« Back to Glossary Index
Equity represents ownership interest in a company, often in the form of shares, and determines shareholder rights, profit distribution, and voting power. In the UAE, mainland companies must have at least 51% local ownership, unless they qualify for 100% foreign ownership under Cabinet Decision No. 16 of 2020. However, free zone companies can be fully foreign-owned within designated economic zones. Equity financing, including private equity (PE) and venture capital (VC) investments, is gaining traction in the UAE, particularly in fintech, real estate, and technology sectors. Investors must comply with UAE securities regulations when issuing or trading equity in public and private companies.
« Back to Main Glossary Disclaimer
The opinions expressed in this blog are those of the respective authors. ATB Legal does not endorse these opinions. While we make every effort to ensure the factual accuracy of the information provided in our blogs, inaccuracies may occur due to changes in the legislative landscape or human errors. It is important to note that ATB Legal does not assume any responsibility for actions taken based on the information presented in these blogs. We strongly recommend taking professional advise to ensure the best possible solution for your individual circumstances.
About ATB Legal
ATB Legal is a full-service legal consultancy in the UAE providing services in dispute resolution (DIFC Courts, ADGM Courts, mainland litigation management and Arbitrations), corporate and commercial matters, IP, business set up and UAE taxation. We also have a personal law department providing advice on marriage, divorce and wills & estate planning for expats.
Please feel free to reach out to us at office@atblegal.com for a non-obligatory initial consultation.
