This article has been researched and written by Rawan El Khalil and the team at Creation Business Consultants and has not used AI in generating this article.
It has become easier and more attractive for foreign investors, individuals, or entities to establish a 100% foreign-owned corporate presence in the UAE. Recent changes in the law have facilitated the establishment of companies by foreign investors without the need for a UAE local sponsor or a local service agent, enabling complete ownership and control.
UNLOCKING INVESTMENT OPPORTUNITIES: UAE FDI LAW & 100% FOREIGN OWNERSHIP
The Foreign Direct Investment (Federal Law 19 of 2018) was initially established with the aim of facilitating and attracting FDI in the UAE. It was later augmented by Cabinet Resolution No. 16 of 2020 on March 17, 2020, which further relaxed foreign ownership restrictions in various business sectors, particularly in manufacturing, agriculture, and services categories. This resolution introduced the FDI Positive List. The Departments of Economic Development in Abu Dhabi and Dubai have identified over 1,100 plus commercial and industrial activities that allow investors to have 100% foreign ownership. Additionally, a foreign Limited Liability Company (LLC) can conduct the activities listed in its license in the respective Emirate and outside the UAE, making it a common choice for commercial licenses that enable both local and international trade.