3 Things You Should Know About 100% Company Ownership in the UAE

company ownership uaeThe UAE government has been involved in economic diversification for quite some time now. Without a doubt, regular rule overhauls have helped the country’s economy grow stronger, increase foreign investment, and move away from its dependence on oil wealth. Setting up a business in the UAE has become easier and more hassle-free over the years, due to the nation’s changing Foreign Direct Investment (FDI) rules that are becoming increasingly foreigner-friendly.

This has been especially true for the Emirate of Dubai which now boasts more than 30 Free Zones. And with the recent declaration of 100% foreign ownership in specific sectors, the entire UAE is aiming to bring bigger and better FDI opportunities to investors from across the globe. Beginning on June 1, 2021, foreigners are allowed to establish their company in the UAE with 100% foreign ownership.

 

Expanding Horizons

The resolution regarding FDI and foreign ownership has changed considerably over the years and has been moving towards the 100% company ownership that is now active. The previous resolution was completely revamped in an attempt to attract even more foreign investors to Dubai and included the following three advantages, in addition to 100% company ownership:

  • No UAE shareholder required

  • Foreign parent companies are no longer required to appoint an onshore UAE agent

  • No additional fees or capital for foreign owners

 

Here’s what we can expect from 100% Company Ownership in the UAE:

  • The rule will help develop the economic sectors. Environmentally-friendly activities like hybrid power plants, solar panels and other green technologies will grow with the aid of overseas investment and talent.

  • As we have seen before, a positive FDI rule always attracts new foreign investors from across the globe who see growth potential in the much sought after Middle Eastern market.

  • This move will also increase global competitiveness. While the law applies to all the Emirates, the local governments can decide the actual foreign ownership percentage, which can be up to 100%. 

 

In conclusion, the new foreign ownership rule will reaffirm the UAE’s global position as an emerging market and a global hub for foreign investment. And along with it, the country is also looking forward to building positive commercial diplomacy with other nations. As for foreign investors interested in setting up a business in the UAE, this is the right time to go ahead with your investment plans. Consult with our experts today for more information.

 

Written by
Adrian Oton
Adrian Oton

CEO, Europe Emirates Group

Economics
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