« Back to Glossary IndexHolding Company
A holding company is a business entity that owns shares in other companies but does not engage in direct commercial activities or operations. In the UAE, holding companies can be established under mainland regulations (UAE Commercial Companies Law) or in free zones such as DIFC, ADGM, and RAK ICC, which offer specialized structures for asset protection and investment management. Holding companies are commonly used for real estate ownership, intellectual property management, and subsidiary control, allowing businesses to centralize corporate governance. Certain sectors, such as banking and insurance, require regulatory approvals before forming a holding company.
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