The new rules essentially lift a federal requirement that has long capped foreign ownership in local companies at 49 per cent.
Wednesday 03, July 2019
The UAE will allow foreigners to own 100 per cent of businesses across industries as the Arab world’s second-largest economy courts investors, reported Bloomberg.
Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, said that federal government will leave it up to individual sheikdoms to decide the ownership percentage in each activity according to their circumstances, adding that the UAE seeks to open new economic sectors and attract new foreign investors.
The change frees the country’s seven emirates to open their industries to foreign investors, many of whom demand full control over their operations. Economic free zones sprang up across Dubai and much of the UAE as a way to satisfy foreign companies that could not fully own businesses onshore.
“This is a further measure to liberalise and strengthen the investment environment and will be a critical step in the development of new sectors and industries, a key objective will likely be areas linked to technologies and ones that will support job creation,” said Monica Malik, Chief Economist at Abu Dhabi Commercial Bank.
Full foreign ownership will be allowed in many industries including e-commerce, agriculture as well as renewable energy, entertainment, transport and construction.