The UAE government is set to allow foreign investors to possess sole ownership of local businesses as part of sweeping reforms to boost foreign direct investment. In addition, the government will grant ten-year visas to expatriates.
Current law in the UAE permits foreigners to own a maximum stake of 49% in local companies and requires them to sign partnerships with Emirati stakeholders.
The new reforms will take effect in the third quarter of the year. A committee has been formed to decide which industries will be included in the new law.
The move has been described as a boost to the country’s competitiveness by UAE’s prime minister and ruler of Dubai, Mohammed bin Rashid al-Maktoum.
“The UAE will remain a global incubator for exceptional talents and a permanent destination for international investors,” he said. “Our open environment, tolerant values, infrastructure and flexible legislation are the best plan to attract global investment and exceptional talents in the UAE.”
The UAE’s levels of foreign direct investment reached $10.3 billion in 2017, a 6.7% rise on the previous year.
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