UAE Commercial Companies Law Allows Full Foreign Ownership
The UAE Ministry of Economy announced that the amended Commercial Companies Law will come into effect on June 1, allowing foreign investors and entrepreneurs to establish and fully own onshore companies.
The
government had recently approved the amendment of the Commercial Companies Law,
abolishing the mandatory requirement of having the Local Service Agent, aiming
to enhance the resilience of the national economy and supporting it.
It
will also increase the attractiveness of the investment environment in the
country through openness and flexibility in legislation to provide an economic
climate in accordance with the best investment trends and practices and in line
with the country's goals for the next 50 years.
Minister
of Economy Abdulla bin Touq al-Marri explained that the amended Commercial
Companies Law aims at boosting the country’s competitive edge and is a part of
UAE government efforts to facilitate doing business.
Bin
Touq added that the amendments introduced by the new law will boost the UAE’s
appeal as an attractive destination for both foreign investors, entrepreneurs,
and talents. It will further strengthen the country’s position as an
international economic hub and encourage the flow of investments to the
country’s vital economic sectors.
UAE
realizes the importance of encouraging investors and entrepreneurs, said the
minister, adding that they have a pivotal role in achieving economic
development.
“We are keen to provide an integrated
and flexible investment environment that enables them to implement projects
that support the national economy.”
The
Commercial Companies Law supports facilitating the establishment of business
activities in the UAE, attracting foreign direct investment to the various
vital sectors in the country.
It also helps develop and establish new quality projects, diversify the economy and increase its productivity, support innovation, research, and development capabilities, and attract talents and competencies.
