Dubai Holding Companies: Structure, Benefits & How to Set One Up

Thinking about starting a holding company in Dubai? Whether you’re an investor, entrepreneur, or family office, Dubai offers strategic advantages for holding company structures tax benefits, global connectivity, and a strong legal framework.

In this guide, we’ll break down what a holding company is, why Dubai is a popular destination for them, and how to legally set one up.

What Is a Holding Company?

A holding company is a legal entity that owns shares in other companies but doesn’t directly conduct commercial activities like selling products or offering services.

It exists to:

• Control subsidiary companies

• Own intellectual property, assets, or real estate

• Manage risks and centralize decision-making

• Structure family or investment wealth across entities

Why Dubai Is Ideal for Holding Companies

Dubai is home to many well-established holding firms, including Dubai Holding, Meraas, and TECOM Group. The emirate offers:

✅ 100% foreign ownership in Free Zones and many mainland sectors
✅ 0% personal and capital gains tax
✅ Global banking infrastructure
✅ Strategic location for regional and international control
✅ Legal clarity under UAE Commercial Companies Law

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Types of Holding Companies in Dubai

There are two main ways to set up a holding company in Dubai:

1. Mainland Holding Company

• Licensed by the Dubai Department of Economy and Tourism (DET)

• Can own local and international subsidiaries

• Requires a physical office (virtual offices not permitted)

2. Free Zone Holding Company

• Popular zones: Dubai Multi Commodities Centre (DMCC), Jebel Ali Free Zone (JAFZA), Dubai Silicon Oasis (DSO)

• Offers 100% foreign ownership and zero income tax

• No customs duty for intra-free zone operations

Some Free Zones (like DMCC) allow you to form a company with a specific “Holding Company” activity, making compliance easier.

🧠 Key Advantages of a Dubai Holding Company

✅ Asset Protection: Shield valuable assets like IP, shares, or real estate

✅ Business Consolidation: Manage diverse subsidiaries under one legal umbrella

✅ Succession Planning: Ideal for family offices or legacy businesses

✅ Tax Efficiency: Benefit from UAE’s corporate tax system (currently 9% with exemptions for many holding activities)

✅ Ease of Global Expansion: Own or partner with companies across borders

How to Set Up a Holding Company in Dubai

Costs of Setting Up a Holding Company

Price mention below are not actual price, please contact us for actual price. 

💡 Tip: Some Free Zones offer zero visa holding companies great for asset-only structures.

Notable Holding Companies in Dubai

Here are a few recognized names:

• Dubai Holding: Parent company of TECOM Group, Jumeirah Group, and others

• Investment Corporation of Dubai (ICD): Manages assets for the Government of Dubai

• Meraas Holding: Active in real estate, hospitality, and lifestyle sectors

• Emaar Properties: Though technically an operating company, it has multiple subsidiaries under its structure

Can a holding company in Dubai generate income?
Indirectly yes. Through dividends, returns on investments, or rent from owned assets.

Do holding companies pay corporate tax in UAE?
As of 2023, UAE applies a 9% corporate tax. However, passive income (like dividends and capital gains) from subsidiaries is often exempt, especially in Free Zones.

Can I use a holding company for real estate investments?
Absolutely. Many investors use holding companies to own and manage real estate portfolios.