The UAE offers a thriving business ecosystem, with multiple setup options including freezones and mainland entities. Backed by recent reforms such as 100% foreign ownership in many sectors, mainland businesses have become an increasingly attractive option for entrepreneurs and corporations alike. This article explores the key features and benefits of establishing a mainland business in the UAE.
- Freedom to Operate Anywhere in the UAE
One of the most significant advantages of a mainland license is the ability to conduct business across the UAE without limitations. Unlike freezone companies, which are typically restricted to operating within their zone or internationally (unless working through a local distributor), mainland companies can:
- Offer products or services directly to the UAE market
- Work with government entities and large public sector contracts
- Open branches or offices across any Emirate
This unrestricted geographic reach makes mainland businesses ideal for companies targeting local clients or government contracts.
- 100% Foreign Ownership in Many Sectors
Previously, mainland businesses required a local Emirati sponsor with 51% ownership. However, with the UAE’s recent legal reforms, many business activities now allow for 100% foreign ownership without the need for a local partner. This update has made mainland setup far more appealing to foreign investors.
Eligible sectors include:
- E-commerce
- Consultancy
- Commercial and trading services
- Technology and software development
(Industries such as oil, gas, and defense may still require local participation.)
- Wider Business Scope and Activity Options
Mainland businesses enjoy a broader list of permitted business activities compared to freezones. Whether you’re involved in:
- Retail and wholesale trading
- Real estate brokerage
- Construction and contracting
- Food and beverage
- Professional services (legal, accounting, marketing, etc.)
you’ll find more flexibility with a Department of Economic Development (DED) license. You can even combine multiple business activities under one license, enhancing operational efficiency.
- No Currency or Capital Repatriation Restrictions
Mainland companies benefit from zero restrictions on currency exchange or capital repatriation, meaning you can transfer your profits and capital back to your home country freely. Additionally, the corporate tax rate is competitively low, with 9% applicable only to net profits exceeding AED 375,000—making it tax-friendly for small and medium-sized enterprises.
Wrapping Up
Setting up a mainland business in the UAE offers unmatched flexibility, broader market access, and significant growth potential. With reforms supporting 100% foreign ownership and the ability to operate anywhere in the country, it’s an ideal choice for entrepreneurs looking to tap into both local and international markets. Whether you’re launching a consultancy, opening a retail outlet, or expanding a multinational operation, a mainland license equips your business for long-term success in the UAE’s dynamic economy.
