The United Arab Emirates (UAE) is one of the top destinations for foreign direct investment (FDI). Favourable policies, world-class infrastructure, tax incentives, free zones, and a strategic location for Asia, Europe and Africa continue to accelerate the UAE’s attractiveness as a global FDI destination. 

A diversified economy with a high growth potential across all sectors such as technology, finance, real estate, retail, logistics, energy and more further strengthens this position. Recent reforms in the country have made full 100% foreign ownership possible in most of the activities.

RH & HALE Lawyers provides you expert services in foreign investment law UAE and FDI Dubai advisory. We assist international investors, corporates and family offices at every stage, from entity formation and licensing to ongoing compliance and dispute resolution, facilitating smooth market entry and long-term success.

Why the UAE is a Top FDI Destination

Foreign investment in the UAE refers to capital invested by entities or individuals from outside UAE into a business located in the UAE to establish a new business or expand an existing one. It covers establishing new businesses, buying shares, or developing long‑term business operations.

The UAE promotes foreign investment through 100% foreign ownership in most of the UAE mainland sectors, free zones, tax incentives, and stability in the business environment. Foreign investment in the UAE assists in the growth of the non-oil economy, job creation, and technological advancements.

Technology, fintech, e-commerce, healthcare, education, logistics, renewable energy, tourism and manufacturing are the key sectors of foreign investments.

Common Challenges in Foreign Investment UAE

There are many complexities for international investors to deal with, including:

• Ownership restrictions and Positive/Negative Lists.

• Selecting the best legal entity and jurisdiction (mainland and free zone).

• Practices that comply with licensing, approvals and regulatory requirements.

• Drafting strong Shareholder Agreements, Joint Venture Agreements.

• Knowing the implications of corporate taxes and economic substance rules.

• Obtaining visas and residency permits from investors.

• Individual strategic sectors with specific risk management needs that must be obtained on a separate basis.

• IP protection and dispute resolution mechanisms.

Taking early legal advice is important to prevent costly delays, compliance or disputation issues.

Comprehensive Foreign Investment Legal Services

RH & HALE Lawyers offer comprehensive support for foreign investors seeking to form a business in the UAE:

• Company Formation & Setup including mainland LLCs and free zone companies, representative offices and branches. Full assistance with 100% foreign-owned set-up structures.

• FDI Licensing & Approvals by Positive Lists, Department of Economic Development (DED) procedures and business sector regulators.

• Strategic Sector & Restricted Activities such as “Activities of Strategic Effect”, approvals for restricted sectors with ownership restrictions etc.

• Investment Agreements & Structure involving shareholders agreements, joint ventures, investment contracts and holding structures.

• Regulatory & Compliance such as Golden Visa, Work Permits, Ultimate Beneficial Owner (UBO) reporting requirements, Anti-Money Laundering (AML) sanctions, etc.

• Mergers, Acquisitions (M&A) & Due Diligence including FDI related M&As, share acquisitions with complete legal due diligence.

• Disputes Resolution involving commercial disputes, arbitration (DIFC, ADGM or onshore) and investment protection.

• Ongoing Advisory involving corporate governance, contract review, On-going regulatory developments and exit strategies.

Relevant Legal Framework in the UAE

Our knowledge and experience are based on the following key laws and policies related to foreign investments:

• Federal Decree-Law No. 32 of 2021 on Commercial Companies (UAE Companies Law) – This is the current governing law for foreign ownership. It allows 100% foreign ownership in most commercial activities (with the exception of activities on the List of Strategic Impact Activities). The previous requirement for 51% UAE national ownership was eased in most cases.

• Ministry of Investment & Positive Lists – licenses and approvals issued by federal authorities and emirate authorities for sector-specific investments.

• Free Zone Regulations – rules applicable to DMCC, JAFZA, ADGM, DIFC and other Free Zones – often offering further incentives, and full foreign ownership.

• Related Laws – Federal Law on Anti-Money Laundering, Commercial Transactions Law, Immigration and Residency laws (including Golden Visa) and Competition Law – which can be relevant to M&A transactions.

We keep updated of changes and developments in the field to serve as a source for future opportunities.

How RH & Hale Helps with Foreign Investment

We are a strategic, practical, solution-oriented, client-focused service provider. We combine knowledge of UAE FDI regulation with commercial application to assist the structure and development of your business.

Services we offer:

• Advising on the most suitable investment structure and shareholding arrangements.

• Support with company formation, licensing and regulatory approvals.

• Drafting of investment agreements and shareholders’ agreements.

• FDI license applications and compliance support.

• Investor visa and residency services.

• Risk mitigation and compliance services.

• Continuing corporate governance and compliance support.

Our Foreign Investment Process

We follow the steps of clear and efficient service for our international clients:

1. Initial Consultation – In the initial meeting we understand your investment objectives, sector and preferences.

2. Strategic Assessment – Our Foreign investment lawyers then recommend the best entry structure, location and compliance process.

3. Documentation & Licensing – We draft all documents and fill out relevant licensing applications.

4. Setup & Launch – Our firm also assists with the incorporation, visa processing and start-up support.

Why choose RH & HALE Lawyers?

• Our Foreign Investment lawyers have a deep understanding of UAE FDI reforms and extensive experience with company formation.

• We provide full end-to-end support with expertise in corporate, commercial, regulatory and dispute resolution.

• We adopt a Client-first approach, deliver efficient, risk-mitigated and successful investment solutions.

• We have Strong Dubai presence and extensive network throughout UAE and overseas jurisdictions.

• We provide trusted service from leading corporate clients and investors in the market.

Invest with Confidence in the UAE

Trust RH & HALE Lawyers with your securities and investments operations, ensuring you structure, launch and grow your foreign investment securely and efficiently.