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Fri, Dec 12, 2025 | Jumada al-Thani 21, 1447 | Fajr 05:32 | DXB 
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UAE clears 100% ownership rules
Nation issues list of all 122 activities under 100% foreign ownership regime
The UAE has released the full list of 122 categories for 100 per cent ownership in the mainland under the Foreign Direct Investment (FDI) Law.
Cabinet Resolution No.(16) of 2020 determines the 'Positive List' of sectors and economic activities in which foreign direct investment is permissible and the percentage of ownership is 100 per cent.
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In 2019, the UAE Cabinet had approved a Positive List of activities under which 100 per cent foreign ownership in companies outside free zones was permitted. However, this remained subject to certain criteria being satisfied.
The list covers key sectors - agriculture; manufacturing; transport and storage; hospitality and food services; information and communications; science and technology; healthcare; education; art and entertainment; and construction.
Cabinet Resolution No.(16) of 2020 also sets condition that companies need to invest in new technologies, contribute to research and development and meet the requirements of UAE licensing entities.
The Positive List includes a number of interesting activities such as manufacturing of toys, sports goods, electrical equipment, consultancy services, advertising, photographic activities, construction of buildings, translation services, primary, secondary and higher education, hotel and restaurant management, hospitals and music bands, among others.
"Manufacturing is the backbone of any country but it has not taken off so much here due to the nature of capital intensive projects and legal ownership restrictions. The investor is a minority shareholder legally always which is a major limitation, therefore, operating a manufacturing set up is very difficult," said Raju Menon, chairman of Kreston Menon.
He noted that operating a manufacturing unit in the free zones is the options available to hold 100 per cent but operating costs in free zones now-a-days are too expensive.
"Holding 100 per cent manufacturing operations in mainland is very attractive. However, capital adequacy is a precondition which any serious industrialist would adhere to. In my opinion manufacturing is the sector more benefitted. Apart from that, Private Joint Stock Company (PSC) can be the set-up vehicle. It is fully protected with the shield of limited liability," said Menon.
Anurag Chaturvedi, managing partner at Chartered House Tax Consultancy, said the full ownership law will have a positive multiplier effect in form of creation of jobs, an increase in productive capacity, resulting in less need to import because goods are produced in the domestic economy.
"FDI will compensate for the decrease in domestic investment as a result of Covid-19, and can help 'kick-start' the process of economic development," said Chaturvedi.
He said the allowing full-ownership to PJSC and a single person company is one of the unique preposition to boost the investment in service sector with minimum capital as per the current legislation in legal, audit and accounting amongst others. The minimum investment has been set at Dh2 million for manufacturing; Dh3 million for manufacturing of sports and toy industries; Dh20 million for manufacturing activities of automobiles, metal ad medical equipment; and Dh100 million for healthcare.
- waheedabbas@khaleejtimes.com
Agriculture sector
ISIC4
Business activity
Minimum Capital
Conditions and controls for foreign direct investment
1
01111
Grain cultivation (wheat, corn, barley, etc.)
