Date added: : 30.08.2019

The United Arab Emirates is interested in increasing the flow of investment. The government has passed a law that allows 100% ownership of the company for foreign investors. According to experts' expectations, this will really improve the economic climate in the country, and the increase in foreign direct investment can reach 15%

What has changed?

Earlier in the United Arab Emirates, regulations were in force that prohibited foreign investors from 100% ownership of companies operating in a number of industries. In particular, we are talking about green energy, space exploration, agriculture, hotel and restaurant business, etc. Now foreign business can enter the country and not seek partners with UAE citizenship, but develop its own company.

However, one nuance should be noted. The government delegated the right of decision to the governments of the emirates. Therefore, each region of the UAE can independently determine the share of foreign investment in the business. Therefore, it is possible that in some emirates, you will have to look for a local partner who will participate in business development.

Also, turnover limits have been set for some areas. 100% ownership in the construction industry, for example, is only possible if the turnover does not exceed 110 million euros.

What will the novation lead to?

Expectations from the reform are positive. In particular, a business receives some privileges. For example, companies have the opportunity to trade duty-free with other Gulf states, there will be significantly fewer problems with the bureaucracy, the need for a long search for a partner with a local passport will disappear. Thus, if the authorities of the emirates do not block the reform, the influx of investments may exceed the expected 15%.

The novelties are only taking effect, so now it’s the time to open your own business in the United Arab Emirates. If you are ready to do this, Law&Trust offers its services. Our representatives will take over the cooperation with government agencies, help you choose your preferred taxation system and take all necessary measures so that you can start your business there as soon as possible.