UAE opens up economy, allows 100% foreign ownership of firmsNovember 24, 2020
By Administrator _India
Foreigners opening a company in the United Arab Emirates no longer need an Emirati shareholder or agent under changes to UAE company law, state news agency WAM reported on Monday.
Until now, companies in the UAE had needed a certain shareholding to be held by Emirati nationals, or an Emirati agent, depending on what type of company it was.
The UAE approved a new foreign investment law in 2018 that would allow foreigners to own up to 100 per cent of some businesses and foreigners could already own up to 100 per cent of those registered in designated business parks known as “free zones”.
As an oil and gas producer, the UAE economy has been hit by the coronavirus pandemic and low oil prices, prompting the International Monetary Fund to forecast in October that the Gulf’s second largest economy could shrink by 6.6 per cent this year.
The dramatic changes come as the UAE has spent billions of dollars preparing to host some 25 million visitors for the World Expo, which was pushed to 2021 due to the pandemic.