- use of modern technology
- achievement of high added value
- contribution in the research and development field
- satisfaction of the requirements of the licensing entities in the state
2
01112
Cultivation of bean crops
3
0113
Cultivation of vegetables, melons, roots and tubers
4
0114
Cultivation of sugar cane
5
0116
Cultivation of fiber crops
6
0119001
Flowers and Flower Buds Cultivation
7
0121
Growing of grapes
8
0123001
Fruits and Citrus Cultivation
9
0124
Growing of pome fruits and stone fruits
10
0125
Growing of other tree and bush fruits and nuts
11
0126
Growing of oleaginous fruits
12
0127
Growing of beverage crops
13
01289
Growing of aromatic, drug and pharmaceutical crops
14
0161
Support activities for crop production
10
15
0162
Support activities for animal production
16
0163
Post-harvest crop activities
17
0164
Seed processing for propagation
18
0210
Silviculture and other forestry activities
19
0240
Support services to forestry
Manufacturing sector
ISIC4
Business activity
Minimum Capital
Conditions and controls for foreign direct investment
20
10
Manufacture of food products (except):
1071- Manufacture of bakery products
105 - Manufacture of diary products
108 - Manufacture of prepared animal feeds
15
- use of modern technology
- achievement of high added value
- contribution in the research and development field
- satisfaction of the requirements of the licensing entities in the state
21
10
Manufacture of beverages (except):
1101 -Distilling, rectifying and blending of spirits
1102 -Manufacture of wines
1103- Manufacture of malt liquors and malt
15
22
14
Manufacture of wearing apparel (except):
14109 - Tailoring and Sewing of Wearing Apparel
1410122 - Military Garments Manufacturing
15
23
15
Manufacture of leather and related products
15
24
16
Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials
15
25
2012002
Straight or Complex Fertilizers Manufacturing
15
26
2013
Manufacture of plastics and synthetic rubber in primary forms
15
27
2021
Manufacture of pesticides and other agrochemical products
15
28
2022
Manufacture of paints, varnishes and similar coatings, printing ink and mastics
15
29
2023
Manufacture of soap and detergents, cleaning and polishing preparations, perfumes and toilet preparations
15
30
2029006
Glues and Prepared Adhesives Manufacturing
15
31
2029008
Manufacture of dyestuffs and pigments
15
32
2029009
Textiles and Leather Finishing Used Chemical Materials Manufacturing
15
33
2029013
Manufacture of photographic plates, films
15
34
2029019
Gelatine and Its Derivatives Manufacturing
15
- use of modern technology
- achievement of high added value
- contribution in the research and development field
- satisfaction of the requirements of the licensing entities in the state
35
2029021
Essential Oils Manufacturing (Essence)
15
36
2029022
Extracted Natural Aromatic Products Manufacturing
15
37
2029023
Aromatic Distilled Waters Manufacturing
15
38
2029024
Matches Manufacturing
15
39
2029025
Welding Powders and Pastes Manufacturing
15
40
2030
Manufacture of man-made fibres
15
41
2100
Manufacture of pharmaceuticals, medicinal chemical and botanical products
15
42
22
Manufacture of rubber and plastics products
15
43
23
Manufacture of other non-metallic mineral products
15
44
24
Manufacture of basic metals (except):
242 Manufacture of basic precious and other non-ferrous metals
2432 Casting of non-ferrous metals
20
45
25
Manufacture of fabricated metal products, except machinery and equipment (except)
2529 Manufacture of weapons and ammunition
15
46
26
Manufacture of computer, electronic and optical products
15
47
27
Manufacture of electrical equipment
20
48
28
Manufacture of machinery and equipment n.e.c. (except)
28259 Tobacco Processing Machinery Manufacturing
100
49
29
Manufacture of motor vehicles, trailers and semi-trailers
100
50
3011101
Building of Commercial Vessels
100
51
3011103
Ships and Floating Structures Sections Manufacturing
100
52
3011905
Construction of Drilling Platforms, Floating or Submersible
100
53
3011906
Construction of Floating Structures
100
54
3011907
Building of Hovercraft
100
55
3012
Building of pleasure and sporting boats
15
56
3020
Manufacture of railway locomotives and rolling stock
20
57
3030
Manufacture of air and spacecraft and related machinery (except):
3030006 Military Ballistic and Guided Missiles Manufacturing
100
58
3090
Manufacture of transport equipment n.e.c.
20
59
31
Manufacture of furniture
15
60
3220
Manufacture of musical instruments
2
61
3230
Manufacture of sports goods
3
62
3240
Manufacture of games and toys
3
63
3250
Manufacture of medical and dental instruments and supplies
20
64
3290
Other manufacturing n.e.c.
