UAE mulls change in ownership rules to boost foreign investment
Legislation is likely to be submitted to the UAE cabinet, within two months, permitting change in ownership rules for firms established in the UAE by foreigners.
As per the initiative, international companies will be allowed to hold 100 percent ownership of businesses established by them in the UAE.
Currently, foreigners need to have a UAE national as a sponsor, and are limited to a maximum of 49 percent stake, except in free zones. The Minister of Economy, Sultan al Mansouri, noted that there are several industries are yearning to move into UAE from across the world, provided, there are certain terms that they wish to see in the industrial law. The law to permit 100 percent foreign investment is ready, and will be finalized in next two months.
The Ministry is particularly focusing on sectors such as hi-tech and hi-value. The move when implemented, will make way for technology firms to make huge capital investments in the UAE, and in the longer-term diversify the economy away from its present, over reliance on hydrocarbon revenues, he revealed.
The Cabinet is also considering increasing the foreign ownership ceiling from the present 49 percent, Mansouri said.
This move is mainly aimed to boost foreign investment, and create the right environment to ensure everything is well-planned and studies first, he said.
Posted on 18/9/2009
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