Technically this is not possible, but an Offshore company can be a shareholder of any UAE Mainland and/or Free Zone companies. This in fact permits it to engage with the UAE market and undertake business activities through a subsidiary company. But as per the law, an Offshore company cannot do business in the UAE if it:
- uses legal, accounting, auditing, management consultancy and similar services of those who are based in the UAE;
- prepares and maintains books and records within the UAE;
- holds meetings of its directors or members within the UAE;
- leases a property to use as a registered office or owns a property on any free hold areas, where foreigners are allowed to own a property;
- holds a bank account in UAE banks for the purpose of conducting its routine operational transactions