Minister of Economy says amendments could also boost jobs, investor confidence
The UAE is expected to more than triple the number of companies over the next decade following a new decree that grants foreigners full ownership of businesses without the need for a sponsor.
During a media briefing, Minister of Economy Abdullah bin Touq Al Marri revealed that there are currently 300,000 companies operating across the country, with the majority (99.3 percent) “representing national companies.”
With the amendments to the Companies Law, the population of businesses should increase to 1 million within the next ten years, he said.
Last month, Sheikh Khalifa bin Zayed Al Nahyan, president of the UAE, issued a decree (Law No. 26 of 2020) which scraps the requirement for firms to have a major Emirati shareholder or agent.
Under the new amendments, businesses in several categories can now be fully owned by foreigners.
During the briefing on Wednesday, the UAE minister reviewed the new provisions of the law, as well as the changes in the procedures for setting up companies and conducting business in the country.
Al Marri said the new amendment would further enhance the openness of the country’s business climate, create new jobs and boost the confidence of foreign investors, thereby increasing the UAE’s position as a destination for foreign investments.
Sami Al Qamzi, director-general of the Dubai Economy said earlier that the recent amendments will have a far-reaching impact on the economy, as well as the flow of investments into the country.
He estimated that foreign investments should increase by 35 percent as a result of the landmark changes to company ownership rules.
“Granting full ownership to foreigners and the subsequent influx of investments will enhance operational and administrative efficiencies not only in the private sector but also in the overall economy,” Al Qamzi said.
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