In 2020 the shops were shut and nobody knew what was coming. Six years later Dubai has more companies, more residents and more competition than at any point in its history.
For anyone buying or selling a business here, the market of 2026 barely resembles the one that existed before the pandemic. Here's what actually changed.
1. Foreign owners no longer need a local partner
This is the biggest structural change of the six years. Until 2021, foreign investors had to hand at least 51% of an onshore company to a local partner. Since 1 June 2021, 100% foreign ownership has been allowed on the UAE mainland across most sectors, and the local sponsor requirement is gone.
The effect on business sales was immediate. A buyer can now take full ownership of a mainland business outright, rather than structuring around a partner they don't know. Deals became simpler, and a lot of buyers who would previously have looked only at free zones started looking at mainland businesses too.
2. Tax arrived
For decades the UAE had no federal corporate tax. That ended with the 9% corporate tax on profits above AED 375,000, which applies to financial years starting on or after 1 June 2023.
For business sales this changed more than the tax bill. It changed the paperwork. Businesses now file, and buyers now expect to see those filings. The business that trades in cash with no records used to be common and is now much harder to sell, because there is nothing for a buyer to verify.
3. The buyer pool got bigger, and more international
Dubai's growth since 2020 has been extraordinary. The Dubai Chamber of Commerce took in 71,830 new companies in 2025 alone, pushing its active membership to 292,486 by year end, up 13.2% on 2024.
Those new members are overwhelmingly international. In 2025, Indian-owned businesses led with 18,486 new members, followed by Pakistan with 9,138 and Egypt with 5,043, with the UK, Bangladesh and Syria behind them.
For sellers, that means a far deeper buyer pool than in 2020, but also a buyer who often arrives with advisers and asks for documents.
4. New sectors appeared, old ones got crowded
Padel barely existed in Dubai in 2020 and now has clubs across the city, inside hotels, malls and industrial areas. The same goes for reformer Pilates studios, boutique wellness spaces, cloud kitchens, pet services and home care.
At the same time, categories that once sold themselves became crowded. There are far more salons, cafés and small gyms competing for the same customers than there were six years ago. Being open is no longer a selling point in itself.
5. Buyers ask for more than they used to
This is the change sellers feel most. In 2020, a conversation, a rough profit figure and a handshake could carry a deal. In 2026 a serious buyer wants the trade licence, the Ejari, VAT returns, bank statements, the staff list and the lease terms before they make an offer, and their accountant will read them.
Part of that is tax and part is experience. Buyers have been burned, and the market has matured.
What this means if you're selling in 2026
The good news is that there are more buyers in Dubai now than at any point in the last decade, and they can buy your business outright.
The harder news is that they will check. If your books are clean, your lease has time on it and your figures match your filings, you are in a strong position. If they don't, the deal will stall at due diligence, whatever the asking price says.
The businesses that sell quickly in 2026 are not always the most profitable ones. They are the ones where everything the buyer asks for already exists in a folder.
Frequently asked questions
Can a foreigner own 100% of a business in Dubai? Since June 2021, 100% foreign ownership has been permitted on the UAE mainland across most sectors. Some strategic activities remain restricted, so confirm your specific activity with the licensing authority.
Does corporate tax affect buying a business in Dubai? Yes. The 9% corporate tax applies to profits above AED 375,000 for financial years starting on or after 1 June 2023. Buyers now expect to see filed returns as part of due diligence.
Is it harder to sell a business in Dubai now than in 2020? There are more buyers than in 2020, but they ask for more documentation. A business with clean records sells more easily now; one without them sells less easily.
Which sectors have grown most in Dubai since 2020? Padel and boutique fitness, wellness and Pilates studios, cloud kitchens, pet services and home care have all grown sharply, alongside the wider real estate and business services sector.
Thinking of selling?
If you're considering selling your business in Dubai, we can tell you what buyers will ask for and what your business looks like to them.
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