As per this new law, it will allow for foreign investors to set up a business in the UAE mainland with 100% ownership, for a positive list of 122 activities.
This means a foreign business owner does not need a UAE National (or local sponsor) as 51% owner of the company.
Even existing companies that were incorporated before the implementation of this law, can change their ownership structure to 100% FDI in UAE.
The UAE’s Ministry of Economy has now announced that this new law will come into effect on June 1st 2021.
The Ministry has also confirmed that they intend to add 10 more sectors to the positive list of activities.
We have already discussed earlier on how UAE is an attractive place to invest, and has great strategic importance. This law coming into effect will be like a cherry on the cake. This increase in FDI, will also boost UAE’s economic growth.
Did you know that giving gifts or free samples in the UAE can be taxable?
When advising clients on setting up a business in the UAE mainland, one of the most commonly asked questions is what are the compliance requirements