UAE’s new Commercial Companies Law: Which businesses can aim for 100% foreign ownership?

UAE’s new Commercial Companies Law: Which businesses can aim for 100% foreign ownership?

Dubai: The immediate focus of the revised UAE’s Commercial Companies Law will be on new businesses being launched in the country through 100 per cent ownership of local operations. The immediate - and biggest – gains should be for tech and digital-focussed businesses that want to set up in the mainland and not have to go through free zones for full ownership. While June 1 has been set as the date for the revised Law to be fully effective, investors and business owners ill need to closely watch for add-on developments. The UAE Cabinet will establish a committee, comprising representatives from each of the Department of Economic Development entities, which will be responsible for determining: * A list of commercial activities considered to have a strategic impact on the UAE’s economy (Strategic Impact List); and * Additional licensing controls to impose on companies undertaking commercial activities in sectors listed in the Strategic Impact List. “The negative list – which will not be abolished even with recent amendments - contain important sectors such oil and gas, telecom and utilities,” said Bahjat Abou Zeyd, Senior Associate – Corporate at the law firm of Abdulla Alawadi & Associates. “[These sectors] will remain subject