The UAE’s Ministry of Economy has confirmed that the amended legislation permitting foreign investors and entrepreneurs to establish and fully own onshore companies, will come into effect from June 1st, 2021.
The UAE announced in November that foreign nationals would be allowed to own 100% of commercial companies within the country, eliminating the need for a UAE national to hold the majority share. Under new legal amendments, businesses can be fully established by non-Emiratis.
Abdulla bin Touq Al Marri, the Minister of Economy, said: “The amended Commercial Companies Law aims at boosting the country’s competitive edge and is a part of UAE government’s efforts to facilitate doing business.”
The amendments introduced by the new Commercial Companies Law will boost the UAE’s appeal as a destination for both foreign investors, entrepreneurs and talents, the minister added.
It will further strengthen the country’s position as an international economic centre and encourage the flow of investments to the country’s vital economic sectors, he added.
Last month, a senior official confirmed that the UAE’s Ministry of Economy was working on new legislation to include 10 sectors to the commercial companies law.
The legislation, which will enable investors and business in ’10 new sectors of strategic importance’ to come under the purview of the law, is in its final stages of formation.
Faisal Durrani, head of Middle East Research at Knight Frank, commented: “The federal and local governments across the UAE continue to unveil key policy initiatives that will be crucial in helping to create future demand for residential and commercial property across the country. Confirmation of the 100% company foreign ownership law that comes into effect on 1 June will undoubtedly have a significant impact in the medium to long term for demand for office space in key markets such as Dubai and Abu Dhabi that are still experiencing quieter conditions in the aftermath of the global pandemic.
At the smaller end of the business spectrum, fresh initiatives such as ‘Dubai Next’ will certainly help to position cities such as Dubai as an attractive option for global start-ups looking for a dynamic launch location”.
Source: Gulf News
