UAE ALLOW 100% FOREIGN OWNERSHIP COMPANIES TO OPERATE

HomeNewsUAE ALLOW 100% FOREIGN OWNERSHIP COMPANIES TO OPERATE

A law allowing 100% foreign ownership of companies in certain sectors of the economy is now in force in the UAE. Previously, Article 10 of the UAE Commercial Companies Law required that 51% or more of the shares in a company established in the UAE be owned by an UAE national shareholder.

The long-awaited change is designed to make the UAE more attractive to foreign investors but applies only to sectors of the economy that do not appear on a ‘negative list’ established by the UAE Cabinet. The new law does not apply to free economic zones where 100% foreign ownership of companies was already permitted.

The new law is aimed at boosting the UAE’s attractiveness as a target for FDI and increasing investment flows in priority sectors. At the same time, the Abu Dhabi Executive Council has announced that all new economic licenses issued in Abu Dhabi will be exempt from local fees for two years from the date of initial issuance.

Abu Dhabi’s Department of Economic Development (DED) has also issued a resolution to reduce costs for existing businesses in the Emirate – the renewal fee for all current Trade Licences will be fixed at AED 200 per annum for at least two years to come.