UAE To Allow Full Foreign Ownership Of Firms
05/19/21 AT 11:16 AM
The United Arab Emirates announced Wednesday it will lift a cap on non-local ownership and allow full foreign control of business ventures from June 1,
The reform, originally flagged in 2019, will make it easier to do business in the Gulf state and encourage investment, the economy ministry said. The amended Commercial Companies Law aims at boosting the country s competitive edge and is a part of UAE government efforts to facilitate doing business, said Economy Minister Abdulla bin Touq al-Marri.
The decision abolishes a longstanding law that limits foreign ownership to just 49 percent.
Dubai: Today, the UAE s Ministry of Economy announced that the amended Commercial Companies Law will come into effect on June 1, 2021, allowing foreign investors and entrepreneurs to establish and fully own onshore companies.
But what does the law mean for business owners and entrepreneurs and when will the changes come into effect? Here is all you need to know.
Hani Naja, Partner Corporate and Commercial at Baker McKenzie Habib Al Mulla, spoke to Gulf News about the new law and the changes that had already been implemented over the years, leading up to the recent announcement.
“The push for a relaxation in foreign direct investment in the UAE started a number of years ago. The first major change was in September 2018, with the issuance of the Foreign Direct Investment Law (FDI Law), which opened up the UAE market to foreign investors in certain sectors of the economy. The FDI law was then followed by the announcement on July 2019 of a Positive List of 122 business activities w
UAE will allow full foreign ownership of firms beginning June 1
World
Burj Al Arab (left). File photo
The cap on non-local ownership will be lifted in the United Arab Emirates and full foreign control of business ventures will be allowed from June 1, the Gulf state announced Wednesday.
The reform, originally flagged in 2019, will make it easier to do business in the Gulf state and encourage investment, the economy ministry said. The amended Commercial Companies Law aims at boosting the country s competitive edge and is a part of UAE government efforts to facilitate doing business, said Economy Minister Abdulla bin Touq al-Marri.
UAE to allow ‘full foreign ownership’ of companies in June
The amended Commercial Companies Law aims at boosting the country s competitive edge
Reuters
May 19, 2021
PHOTO: REUTERS
Foreigners opening a company in the United Arab Emirates will no longer need an Emirati shareholder or agent under changes to UAE company law that will go into effect on June 1, state news agency WAM reported on Wednesday. The amended Commercial Companies Law aims at boosting the country s competitive edge and is a part of UAE government efforts to facilitate doing business, Minister of Economy Abdulla bin Touq Al Marri was quoted as saying.
Effective June 1st, UAE Commercial Companies Law allows 100% Foreign Ownership
May 19, 2021
United Arab Emirates, UAE: Downtown of Dubai in the sunset
UAE Ministry of Economy announced that the amended Commercial Companies Law will come into effect on June 1st, 2021, allowing foreign investors and entrepreneurs to establish and fully own onshore companies.
The UAE government has recently adopted an amendment to the Commercial Companies Law allowing 100 percent foreign ownership of companies.
Abdulla bin Touq Al Marri, Minister of Economy, said, “The amended Commercial Companies Law aims at boosting the country’s competitive edge and is a part of UAE government efforts to facilitate doing business.”