Mainland vs. Free Zone: Which Setup is Right for You in 2026?
Dubai is famous for its business-friendly environment, but for a newcomer, the choices can be overwhelming. The most common question every investor asks is: "Should I choose Mainland or Free Zone?" The answer depends entirely on your business model and where your customers are located. Let’s break down the differences to help you decide. The Power of Mainland Companies Historically, Mainland companies required a local sponsor who held 51% of the shares. This was a major barrier for many international investors. However, recent changes in the law have revolutionized the market. Now, you can obtain a Mainland license in Dubai with 100% Foreign Ownership for more than 1,000 commercial and industrial activities. This is a game-changer. Trade Anywhere: Unlike Free Zones, a Mainland license allows you to trade directly with consumers anywhere in the UAE and internationally. Government Contracts: If you plan to bid for government tenders, a Mainland entity is often mandatory. ...