The Chinese President Xi Jinping’s recent visit to UAE is set to make gradual, yet large economic change in UAE. Both countries spoke about boosting different industries and have made 13 strategic agreements. These agreements include construction of embassies and cultural centers, advancing energy cooperation, e-commerce ties, numerous investments, and the infamous Belt and Road Initiative all of which the UAE government strongly supports, and would bring an inflow of income into the UAE.

UAE’s most recent investment law has become the talk of the town as it opens up business regulations further and allows 100 percent ownership to foreign investors in certain onshore business sectors. This law is currently awaiting the FNC’s approval and is planned to be introduced in the last quarter of this year.

UAE has taken numerous steps recently for ease of business, by reducing visa requirements for businesses hiring expatriate employees. This not only cuts down on any additional expenses to hire an employee for a business but also increases bureaucratic efficiency.

UAE’s dependence in the oil sector leads to instability in its economy. To counter this instability, AED is pegged to the US dollar to avoid stark fluctuations in the exchange rate, which directly affects UAE’s economy.

US GAAP:
Generally Accepted Accounting Principles, also called GAAP or US GAAP, are the set of accounting standards or principles adopted by the U.S. Securities and Exchange Commission.

Onshore/ Commercial Company:

Mainland companies are regulated by the UAE legal structure and government policies and are located within the limitation of commercialized geographical areas falling under the jurisdiction of the Emirates government.

The main feature of an onshore company registered outside FTZ is partial ownership of a foreign entity, at least 51 % shall belong to a citizen of the United Arab Emirates. And as a rule, an additional agreement is signed with him that actually he does not own shares of such company, except in the following cases:

• Activities with 100% GCC ownership Businesses located in the Free Zones
• Instances where GCC companies (wholly owned) enter into a partnership with UAE national
• Where the law requires 100% local ownership.

Commercial companies and Establishments (Onshore) can be of following types:

1. Individual Establishment (UAE national or GCC national)
2. Civil Companies
3. General Partnership
4. Limited Partnership
5. Private Shareholding Company
6. Public Shareholding Company
7. Joint Venture Companies
8. Partnership Limited with Shares
9. Limited Liability Companies (LLC)
10. Foreign Companies (Branch / Representative office)