Foreign investments in the UAE can be made in either in Mainland UAE or in one of the 45+ free zones strategically located across the country. A Mainland UAE setup allows access to the local market but typically limits foreign ownership to 49% (with 51% held by a GCC national). However, the recent Foreign Direct Investment Law (‘FDI Law’) permits 100% foreign ownership in specific sectors, subject to certain conditions.
Free zones, on the other hand, offer 100% foreign ownership with unique regulations, incentives, and costs. Some free zones focus on sector-specific investments, while others provide VAT exemptions.