UAE Cabinet approves to allow 100% foreign ownership in UAE.
The UAE Cabinet has endorsed earlier comments by the minister of economy in April 2018 stating that a long-awaited investment law allowing 100 per cent foreign ownership of companies would be ready by year-end.
This change in investment law will be a game changer in UAE Economy and expected to boost the country’s economic competitiveness.
“The UAE will remain a global incubator for exceptional talents and a permanent destination for international investors. Our open environment, tolerant values, infrastructure and flexible legislation are the best plan to attract global investment and exceptional talents in the UAE,” Sheikh Mohammed said.
As of now, foreign companies can only operate in the UAE by partnering with a UAE National or unless they are based in certain free zones but have limited scope.
Economy minister Sultan Al Mansoori said in April that the investment law would be ready by 4th quarter of 2018. It is expected the law will be applicable to key sectors chosen by the government including manufacturing and service industries. Other sector may also benefit from the law are Property developers and investors after a recent slump in the market.