UAE likely to grant 100 percent business ownerships

Foreigners in the UAE can shortly expect 100 percent ownership of businesses located outside the economic free zones of the nation. This is likely as per the more liberalized rules that the Dubai officials are promoting to boost foreign investments, and tackle the financial slowdown.

According to top officials in the Dubai government, all seven emirates are now considering the possible benefits and cost factors of such a step.

The Deputy Director General for Economic and Sector Development, Khalid Al Kassim, it is in the best interest of the UAE to ease restrictions that currently stop foreigners from owning the majority of any business outside a free zone.

“We are striving to push 100 percent ownership for the whole country, but Dubai alone cannot do it,” he said during a business meeting organized by the Dubai Economic Department and the Italian Business Council of Dubai and Northern Emirates.

The UAE has 30 free zones with foreigners as the sole owners of a business. Else, an overseas firm can establish presence in the UAE by establishing a branch or forming a company wherein a local sponsor owns atleast 51 percent.

AT present, the current regulations are being examined and the federal government will soon introduce new regulations aimed to attract more investors, Al Kassim agreed.

An exact time frame for approval of the new rules is yet to be out. According to the Chief Economist at DIFC, Dr. Nasser Saidi, such a change apart from attracting considerable new foreign direct investment in the UAE will also help generate jobs.

“We are considering revision of regulations. The laws will be made flexible, as per the requirements of the business community,” Kassim confirmed.

Officials are also considering cheaper means of doing business for foreigners, as another strategy for promoting foreign investments.

Posted on 18/5/2009

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