3
65
3312001
Repair and maintenance of train engines
15
66
3312002
Repair and maintenance of engines ship
15
67
3315001
Repair and maintenance of ships
15
68
3315004
Repair and maintenance of trains and railway equipment
15
69
3315005
Maintenance and Repair of Aircrafts Engines
15
70
3315006
Repair and maintenance of aircraft
15
Service sector
ISIC4
Business activity
Minimum Capital
Conditions and controls for foreign direct investment
71
6910002
Legal Consultancy Offices
As per the applicable regulations
- Not to advocate before the UAE courts.
- Not to carry out any judicial procedure before courts, arbitral tribunals, and judicial and administrative committees.
- Not to carry out attestation activities
- To obtain the approval of the relevant entities in charge of licensing such activities in the State
- To be a natural or legal person known for its excellence in this field
72
692
Accounting, bookkeeping and auditing activities; tax consultancy
As per the applicable regulations
Only permissible for tax planning for businesses and consultancies, preparing and reviewing taxes on businesses
73
711
Architectural and engineering activities and related technical consultancy
As per the applicable regulations
To be a natural or legal person known for its excellence in this field
74
862
Medical and dental practice activities
75
75
Veterinary activities
76
620
Computer programming, consultancy and related activities
As per the applicable regulations
To provide a technical team of no less than 5 specialized programmers by the end of the first year of the company
77
72
Scientific research and development
As per the applicable regulations
As per the applicable regulations
78
7730-77300
Renting and leasing of other machinery, equipment and tangible goods
79
471
Retail l sale in non-specialized stores (except Cooperative Societies 4711001)
80
731
Advertising
81
732
Market research and public opinion polling
82
702
Management consultancy activities
83
712
Technical testing and analysis
84
331
Repair of fabricated metal products, machinery and equipment (except ships or aircrafts and other transport equipment)
85
8121-81210
General cleaning of buildings
86
742
Photographic activities
87
8292-82920
Packaging activities
88
823
Organization of conventions and trade shows
89
741
Specialized design activities
90
7490005
Legal Translation Services
91
7490006
Translation services, movies and television programs
92
7490012
Translation Publications Services
93
8299002
Translation Services
94
41
Construction of buildings
As per the applicable regulations
Only permissible for large-scale infrastructure projects such as airports, highway roads, sport facilities and projects whose value exceed AED 450,000,000
95
42
Civil engineering
96
432
Electrical, plumbing and other construction installation activities
97
433
Building completion and finishing
98
431
Demolition and site preparation
99
439
Other specialized construction activities
100
7730009
Construction and Building or Demolition Machines and Equipment Renting
101
851
Pre-primary and primary education
As per the applicable regulations
102
852
Secondary education
103
853
Higher education
104
854
Other education
105
370
Sewerage
As per the applicable regulations
As per the applicable regulations in this regard
106
382
Waste treatment and disposal
107
3900001
Pollution Consequences Treatment and Environment Protection
108
861
Hospital activities
100
109
869
Other human health activities
70
As per the applicable regulations
110
8211001
Hotel Management
As per the applicable regulations
111
8211004
Restaurants Management
112
90009
Creative activities and presentation of arts drama (theater)
Permissible only for theater activities and live bands
As per the applicable regulations
113
9000104
Music Band
114
9000110
Circus
115
8130002
landscape and gardening services
116
9103-91030
Botanical and zoological gardens and nature reserves activities
Permissible only for public garden services and specialized garden services.
117
5012-50120
Sea and coastal freight water transport
As per the applicable regulations
118
5022001
Internal Water Transportation of Goods
119
7730016
Commercial Ships Rental
120
5222002
Ship Piloting and Towing
121
5222007
Marine towing of boats and jet sk
122
New
Activities of holding companies in intellectual property
Source: Fichte & Co.
Waheed Abbas
Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that directly affect the lives of UAE consumers. He frequently reports human interest stories, too.
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