São Paulo – Khalifa bin Zayed Al Nahyan, president of the United Arab Emirates, issued a decree to create a department, within the Ministry of Economy, to manage foreign direct investments (FDIs). The decision was published in the country’s Official Gazette.
According to the website Gulf Business, the decision has been taken while the United Arab Emirates are getting ready to allow foreign investors to hold 100% ownership in some sectors until the end of this year.
The department within the Ministry of Economy will be responsible for proposing policies in the area and setting priorities, planning and programs. It will also create a database of ongoing FDI investments and projects and help turn the business environment investment-friendly, facilitating project registrations and licensing.
One of the concerns of UAE nationals is for the law allowing 100% foreign ownership to affect existing businesses. The new norms haven’t been fully disclosed yet. Currently, foreign ownership is allowed up to 49%, with the exception being the free trade zones.
The Department of Economic Development (DED) reported earlier this month that 100% foreign ownership will only be allowed in strategic sectors. “We are targeting strategic, impactful businesses which will leave their fingerprints on the economy and create a meaningful impact on jobs, technology, and boost imports and exports,” said Fahad Al Gergawi, CEO of the Dubai Investment Development Agency (Dubai FDI).
Translated by Sérgio Kakitani
