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Ras Al Khaimah Allows 100% Foreign Ownership in Mainland

Ras Al Khaimah

In a bold step to attract global investors and strengthen its business landscape, Ras Al Khaimah (RAK) has now opened the door for 100% foreign ownership of companies on its mainland. Until recently, most foreign investors needed a local Emirati sponsor to operate, but that requirement has now been lifted for many business activities.

This change aligns with the UAE’s wider vision to diversify its economy, simplify investment entry, and become one of the most business-friendly destinations worldwide. Under the new setup, companies established in RAK mainland with 100% foreign ownership will be considered “national companies”, enjoying the same rights as UAE-owned firms.

For global entrepreneurs, this move bridges the gap between mainland access and free zone advantages — giving investors full control, operational freedom, and market access in one of the UAE’s fastest-growing emirates.

What Changed: Understanding the 100% Ownership Rule

1. Full Control, No Local Sponsor

Foreign investors can now own 100% of their mainland company in RAK without the need for a local Emirati partner or agent.

2. Legal Status as “National Companies”

Businesses set up under this structure are considered UAE “national companies,” enjoying equal rights, confidentiality, and protections.

3. Key Investor Benefits

  • 100% ownership and control

     

  • Freedom to repatriate profits abroad

     

  • Protection against expropriation (state seizure)

     

  • Ability to add or transfer ownership

     

  • Access to government contracts and mainland tenders

     

4. Eligible Sectors

The “Positive List” includes industries such as:

  • Manufacturing & industrial

     

  • Agriculture

     

  • Information technology

     

  • Education

     

  • Healthcare

     

  • Construction

     

  • Transport & logistics

     

  • Scientific & technical activities

     

(Always confirm your activity is on the approved list before setup.)

 

Why Ras Al Khaimah Is the Smart Choice

1. Lower Business Costs

RAK offers competitive setup and operating costs, making it attractive for startups, SMEs, and manufacturing units.

2. Strategic Location

Located at the northern tip of the UAE, RAK connects easily to GCC markets, Asia, and Africa — with seaports, highways, and RAK International Airport nearby.

3. Strong Industrial Base

Manufacturing contributes about 30% of RAK’s GDP, supported by RAKEZ’s industrial zones and logistics infrastructure.

4. Mainland Reach + Free Zone Benefits

Investors can now enjoy the flexibility of the mainland (serving the entire UAE market) with the ownership perks of a free zone.

 

How to Set Up a 100% Foreign-Owned Company in RAK Mainland

Step 1 – Choose Your Activity

Check whether your intended business activity is part of the UAE FDI Positive List.

Step 2 – Apply to RAK Department of Economic Development (RAK DED)

Submit your application, including trade name reservation and activity selection, for approval.

Step 3 – Obtain Your Licence from RAKEZ

After approval, RAKEZ will issue your licence under the FDI framework, officially recognizing your company as a 100% foreign-owned mainland entity.

Step 4 – Set Up Office and Visa Arrangements

Secure a physical office or flexi-desk (as required) and handle visa applications for staff.

Step 5 – Start Operations

Once fully licensed, you can open bank accounts, hire employees, and begin trading freely across the UAE.

 

Who Should Consider This Opportunity

  • Foreign entrepreneurs wanting full control of a UAE business

     

  • SMEs looking for affordable entry to the UAE market

     

  • Manufacturing & industrial investors seeking a strategic Gulf base

     

  • Tech and service firms targeting the UAE and wider GCC region

     

  • Global investors expanding into Middle Eastern markets

     

Risks & Considerations

  • Ensure your business activity is on the Positive List

     

  • Understand local compliance and reporting obligations

     

  • Budget for annual renewals, visas, and rental costs

     

  • Check for industry-specific regulations (especially in education, healthcare, etc.)

     

Conclusion

Ras Al Khaimah’s decision to allow 100% foreign ownership in the mainland reshapes how global investors view the UAE. It provides the freedom, security, and flexibility investors need — without the sponsorship limitations of the past.

Whether you’re a startup founder, manufacturer, or global business leader, RAK Mainland is now one of the most strategic and cost-effective gateways into the UAE economy.