Published 2026-07-14 · Last updated 2026-07-14 · By GCI Research Desk, DIFC, Dubai
To buy a business in Dubai, confirm you can own the activity as a foreigner, verify the trade licence with Dubai Economy and Tourism or the relevant free zone, reconcile the financials to bank and tax records, and confirm any sector approval survives the change of ownership. Full foreign ownership is available in most mainland activities and all free zones. Corporate tax is nine percent above AED 375,000 and VAT is five percent.
Can a foreigner buy a business in Dubai?
Yes, in most cases. Across most mainland activities and all free zones, full foreign ownership is now permitted. A short list of strategic activities still requires a local partner or agent, and the rule depends on the specific activity code, not the sector in general. Confirm the activity with the issuing authority before you sign.
Which authority issues the licence?
Where the licence sits determines who regulates the business and what it can do.
| Jurisdiction | Issues the licence | Notes |
|---|---|---|
| Dubai mainland | Dubai Economy and Tourism | Can trade across the UAE |
| Free zone | The specific zone, for example DMCC, JAFZA, DAFZA, Meydan, IFZA | Zone rules govern mainland trade |
| DIFC | DIFC Registrar of Companies | Separate common law jurisdiction and courts |
The tax position
UAE corporate tax applies at nine percent on taxable income above AED 375,000. VAT is five percent, administered by the Federal Tax Authority. If the seller claims a free zone qualifying income position for a reduced corporate tax rate, treat it as a claim to be confirmed in writing, not a given. The dirham is pegged to the US dollar, which removes currency risk for dollar based investors.
The due diligence that matters in Dubai
Verify the trade licence and its history, reconcile thirty six months of audited financials to twelve months of bank statements and the VAT returns, confirm the tenancy and Ejari with the Dubai Land Department, and check employee end of service liabilities through MOHRE and the wage protection system. Confirm sector approvals, for example a Dubai Health Authority clinic licence or a Dubai Economy and Tourism hotel licence, survive the change of control before you rely on them.
How GCI helps you check the business before you buy
You have found a Dubai business worth a closer look. Before you spend on lawyers and accountants, Gulf Commercial Insights screens that specific deal for you. The conviction engine reads the whole opportunity, argues the case for buying against its strongest counter arguments, and flags every figure that is assumed rather than proven. You get back a source graded verdict of CONVICTION, PROCEED WITH CONDITIONS, WATCH, READY or AVOID, with each claim tagged VERIFIED, ESTIMATED or REPORTED.
For a buyer, that answers the three questions that matter:
- Should you walk away, renegotiate the price, or move to full due diligence?
- What are the specific risks that could sink this deal, ranked, with the evidence behind each?
- What should you put to the seller in writing before you sign?
So your time and your advisory budget go only to the deals worth it, and you go into the negotiation knowing what you are buying. We are a technology and research firm, not a DFSA regulated financial services firm.
Checking a Dubai business you want to buy?
Start with a free Deal Health Score on the specific deal, then get the full Conviction Report with a clear verdict and evidence tiered findings, priced to your mandate. See the public record of past verdicts first.