According to a landmark reform by the UAE Government, foreign investors and businessmen would be able to gain 100% ownership in businesses across the country. This law was formulated by Foreign Direct Investment Law, and came into effect on 1st December, 2020.
This also means that several categories of business mandating 51% shareholding of local owner becomes invalid. This new law has been extremely beneficial for foreign owners in UAE as it helps them to gain direct control over their business and allows better flexibility in running various business transactions and investments.
HOW WILL THIS NEW LAW IMPACT THE ECONOMY OF THE NATION?
This law was devised by the Ministry as part of it’s plan to encourage new businesses and investments in the country. With the advent of this new law, it has become quite easy for foreign investors in setting up their businesses and helps them to gain a direct control over its working. This helps them to devise new strategies in order to enhance the growth and development of the business.
WHAT WILL BE THE BENEFITS OF 100% FOREIGN OWNERSHIP?
This new law will bring in the required development and prosperity in the country. Some of the benefits of the new laws are as follows
- It will ensure increased opportunities for people all across the globe and will enhance employment opportunities for people.
- The new law will warrant better control over business activities and will ensure better scope of growth.
- It will establish an increase in economical activities in the region thereby contributing directly to the GDP of the nation.