This reform will improve the country’s position as an “attractive destination for foreign investors, entrepreneurs and talent”
Foreigners will be able to create and own all of the capital of a company in the United Arab Emirates from June 1, an unprecedented reform intended to improve “the ease of doing business” in this Gulf country, the government announced on Wednesday.
To stimulate investment, the wealthy Gulf state, which includes seven emirates, including Abu Dhabi and Dubai, announced in 2019 the repeal of a decade-old law limiting to 49% the share of capital that can be owned by a stranger.
“Full ownership of businesses by investors and entrepreneurs will be allowed from June 1, 2021,” the government tweeted.
“The amended law on commercial companies aims to strengthen the competitive advantage of the country and is part of the UAE government’s efforts to facilitate doing business,” said Economy Minister Abdullah bin Touq Al. -Husband, quoted by the official WAM news agency.
Thirteen economic sectors are affected by this provision, including renewable energy, agriculture, transport and e-commerce.
This reform will, according to the minister, improve the country’s position as an “attractive destination for foreign investors, entrepreneurs and talents” and strengthen its status as an “international economic center”.
The second largest economy in the Arab world behind Saudi Arabia, the United Arab Emirates also have the most diversified economy in the region, thanks in particular to Dubai, where 95% of its income does not come from the oil industry.
The country is in 16th place in the World Bank’s ease of doing business ranking.
To get around restrictive legislation, several of the seven emirates, especially Dubai, had established free trade zones where foreigners could own 100% of a business.
The Emirates – the top recipients of foreign direct investment in the Arab world – attracted nearly $ 13.8 billion in 2019, according to the United Nations Conference on Trade and Development (UNCTAD).