The new law will open the economy to global businesses and investors in an unprecedented way.
Inayat-ur-Rahman, Deputy Business Editor
President His Highness Sheikh Khalifa Bin Zayed Al Nahyan has issued a decree overhauling foreign ownership rules of commercial companies.
The first of a kind in the GCC region, the 100% ownership of the business in the UAE will boost FDI, investment flows, recoup the economy affected by the COVID-19. The bold step will also greatly encourage entrepreneurs to start new ventures and expand locally, regionally and globally.
By revamping the foreign-ownership laws, the UAE has taken a giant leap towards economic diversification. Kudos to the UAE leadership for this monumental decision . This is indeed the most pragmatic way to develop the country organically and inorganically, and broadcast the image of openness, ease and flexibility to the investor world. This move will elevate UAE’s position in the Ease-of-Doing-Business index by several notches. The decision will undoubtedly attract and welcome new and large investment in the country.
This move will make the UAE an even more attractive investment destination and commercial hub for international entrepreneurs and investors. It will also result in increased accountability and focus on business growth, rather than a diversion of energies towards internal stakeholder management.
Mohamed Juma Al Musharrkh, CEO of the Sharjah FDI Office (Invest in Sharjah) told Gulf Today that the issuance of the new decree to revamp the UAE Federal Law No. 2 of 2015 on Commercial Companies, which now allows foreign nationals 100% ownership of their onshore companies in the UAE, thereby invalidating the law’s earlier requirement of a major Emirati shareholder in these companies is a strong sign of a forward-thinking leadership.
Noting that the decree was aligned with the latest global FDI trends, he said it opened the local economy to global businesses and investors in an unprecedented way, and will offer a major boost to attracting foreign capital into the UAE economy amid the challenges posed by the coronavirus (COVID-19) crisis.
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Brent crude futures climbed 19 cents, or 0.3%, to $56.10 a barrel while US West Texas Intermediate (WTI) crude futures rose 20 cents, or 0.4%, to $52.81 a barrel.
Spot gold was down 0.1% to $1,849.16 per ounce while US gold futures eased 0.2% to $1,847.50.
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