We have already discussed the new FDI law in our earlier posts. However, Dubai, Sharjah & Ajman have now brought up a major update, by increasing the number of activities that are allowable in the 100% foreign ownership options.
Dubai, Sharjah & Ajman Department of Economic Development has made 100% Foreign Direct Investment available to over 1000 activities from 1st of June 2021.
This is a welcome move from these emirates. It is now possible to set up a business license in mainland Dubai, Sharjah and Ajman with 100% ownership for a foreign national. This even includes trading, manufacturing, and service activities. Keep in mind that in the case of service activities you would need to have a local service agent. The Local service agent will have no ownership in the company, they will merely be the service agent.
There are also NO additional capital requirements. So this option is not just for the very large businesses, SME’s can also participate in such a business.
It is also possible to amend your existing licenses as well and change the ownership structure to have only foreign owners. This would be treated as any normal share transfer. For this to happen you would obviously have to get the agreement of the UAE national owner (or sponsor’s) confirmation.
This makes investing in the mainland UAE much more attractive. We can expect a lot of businesses to invest in the UAE, and will boost the local economy.