In the UAE, local investors can often own franchises outright, while foreign investors may need a local partner or operate in a free zone to get full ownership, depending on the business activity.

Local investors in the UAE can usually own businesses without restrictions, while foreign investors sometimes face extra steps like checking if their business activity allows 100% foreign ownership or if they need a local service agent. It can feel a bit confusing at first, but once you understand the rules, the path becomes much clearer and less intimidating.

In the UAE, franchise ownership rules differ for local and foreign investors mainly in terms of legal structure and sponsorship. Foreign investors usually need a local sponsor or partner for mainland businesses, while free zone licenses allow 100% foreign ownership but limit operations to the zone or export markets. Local investors have fewer restrictions and can operate anywhere. Understanding these differences is essential for compliance, securing the right license, and planning the franchise’s operational reach.