Every business needs a licence from either the emirate's economic department (mainland) or a free zone authority, and regulated sectors need separate approval from a sector regulator. Strategic-impact activities need federal approval for foreign investors, and some activities remain reserved to UAE nationals. The main incentive is the free zone system, including the 0% Qualifying Free Zone Person tax regime.
Trade licences and activity lists
A licence from the relevant federal or emirate authority (mainland) or free zone authority is required before trading. Each emirate publishes which activities are open to full foreign ownership; at the time of the 2021 reforms Abu Dhabi listed 1,105 activities and Dubai more than 1,000. Activity lists change, so the current list should be checked with the emirate department.
Some activities are reserved or restricted. Fisheries-related services require full UAE ownership, and strategic-impact activities such as banking, insurance, telecommunications and defence need federal approval.1234
Sector regulators
Banking, insurance, aviation, real estate development, higher education and other regulated sectors need approval from the relevant regulator in addition to the trade licence, and those regulators may impose their own ownership limits. In the DIFC and ADGM, financial services are regulated by each zone's own financial regulator rather than the federal regulators.
The order in which sector approvals and the trade licence are obtained differs by sector, so the licensing sequence should be confirmed with the regulator early.56
Free zones as an incentive
Free zones offer full foreign ownership, their own licensing and, for entities meeting the Qualifying Free Zone Person conditions, 0% corporate tax on qualifying income for an incentive period that may not exceed 50 years. Direct trading into the mainland usually needs an onshore presence.78
Documents usually needed
- Commercial licence listing permitted activities
- Sector regulator approval or licence where the activity is regulated
- Federal approval for strategic-impact activities
- Free zone lease and licence for free zone entities
Common mistakes
- Carrying on an activity not listed on the licence.
- Applying for a trade licence before checking whether a sector regulator must approve first.
- Assuming free zone status alone delivers 0% corporate tax.
- Relying on old activity lists; emirates update them and agency names have changed.
When the business crosses borders
- Foreign regulated businesses (for example banks or insurers) cannot rely on home-country licences and need UAE or financial free zone authorisation.
- Financial services can be licensed federally on the mainland or in the DIFC or ADGM, each with different market access; the choice affects whom the business may serve.
Questions businesses ask
Is one licence valid across all emirates?
A mainland licence is issued by the relevant emirate authority and a free zone licence by the free zone authority. Whether premises or activities in another emirate need a separate licence or branch should be confirmed with that emirate's economic department.1
Which activities remain closed or restricted to foreign investors?
Strategic-impact activities such as defence, banking and insurance, currency printing, telecommunications and Hajj and Umrah services need federal approval, and some activities such as fisheries-related services require full UAE ownership. Emirates may restrict others.43
What this guide does not yet confirm
These points need checking with a qualified local professional in the United Arab Emirates before you rely on them.
- Federal and emirate government procurement rules, supplier registration and the In-Country Value programme were not confirmed.
- Foreign ownership of real estate (freehold areas designated by each emirate, for example under Dubai and Abu Dhabi property laws) was not confirmed and is not stated here.
- Financial services licensing by the Central Bank, the Securities and Commodities Authority, the DFSA (DIFC), the FSRA (ADGM) and Dubai's virtual assets regulator was not confirmed.
- The commercial agency law (relevant to distributors and agents on the mainland) was not reviewed.
- Current emirate activity lists for full foreign ownership were not checked against the emirate departments.
Sources and review status
Each statement is numbered to the source it was checked against. We use official sources where we can, and each statement says whether it was checked against an official or a secondary source. Sources last checked on 19 October 2026. None of it has been professionally reviewed yet: it is research checked against official and secondary sources by WONE Global, not legal or tax advice.
A foreign investor needs a company licence from the relevant federal or emirate authority for a mainland business, or from the free zone authority for a free zone business. Emirate economic departments (for example in Dubai and Abu Dhabi) issue mainland trade licences; each free zone authority licenses entities in its zone.
Secondary source.
Abu Dhabi's economic department identified 1,105 commercial and industrial activities open to full foreign ownership, and Dubai opened more than 1,000 activities while excluding strategic-impact activities in seven sectors. Emirate-level lists for mainland companies. Lists are updated by each emirate's economic department and may have changed since publication.
The page appears to date from the 2021 reforms and uses former agency names (Department of Economic Development; Dubai Economy). Current lists should be checked with the emirate department.
Fisheries-related services require 100% UAE national ownership. Mainland. Other activities may be reserved at emirate level.
Secondary source; the underlying Cabinet Decision could not yet be checked.
Foreign investors need approval from the relevant federal authority to carry on activities of strategic impact, which under Cabinet Decision No. 55 of 2021 include security, defence and military activities; banks, exchange houses, finance companies and insurance; currency printing; telecommunications; and Hajj and Umrah services. Mainland activities. The list summarised in the source may not be complete; Dubai's guidance refers to seven strategic-impact sectors. Emirates may also keep their own lists of restricted activities.
Secondary source: the text of Cabinet Decision No. 55 of 2021 could not yet be checked. Chambers Doing Business In 2025 (UAE) gives a wider list of restricted sectors, including upstream oil and gas, water and electricity distribution, Quran memorisation centres and fisheries-related services.
Sector regulators, including those for banking, insurance, aviation, real estate development and higher education, may impose licensing requirements or ownership limits in addition to the trade licence. Mainland; free zones and the financial free zones have their own regulators for regulated activities.
Secondary source.
The DIFC and ADGM have their own company laws based on English common law principles, so the federal Commercial Companies Law does not apply to companies incorporated there; non-financial free zones are subject to federal law plus their own regulations, and may exclude the Commercial Companies Law. ADGM applies English common law directly; the DIFC uses a common-law-based framework. Free zone rules vary by zone (for example Jafza excludes the Commercial Companies Law, but its registrar may apply some provisions where Jafza's own regulations are silent).
Secondary source. DIFC and ADGM official pages could not yet be checked.
A Qualifying Free Zone Person pays corporate tax at 0% on qualifying income and 9% on other taxable income, provided it keeps adequate substance, earns qualifying income, has not elected to be taxed at standard rates and meets transfer pricing requirements. Free zone persons only (mainland entities cannot use this regime). Failing any condition removes the status from the start of that tax period. The incentive period may be extended but cannot exceed 50 years. Detailed qualifying activities and de minimis rules are in Cabinet and Ministerial Decisions not reviewed here.
Free zone companies have generally benefited from customs exemptions but cannot trade directly in the mainland market unless they establish an onshore presence. Non-financial free zones. Free zone rules and mainland distribution arrangements vary.
Secondary source, which describes the position as historical. The customs treatment of free zone to mainland movements was not confirmed on a customs authority page (dubaicustoms.gov.ae could not yet be checked).
Questions on this topic
4 statements on licensing, regulated sectors and incentives in the United Arab Emirates
