Can Akiman Free Zone Company Be Wholly Owned by Foreign Investors?

In the investment landscape of the United Arab Emirates, the Akiman Free Zone has become a popular choice for global investors to enter the Middle East market with the core advantage of "100 percent foreign ownership. Different from the mandatory requirement of "51% shareholding by local shareholders" in the mainland of the United Arab Emirates, the Akiman Free Zone has completely broken the restrictions on foreign shareholding through clear legal guarantees and policy incentives, providing investors with more independent business space.

1. the UAE Federal Legal Framework: Foreign Ownership of the "Foundation Rules"

the UAE Commercial Companies Act (revised in 2021) is the core legal basis for foreign ownership. According to the Act:

free zone companies: Free zone companies established in the UAE (such as those in the Akiman Free Zone) can be 100 per cent foreign-owned without the need for local guarantors or shareholders. This policy applies to most non-sensitive industries, including trade, logistics, technology, and consulting.

Mainland companies: Companies registered in the UAE mainland (non-free zone) are subject to foreign ownership restrictions. For example, traditional industries (e. g. retail, real estate) usually require foreign ownership of no more than 49 per cent, but specific industries (e. g. manufacturing, agriculture) can achieve 100 per cent foreign ownership with cabinet approval.

Exceptions: Industries related to national security and public interest (such as military, energy, media) are still prohibited from wholly-owned foreign holdings, even if they are located in free zones.

2. Akieman Free Zone's "Special Policy Package": Wholly Foreign Owned "Accelerator"

the Ajman Free Zone (AFZ) further strengthens the attractiveness of foreign investment through the following policies:

zero Foreign Ownership Restrictions: AFZ explicitly allows wholly foreign ownership with no minimum capital requirements. Depending on their business needs, companies can choose a structure such as a limited liability company (LLC), a subsidiary or a free zone entity (FZE), all of which support 100 percent foreign ownership.

Tax and capital freedom: AFZ enterprises enjoy 0% corporate income tax, personal income tax and customs exemption, profits can be freely remitted, and multi-currency bank accounts are supported to reduce exchange rate risk.

Simplify the registration process: AFZ provides a "one-stop" service. Foreign-funded enterprises can complete the registration within 3-5 working days without submitting complex business plans or proof of funding sources.

Industry incentives: For specific industries (e. g. manufacturing, logistics, technology),AFZ provides additional benefits, including land lease subsidies and relaxation of employee visa quotas to further reduce foreign operating costs.

Data support: According to AFZ official data, as of 2025, the proportion of wholly-owned foreign-owned enterprises in its settled enterprises exceeds 85%, covering trade, manufacturing, services and other fields.

3. Industry Restrictions and Compliance Risks: Wholly Owned Foreign Owned "Red Line"

despite the liberal Akiman Free Zone policy, foreign investment still needs to circumvent the following restrictions:

negative List Industry: The UAE has a "negative list" at the federal level to prohibit foreign investment in military industry, oil and gas exploration, media and other fields. Even if located in the free zone, foreign-funded enterprises involved in such business are still required to enter into joint ventures with local enterprises or apply for special permits.

"Omanization" policy (localization requirements): Although free zone enterprises are not subject to the mainland "Omanization" ratio restrictions, if they recruit employees in the UAE, they still need to comply with federal labor laws and prioritize the employment of local citizens (e. g. technical positions, management positions). For example, AFZ companies are required to apply for a work visa for each foreign employee and pay a percentage of the local employee training fund.

Antitrust review: If a foreign-funded enterprise forms a dominant market position in a specific industry (e. g. telecommunications, finance), it may trigger a review by the Federal Competition Commission, and the risk of business concentration needs to be assessed in advance.

4. practical advice: foreign wholly-owned "landing strategy"

verify industry access in advance: Check whether the business involves a negative list through the UAE Investment Promotion Agency (Invest in UAE) or AFZ website to avoid the risk of non-compliance.

Choose a compliance structure: Choose a free zone entity (FZE) or a limited liability company (LLC) based on business needs, the former is suitable for pure holding or regional operations, and the latter is suitable for scenarios that require physical office.

Use professional agency services: entrust AFZ authorized agency to assist in registration and ensure document compliance (e. g. articles of association, shareholder resolutions need to be notarized).

Focus on policy developments: The UAE government is advancing its "2031 National Vision" and may further relax foreign investment restrictions in the future, suggesting that it pay attention to the Federal Ministry of Economic Affairs (MoE) policy updates.

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