Federal Decree-Law No. 26 of 2020 (PDF 500 KB), which came into effect in early 2021, overhauled the UAE’s Commercial Companies Law No. 2 of 2015 by permitting 100 per cent foreign ownership of mainland companies. It removed the requirement for 51 per cent Emirati ownership or a local agent for most business activities, aiming to boost foreign investment, though strategic sectors still require approvals. This decree was a major step toward economic diversification, aligning with the UAE's goal of fostering a more open, competitive investment environment. The changes introduced by this decree were later further refined and consolidated by Federal Decree-Law No. 32 of 2021on Commercial Companies. This law applies on any economic entity which practice any commercial, financial, industrial, agricultural, real estate or other kinds of economic activity on the mainland. Article 4 of the Decree Law above mentions companies that are exempt from its provisions.
