In major shift UAE‘s Investments law allowing 100% ownership to foreign investors in specific activities. Sultan Al Mansoori who is an economic Minister confirmed the plans during his interview with “The National”
As per the new rule reported by the state which allows non- Emiratis to control a company entirely with residency along up to 10 years to professional specialists in medical, scientific, research and technical fields covering merit students and investors.
In present scenario, Its mandatory for foreign companies to operate in the UAE by partnering with the local entity unless they are based in certain free zones which are the reason why foreign business community is warmly welcoming this new investment law.
Above law initiated as new regulation for incubators and business accelerators. The incubators will serve range of services covering workspace for entrepreneur’s guidance on project developments and innovations aiming GDP from 40% in 2017 to 45% by 2021.
Considering the challenges on the foreign investor to create a promising environment for their startups this decision is coming as great initiative to create an ecosystem that how entrepreneurs could sustain their businesses for years together and gradually can take them to promising heights.
100% foreign ownership falls applicable to key sectors chosen by the government which includes in the manufacturing and service sectors. Many Scientists, developers and innovators are expected to benefit from the plans.
Additionally as a new initiative, Dubai government has introduced sustainability center recently where by an entrepreneur can register company on desk space thus reducing significant amount of rental expenses. This clearly shows that government pay great efforts introducing these policies to economic activities boosting investments and putting in place a frame work to future developments.
Mr. Hamad Bu Amim, CEO and President of Dubai Chamber of Commerce and Industry mentioned that the decision reflects the wise vision of the leadership and strong commitment resulting stimulating the economy and adapting to the needs of fast growing world. (Reference through Local Newspaper). The law is expected to be implemented soon before the end of this year attracting foreign direct investments into different business sectors especially into the non – oil sectors.