Conditions for investment in Dubai for foreigners

The name of the Emirate of Dubai has risen regionally and globally over the past two decades as a major destination for investors from all over the world, and the city has become one of the most famous centers of trade and entrepreneurship at the regional and international levels.

Dubai has reached this global status through well-planned steps, comprehensive development, and policies and plans that have led to the complete advancement of infrastructure and foundational projects, creating an ideal environment that attracts investors and businesspeople from all countries and communities.

As a result, the Emirate of Dubai has emerged as a central and essential hub for innovators, creators, and technology and invention pioneers worldwide, after creating a developed environment for comfortable investment based on modern and advanced technological infrastructure.

To regulate the investment market in Dubai and create a legal environment that protects the interests of all parties, while establishing a neutral competitive environment, the Dubai government has enacted legislations, laws, and conditions specific to foreign investment in the emirate, along with packages of support, encouragement, and facilities for successful investors.

This article explains to interested foreigners the most important laws and conditions for investing in Dubai, the available investment fields, in addition to the key facilities and support provided by the Government of Dubai to foreign investors.

Foreign Investment Laws in Dubai

The legal legislations regulating the process of foreign investment in Dubai are based on laws specific to the emirate itself, issued by the Government of Dubai, in addition to other general laws issued by the federal government of the United Arab Emirates.

The most important laws related to foreign investment in the Emirate of Dubai can be summarized as follows:

First: Dubai Economy allows any foreign investor to have full ownership in the emirate, according to Federal Law Decree No. 26 of 2020 amending certain provisions of Federal Law No. 2 of 2015 regarding commercial companies.

Second: Full ownership (100%) for foreign investors in Dubai includes more than 1,000 commercial and industrial activities, except for economic activities related to the country’s strategic sectors, which include 7 different sectors.

Third: Before a foreign investor starts any commercial activity in the Emirate of Dubai, they must obtain a commercial license, which requires several procedures to be completed step by step until the investor receives the legal license and can start their investment activity without any issues.

Forms of Foreign Investment in Dubai

The legal forms of investment activities and projects in Dubai vary depending on the sectors and different human fields. Foreign investment projects in the Emirate of Dubai are highlighted in several legal forms, including:

• Sole Proprietorship

This is an establishment owned by only one person, with no more than 9 employees, and has an economic activity (commercial, professional, industrial, agricultural).

• Limited Liability Company

A company consisting of two or more partners, where each partner’s liability for the company’s financial obligations is limited to their share in the capital, as well as profits and financial returns.

• Civil Company

Companies established by a group of individuals sharing a profession or specialty. This type of company is subject to the provisions of the civil law and its own internal legal regulations.

• General Partnership

Commercial companies consisting of two or more partners, where each partner is fully liable for all financial obligations of the company, regardless of their share. The company’s financial obligations can be paid from the partners’ personal assets.

• Private Joint Stock Company

A type of company with a specific commercial activity, where the capital is divided into equal shares called stocks, and the number of founders is not less than three.

• Public Joint Stock Company

A type of company with a specific commercial activity, where the capital is divided into equal shares called stocks, the shares are offered for public subscription, and the number of partners is unlimited.

• Representative Office

A commercial establishment representing a specific brand or a manufacturing company outside the country, acting on behalf of the parent company and marketing its products or services.

• Government Liaison Office

An office established by a foreign government in Dubai to promote its industrial and commercial institutions in Dubai’s investment market and enhance commercial cooperation.

• Branches of Foreign and Local Companies

Regional branches of various international companies, or branches of different foreign companies that found in Dubai an opportunity to expand their investment activities in the UAE or the Middle East.

• Free Zone Branches

Companies with commercial activities established in one of the free zones specialized in certain investment activities.

• Single Person Company

Companies whose capital is owned by only one person, who is not liable for any financial obligations related to the company.

• Investment through Property Purchase

Foreigners can invest in Dubai by purchasing properties, generating profits either by renting out the property or earning a profit margin upon resale and development.

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Conditions for Investment in Dubai for Foreigners

For a foreign investor to legally and safely start their investment activities in Dubai, they must fulfill the investment conditions in the emirate, which are as follows:

• Issuing a commercial license related to the investment activity.

This entails obtaining initial approval, having an Emirates ID and a unified number, reserving the trade name, obtaining the company’s memorandum of association, service agent contract, and the lease contract issued by the Real Estate Regulatory Authority.

• Complying with the conditions of the type of investment specified by the investor

Such as the conditions for opening companies in different free zones, or choosing a specific type of company such as general partnerships or joint stock companies, each of which has different conditions that the investor must meet.

• Complying with investment laws in the United Arab Emirates

This includes tax obligations, mandatory insurance, transparency in presenting the financial budget and annual revenues, and other legal matters related to employees and others.

• Achieving the capital value required for the announced type of investment

Each type of investment in Dubai must reach a certain value, which is determined in the legal legislations for foreign investment in the country.

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Support for Foreign Investors in Dubai

Support for foreign investors in Dubai comes from the responsible authorities in the emirate through the Dubai Investment Development Agency, which provides basic information, offers consultations and guidance to foreign investors on all business and management matters, helps determine the best legal forms for companies, and introduces the best available investment opportunities.

Dubai’s government also offers significant periodic awards to the best performing investment companies in the emirate, adopts any innovative and pioneering investment ideas, and thus serves as an incubator for the world’s most important entrepreneurial projects.

Permitted Investment Activities for Foreigners in Dubai

The laws and legislations related to foreign investment in the Emirate of Dubai allow foreigners to invest in more than a thousand commercial and industrial activities, provided that none of these investment activities have strategic impacts on the state.

Non-Permitted Investment Activities for Foreigners in Dubai

According to the official laws in force in the Emirate of Dubai, foreign investors are not allowed to invest in 7 sectors that have a strategic impact on the country, such as oil, electricity, water, and others.

Start Your Real Estate Investment in Dubai with Imtilak Global

For a safe and successful investment start in Dubai, foreign investors are advised to turn to the most reliable and experienced companies in the emirate’s investment market.

Here, Imtilak Global presents itself as one of the best real estate and investment companies operating in Dubai, offering its integrated services with high professionalism. The company works to seize the best investment opportunities and present them to investors wishing to invest in Dubai.

The company also provides other services related to property management and leasing, or resale, in an additional package of distinguished post-sale services.

FAQs about Investing in Dubai for Foreigners