São Paulo – The United Arab Emirates chose to allow foreign investors 100% ownership of businesses in the country. Effective December 1st, 2020, the new law will overrule a former requirement of sponsorship by or partnership with an Emirati citizen.
President Khalifa Bin Zayed Al Nahyan made changes to Commercial Companies Law No. 2 of 2015 in a bid to improve competitiveness and investment attraction.
Gulf News reported that the 2015 law limited foreign ownership to a maximum of 49%, with the remaining 51% retained by an Emirati individual or 100% Emirati-owned company.
That has changed with Cabinet Resolution No. 16 of 2020. A list has been made available of industries and activities eligible for 100% foreign ownership, including wheat, maize, barley, legume, sugarcane and flower farming. Manufacturing activities including foods, with the exception of bakery, dairy, and animal feed items.
According to Gulf News, the new law does not apply to business excluded as per the Cabinet Resolution, or to those fully owned by federal or local governments or their subsidiaries.
Translated by Gabriel Pomerancblum
