News: Legislative framework for the free economic zone of Abu Dhabi (the UAE) is being developed

Global market of Abu Dhabi attracts more and more representatives of international business. Declaring itself as the new financial center of the UAE, this free economic zone now has a full-fledged legal framework that provides for many aspects of activities including offshore ones. So far only in the form of a bill, the material was published on January 7, 2015.

Due to the measures taken, as planned, the main goal of the founders of the Global Market will be achieved: Abu Dhabi will become a center of financial services for predominantly foreign clients. They will be entrepreneurs, owners of companies that use banking services for effective capital management and disposal of assets.

What will foreign firms get

The company that will take advantage of the opportunities of the free economic zone of Abu Dhabi in the Emirates will have the following benefits:

• guaranteed exemption from tax burden for up to 50 years;
• relaxation in the requirements for repatriation of profits;
• ability to exercise the right to full foreign ownership.

Open consultations held by the Global Market already have their practical results. Legislative bases of activity of the companies in the free zone are developed. There are such aspects as employment and operating rules. 16 international financial institutions delegated their representatives to meet with the founders of the Global Market. Various fields of the economy were represented. Each participant could comment on any issue under consideration.

The Chairman of the Global Market in Abu Dhabi noted the fact that businessmen can not doubt the reliability of the legal system of the free zone. The developed and adopted legislative framework meets international standards, which relate to the sphere of financial services. Recommendations not only of the financial institutions of the UAE have been taken into account. Opinions of the representatives of influential world capital markets were also considered. Comments, as well as pertinent proposals are still being accepted, because there is still time before the law is adopted. Acceptance of applications for licenses has already begun.

After the completion of the preparatory phase, it is planned to continue cooperation and conducting comprehensive consultations. Due to this, the legal norms of the new law will take into account all the changes taking place in the sphere of financial services at the world level. The focus on risks is, according to the founders, the guarantee of effective work in the conditions of constant changes in market needs, when the reaction should be instant.