A wait is over and the rule is out! A law which many of us have been waiting for, in the UAE is finally here. The much-anticipated foreign investment law that will allow foreign investors a 100% ownership of a business without the need for an Emirati sponsor will be in effect soon in the UAE in 2020.
His Highness Sheikh Khalifa bin Zayed Al Nahyan, the President of the UAE approved the new law. This law will take effect from December 1st, and will be applied to a select list of sectors through which the UAE can increase its competitiveness and attract more foreign direct investors.
Foreign shareholders up until now were only allowed to own 49% of an LLC company, as well as have an Emirati sponsor with 51% shareholdings in the company. Today with this new law investors do not require an Emirati sponsor, and can own 100% of a business.
What this would mean for business in the UAE? The countries one of the most attractive market will further attract foreign investors and big conglomerates.
SMEs will also greatly benefit from this new law, as it eases the process of starting a business. In the coming months foreign investors are predicted to flock to Dubai and Abu Dhabi which will further solidify their status as growing international financial centers.
We thank the UAE government for continuing to help ease the way of doing business in the UAE, and allowing full ownership to businesses setting up in the UAE. This definitely triggers a positive effect as it will contribute to job creation, increase productivity and allows for flexibility in setting up a business.
We invite you to share with us what this new law means to you, have you been waiting for it and what will you do now that it’s here.