UAE Mainland vs Free Zone: Key Differences
Thorough comparison of UAE company structures, focusing on ownership, licenses, and tax implications to help you decide.
The exact change
Since Federal Decree-Law No. 32 of 2021, which amended the UAE Commercial Companies Law, foreign nationals and foreign-owned entities can hold 100% ownership of most mainland company types.
Since Federal Decree-Law No. 26 of 2020, which amended the UAE Commercial Companies Law and took effect June 1, 2021, foreign nationals and foreign-owned entities can hold 100% ownership of most mainland company types.
Suggested change
Corrected the same Federal Decree-Law No. 32 of 2021 misattribution for the UAE ownership-requirement removal found elsewhere in the UAE directory, fixing it to Federal Decree-Law No. 26 of 2020, effective June 1, 2021. A separate imprecise section wrongly attributing the ownership change to a 2019 foreign investment law (which actually only created a narrow positive list of eligible activities) was flagged but not directly edited due to low visibility.
Why this is better
The 100%-ownership reform was wrongly attributed to Federal Decree-Law No. 32 of 2021; the actual amending law was Federal Decree-Law No. 26 of 2020, effective June 1, 2021.
More by Emir Baycan in Uae Dubai
- Correction Dubai Payment Gateways for E-Commerce: 2026 Overview
- Correction Opening a Business Bank Account in UAE: Best Banks
- Correction Understanding UAE Crypto Regulations and VARA Framework
- Correction UAE Business Laws: Compliance Guide for Foreign Firms