This month marks the start of a new era for the United Arab Emirates. From now on, foreign investors of any nationality will be allowed to own 100 percent of the shares of a mainland company. They will be able to establish their company anywhere in the UAE, without the need for a local partner to hold 51 percent of its shares.
There will be just a few exceptions to the rule, in areas deemed of strategic national interest.
Sectors that could be major beneficiaries of the rule change include contracting; vehicle, food, chemicals, electronics and textile trading; and food, garment, construction materials, cosmetics, electronics and equipment manufacturing and production.
This big change in the country’s corporate ownership laws will undoubtedly grab investor attention at a time when countries are competing hard for investment as they seek to kickstart post-pandemic recovery. Global foreign direct investment (FDI) fell 42 percent year on year in 2020, to an estimated US $859 billion. With...read more...