UAE opens up the economy, allows 100% foreign ownership of Companies
With an an economy recovering from a global pandemic and declining oil prices, the United Arab Emirates’ Government resolution under the guidance of President His Highness Sheikh Khalifa bin Zayed Al Nahyan has been a major welcoming move. The cabinet issued a decree that foreign investors can fully own local commercial companies without the need for an Emirati sponsor as part of the government’s ongoing efforts to ensure a conducive environment for business and open up economy to all nationalities.
The reform allowing foreign investors 100% ownership of businesses will take effect from December 1, 2020.
Until now, companies in the UAE needed Emirati nationals, or an Emirati agent as a sponsor or a partner, depending on what type of company it was. Now, under the new amendments, businesses can be fully established by non-Emiratis of all nationalities, with companies now having a maximum of one year to comply with the amended law from the time its articles become effective. The decree, in addition, supersedes the UAE Federal Law No. 19 of 2018 on Foreign Direct Investment (FDI Law).
UAE Cabinet Resolution determined the Positive List of sectors and economic activities in which the foreign direct investment law is permissible and the percentage of ownership is 100% in companies outside free zones.
Find Positive List of sectors and economic activities in which the foreign direct investment law is permissible below. This will help you in navigation for your company setup or start up related queries. In case you need more assistance in company setup services or want to know more about foreign direct investment UAE then you can call us on +9715 010 42665 or email us at firstname.lastname@example.org . Happy to help!
Official Cabinet Resolution UAE opens up the economy, allows 100% foreign ownership of companies