UAE Publishes 9 Business Activities Foreigners Cannot Fully Own in the Country

UAE Publishes 9 Business Activities Foreigners Cannot Fully Own in the Country

  • The UAE government announced a list of business activities in which foreign nationals are legally barred from holding 100 percent ownership
  • The restricted sectors span areas as varied as national security and defence, banking and insurance, and religious services such as Hajj and Umrah organising
  • Foreigners looking to invest in the UAE must understand which industries remain under strict local ownership rules before registering a business

The United Arab Emirates has published a list of nine categories of business activity in which foreign investors are prohibited by law from holding full ownership.

Under UAE regulations, certain sectors are reserved for majority or complete control by Emirati nationals, limiting the extent to which foreigners can participate as outright business owners in those fields.

UAE lists 9 business activities foreigners cannot have full ownership of
UAE reveals 9 business activities foreigners cannot fully control in the country. Images for illustration purposes only. Photo Source: Getty Images/Chris Jackson/Tim de Waele
Source: Getty Images

UAE: Business activities restricted for foreign ownership

The UAE government specified that the following categories cannot be fully owned by foreign nationals:

1. Security and defence activities, as well as any activities of a military nature

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2. Telecommunications

3. Banks, exchange houses, financing companies, insurance firms, and establishments involved in banknote or coin production

4. Other designated categories as determined by the relevant authorities

5. Commercial agencies

6. Hajj and Umrah organising services

7. Holy Quran recitation institutes 8. Fish catching

9. Natural pearl catching and marine animal catching

What the restrictions mean for foreign investors

The breadth of the list reflects the UAE's intention to preserve national interests across several sensitive and culturally significant industries. Sectors tied to national security, such as defence and telecommunications, are expected to remain under local control, as is the financial sector, which covers banks, exchange and financing businesses, insurance providers, and currency production.

Beyond those, the restrictions extend into areas with deep cultural and religious significance. Businesses involved in organising Hajj and Umrah pilgrimages, as well as institutes dedicated to Holy Quran recitation, are specifically named. Traditional industries tied to the country's heritage, including pearl catching and broader marine animal harvesting, also appear on the list.

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Foreign entrepreneurs and investors considering entering the UAE market are advised to review the full scope of these restrictions carefully before proceeding with business registration, particularly in any sector that touches on the listed categories.

Residency permit: UAE states financial requirement

Meanwhile, Legit.ng recently reported that the UAE outlined the requirements and application process for foreigners seeking a residence visa.

The government listed documents applicants need to provide, including a valid passport, personal photograph, proof of kinship, employment certificate, and health insurance.

Source: Legit.ng

Authors:
Muhammed Hammed Olayinka avatar

Muhammed Hammed Olayinka (Human Interest Editor) Muhammed has worked with Oracle UNILORIN, Opera News Hub, Scopper News, Gistreel, and now LEGIT.ng. He won the NAPSS President Writing Skirmish (2017) and was first runner-up in the UNILORIN Senate Writing Contest (2018). He can be reached via email at muhammed.hammedolayinka@corp.legit.ng