The most common question we have been asked recently is: “Do I still need a local sponsor and can my company be 100% owned?”
The answer it seems is not very clear cut at this stage. It would appear that the UAE government is constantly working towards improving the competitiveness of the UAE on the global business stage. Enforced local ownership has long been a barrier to entry for many international companies, which has resulted in many of them delaying or cancelling regional expansion plans.
The United Arab Emirates has just become an even more attractive destination for doing business. In May 2018, the first announcement revealed proposed plans to boost foreign investment into the United Arab Emirates. One of the main strategies is to implement 100% foreign ownership for certain business industries and ownership.
The long awaited new Federal Law No. 19 of 2018 Foreign Direct Investment (the FDI Law) announced by his Highness Sheikh Khalifa Bin Zayed Al Nahyan has just been published in the UAE Official Gazette.
There has been much speculation regarding the FDI Law with regards to its content, eligibility and the benefits to foreign investors. The ultimate aim of the FDI Law is to open the UAE mainland market to foreign investors and strengthen its place as the leading foreign investment hub for doing business in the region.