The UAE government is laying down the law that will allow up to 100% ownership of businesses by foreigners in the maritime industry per specific criteria, Infrastructure and Development Minister Abdullah Al Nuaimi said in Abu Dhabi.
This law will most probably be passed within the first half of 2020 and will also discuss the issues ranging from vessel ownership to dispute resolution, according to the chairman of the UAE Federal Transport Authority.
A total of 122 economic and business activities across 13 sectors were defined by the new legislation to be eligible for up to 100 % foreign ownership.
The specified sectors include renewable energy, space, agriculture, and manufacturing industry.
The new law was made possible by a cabinet meeting held on July 2, 2019, in which the cabinet decided that each of the country’s 7 emirates will be allowed to set foreign ownership limits in various sectors.
What it means is that these new rules will basically lift the federal ban that has been long since in place. The ban capped foreign ownership in local companies at a mere 49%. Thus, discouraging international investment in the UAE.
Consequently, this change frees the country’s seven emirates to open up their industries to foreign investors and engage in international trade, many of those demand complete control over their business operations. Hence boosting business in the UAE.
Economic free trade zones mushroomed all across Dubai and the rest of the UAE as a way to entice international companies to invest in the region as these zones offered a hundred percent ownership to them.
At KWS Middle East, we offer unparalleled consultancy. Our elite team of skilled professionals will take care of the Business incorporation process from start to finish.
Hire us to have a dreamlike business set-up experience. We handle all your worries so that you can channel your energy into one thing: Building your business.
Contact us today to book your free consultation call!
Drop your query at firstname.lastname@example.org