepreneur needed a local Emirati sponsor who held majority ownership — even if they were not involved in the business.
In June 2021, the UAE government passed a sweeping amendment to the Commercial Companies Law, abolishing the 51% local ownership requirement for most business activities. Foreign investors can now own 100% of their mainland company in the vast majority of sectors.
The change covers commercial, professional, and most industrial activities. A small list of sectors remains restricted — primarily those linked to national security, oil & gas, and certain utilities. Our advisors confirm the exact status for your activity upfront.
- 51% Emirati ownership requirement removedFor most commercial & professional activities
- Foreign nationals can own 100%No local partner required in most sectors
- Local Service Agent still required in some casesFor certain professional activities
- Restricted activities list is narrowDefence, security, some utilities remain restricted
Three Types of Mainland License
Commercial License
For buying and selling goods, general trading, import/export, and retail operations.
- General trading
- Retail shops
- Import & export
- E-commerce
- Car dealerships
Professional License
For service-based businesses that rely on personal skills, expertise, or qualifications.
- Consulting & advisory
- Legal services
- Healthcare
- Architecture & engineering
- IT services
Industrial License
For manufacturing, production, and processing operations within the UAE.
- Food production
- Garment manufacturing
- Furniture making
- Chemical production
- Electronics assembly
1,000+ Approved Business Activities
The DED classifies activities into sectors. Your license can include up to 10 activities — our advisors help you select the most strategic combination.
Mainland Guide FAQs
What changed with the 2021 UAE ownership law?
The Commercial Companies Law amendment (2021) eliminated the requirement for Emirati partners to hold 51% in most business sectors. Foreign investors can now own 100% of mainland companies in hundreds of commercial and professional activities. A small list of sectors remains subject to Emirati ownership requirements.
What is the Department of Economic Development (DED)?
The DED is the government body that issues and regulates mainland trade licenses in Dubai. Each emirate has its own equivalent authority. Arab First liaises directly with the DED on your behalf — you don't need to visit any government offices.
How many business activities can I list on my mainland license?
You can typically list up to 10 business activities on a single mainland license. Activities must be within the same category (commercial, professional, or industrial). Each activity may carry a small additional fee. Our advisors help you select the most useful combination.
Is a physical office mandatory for a mainland license?
Yes. All mainland companies must have a physical office with a valid Ejari-registered lease. The minimum office size is typically 200 sq ft. We can help you find a compliant shared workspace at an affordable rate.
Can I convert a freezone license to a mainland license?
You cannot directly convert a freezone license. You would need to set up a new mainland company. Many businesses choose to operate both a freezone and mainland entity simultaneously for maximum market coverage — we regularly structure dual-entity setups for clients.
What is a Local Service Agent (LSA) and do I still need one?
An LSA was previously required for sole establishments owned by foreigners in professional services. Post-2021 reforms have reduced (but not eliminated) this requirement in some sectors. Where an LSA is required, Arab First can provide a compliant local service agent arrangement. Our advisors will confirm if your activity requires one.
Ready for Your Mainland License?
Our PRO team handles the entire DED application process — from name reservation to license collection.