UAE to allow full foreign ownership of firms
This picture taken from the sea of Dubai on March 3, 2021 shows the skyline of the Gulf emirate with Burj Khalifa in the centre.
The United Arab Emirates announced Wednesday it will lift a cap on non-local ownership and allow full foreign control of business ventures from June 1.
The reform, originally flagged in 2019, will make it easier to do business in the Gulf state and encourage investment, the economy ministry said.
"The amended Commercial Companies Law aims at boosting the country’s competitive edge and is a part ofUAEgovernment efforts to facilitate doing business," said Economy Minister Abdulla bin Touq al-Marri.
The decision abolishes a longstanding law that limits foreign ownership to just 49 per cent.
To dodge the limit, some of the seven emirates that make up theUAE, including Dubai, have for years established free trade zones where foreigners can own up to 100 per cent of their business.
TheUAE's economy is the second-largest in the Arab world, behind Saudi Arabia.
It counts as the most diversified, particularly thanks to Dubai which gains 95 per cent of its income from outside the oil industry.
The capital Abu Dhabi sits on the majority of theUAE's vast oil reserves.
The country ranks 16th in the World Bank's index on the ease of doing business.
The decision opens up 13 major economic sectors to unrestricted foreign investment, including renewable energy, agriculture, transport and e-commerce.
In 2019, theUAEwas the top destination for foreign direct investment in the Arab world, attracting nearly $13.8 billion, according to the United Nations Conference on Trade and Development (UNCTAD).