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Can you finally own your company in the UAE?

Can you finally own your company in the UAE?

The government has reiterated that it is working on a new law to allow 100 percent foreign ownership of companies in the UAE.

September 14, 2009 9:51 by



The UAE cabinet is in the final stages of introducing a law to allow 100 percent foreign ownership of industries in the country, officials said on Sunday. Sultan Bin Saeed Al Mansouri, the UAE’s Minister of Economy, told reporters that the law was intended to attract foreign businesses to the UAE.

“The law to allow 100 percent foreign investment is ready, but still under study and should be finalized within the next two months. We are especially looking into certain sectors such as hi-tech and hi-value,” he told Gulf News.

“A lot of (international) industries want to move here, provided the industrial law comes. So we must create the right environment,” he added.

Currently, foreigners need a local sponsor to own at least 51 percent of the company if they want to set up shop outside free zones.

Officials from all the emirates in the country have been evaluating the benefits and costs of taking such a step for quite a while now.

In March last year, Al Mansouri had said that the law allowing for 100 percent foreign ownership would be passed within the next six months. “We will allow 100 percent foreign ownership wherever it helps the economy,” he had said at the time.



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2 Comments

  1. arw on September 20, 2009 5:52 pm

    maybe they will do what they did for international city licenses.. issue them when you buy a property then change it so you need a local sponsor in the following years.. too many flip flop laws here these days to consider moving out of a freezone just yet… been here too long to really believe that the sponsorship system will be pushed to one side.. it just does not fit in with the local work ethic of money for nothing.. too many people will loose easy income for doing nothing… somehow I cannot see it stick.. buy hey I hope i’m wrong…

     
  2. sleepless in Sharjah on October 21, 2009 10:22 am

    Further delays are inevitable. This doesnt seem to work in the interest of the UAE citizens and there is a certain degree of unemployment among them. This could be a smokescreen attraction

     

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