‘UAE opens up its economy to all the Nationalities’
‘Majority Emirati Shareholder Requirement Removed’
UAE has been venturing in its Foreign Direct Investment Policy to ensure economic growth and encourage foreign investments; this is evidenced by the recently issued resolution. Taking immediate effect from 1st of December, 2020, the UAE has amended its Commercial Company Law which mandated the 51% shareholdings of companies to be owned by UAE nationals. Under the new amendments, mainland companies can now be established by foreign nationals without Local Partnership and retain 100% ownership in the business.
The amended resolution determines the followings:
- ‘Positive List’ of sectors and economic activities where foreign investors are allowed to take full ownership of the business. As per the decree, 122 economic activities are qualified for 100% ownership by expats. These economic activities run across 3 sectors;
- Services sectors; education, healthcare, food and hospitality etc.
- Minimum Capital is prescribed.
- Involvement of the UAE nationals in the FDI related companies will be regulated by the concerned authorities.
The changes made to the FDI policy are expected to benefit the foreign investors and the country in the following ways:
- Increase the flow of foreign investments
- Boost the UAE economy
- Wide range of investment opportunities
- Friendly investment policy that caters full ownership over the business.
Structured and precise details on the said amendment are yet to be known. Stay with us for any updates on the FDI policy. If you would like to know more on this update and how it might affect your business, Contact Us.