New UAE companies law seen in 2011-econ min
Companies law part of broad measures to up competitiveness; Minister sees law as close at hand.
February 16, 2011 3:54 by Reuters
A new UAE companies law could be introduced before the end of 2011, the minister of economy said on Wednesday.
“It could be any time this year,” Sultan bin Saeed al-Mansouri told reporters at a conference in Abu Dhabi.
“It could be this week or next week or next month. From the ministry level, our work is done. It’s more reviewing of anything that needs to be done.”
The companies law, which tackles a host of areas, may relax foreign ownership restrictions and also allow full ownership in some sectors upon request.
By UAE law, only nationals are allowed full ownership of companies operating outside of free zones. The law currently requires foreigners to have a UAE national as a partner or sponsor to conduct business.
The law will also make it mandatory for companies in the UAE to create a general corporate governance framework.
The legislation is part of a move to modernise the UAE’s company, foreign investment and industrial laws to boost transparency and investor confidence. [ID:nLDE6390F9]
(Reporting by Stanley Carvalho, writing by Matt Smith; Editing by Reed Stevenson)