Equity
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.
