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Back to Local News listNew foreign ownership law expected
The UAE will review rules governing foreign ownership of companies in the next month and implement a new law by the end of this year, economy minister Sultan bin Saeed Al Mansouri said yesterday.
“The law should be submitted to the cabinet within a month,” he told Reuters. “Our expectation is that the law would come out by 2010.”
Under current regulations, business owners from all nationalities except from within the GCC must have a local majority partner.
Exceptions apply in free zones such as Dubai Internet City, where 100 per cent foreign ownership is allowed.
The new regulations have been in the pipeline for several years and are aimed at increasing foreign investment as restrictions on full ownership were considered a key reason for holding back investment and stifling competition.
Al Mansouri said in September the law was in its final stages and would include a rule stipulating a minimum capital of dhs200 to 300 million.
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COMMENTS
In most countries, what create wealth is middle class and start up companies. Big corporations can contribute but it will take them longer to make a business plan and decide to invest in UAE. This law is a good step forward but doubt that it will help short term. What UAE needs is effective measures that could generate immediately cash influx and create jobs. UAE can start by sorting the property market issues and give a strong signal to investors to come back. This implies the long waited Strata law full implementaion. The last Year more than USD 50 Bls were invested in different countries and UAE ws not in the list.
Posted by: Btof [10.Mar.10 6 : 16 AM]KEEP YOURSELF UPDATED
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