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28 April, 2021

UAE Government to add 10 New Sectors Under 100% Foreign Ownership

According to the UAE Ministry of Economy, there will soon be 10 new sectors that will come under the purview of the 100% foreign ownership law.

In November 2020, a Presidential decree was issued in the UAE, allowing amendment to the commercial companies’ law of UAE. This allowed 100% foreign ownership of companies in UAE, as long as the companies belonged to a specific list of sectors, operated within a list of activities and met few other conditions.

This month the UAE Ministry of Economy, represented by its Undersecretary Abdulla Al Saleh, announced that there would soon be 10 new sectors added to the 100% foreign ownership law. The law currently allowed companies in 13 sectors to enjoy the foreign ownership, subject to meeting other conditions as stipulated.

The move came during the economic challenges faced at the time of the global pandemic and reinforced the faith in the UAE Government among all stakeholders, particularly business owners, entrepreneurs and corporate service providers. The legislation also strengthened the vision of the UAE Government authorities in establishing the country as a stronghold for economic growth and sustenance.

The announcement specifically targeted the increase in UAE’s global competitiveness and enhancement of business performance. The amendment is expected to provide relief to local as well as foreign investors.

In addition, the Undersecretary added that a new industrial law would be brought into effect.

The new law would be aimed at providing a lucrative environment for industry to thrive in the UAE. Fahad Al Gergawi of the Dubai Investment Development Agency added that this amendment would help foster innovation, adopt cutting-edge technology and therefore drive productivity, growth and sustenance.

The new laws are also expected to boost the economy through job creation.

 

Source: khaleejtimes

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