According to a report by the Dubai Chamber of Commerce and Industry, a proposal to amend the regulation regarding 51 to 49 percent of Company ownerships will go a long way in helping to attract more foreign investments, thereby supporting UAE’s recovery.
The report by Dubai Chamber indicates that the UAE Government is initiating plans to make the country more attractive for foreign investments during the time of global economic instability.
The government intends to issue a revised company, industry and investment law to significantly change the business landscape within the country. The revised laws are in final stages of being approved currently, and once approved, they are hoped to make it easier for foreign investors to carry on their businesses in the country, as the law would offer maximum protection for their investments.
As per the Economic Freedom Index report for 2010, conducted by the Heritage Foundation, the ease of conducting business in the UAE has improved, which indicates a positive note and overall increase in risk appetite. The index marked 67.3 out of 100 for Uae, making its economy as the 46th freest economy.
To establish a business which sells products or services freely throughout the UAE in non-Free Trade Zone areas, atleast 51 percent of the buisness should be owned by a UAE national, according to the law.
This type of partnership is considered the best way to establish business in the UAE. All businesses require a license and licensing procedures vary from one emirate to another.
The report appreciated the effort by the UAE Government, stating that by recognizing the importance of business reforms, particularly geared for private sector, the Government has improved the country’s business competitiveness.
This has laid the base for future job creation, increased firm revenue and in-turn overall business growth during the coming years, the report said.
The financial sector in the UAE has become more efficient and competitive in recent years, backed by solid, rational, financial regulation. The domestic banks offer a range of services and Islamic banking is getting more prominent. The capital markets are comparatively well-developed and the Dubai Financial Market and Abu Dhabi Stock Exchange have become more attractive to foreign investment over the years.
The emirate’s exports and re-exports have been on the rise, backed by huge foreign trade network, while the UAE has improved in its ranking in the 2010 Economic Freedom Index. The exports by Dubai grew 9.3 percent touching Dh.40.9bn during the fourth quarter of 2009 from Dh.37.6bn during the previous quarter, reported the Dubai Chamber.
Posted on 1/2/2010 Social Bookmarking
     
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