Dubai economy on June 3 issued guidelines in which it explained the complete ownership procedure for foreign investors. The new development, which came into effect on June 1, is aimed at improving the investment opportunities to attract foreign investors to the United Arab Emirates (UAE).
Federal Decree-Law No. (26) of 2020 that made some amendments to some provisions of Federal Law No. (2) of 2015 about the ownership of commercial firms will stimulate the economic recovery of UAE contributing to its GDP
It will also help enhance Dubai’s rankings in the international investment indicators and leading global indices to expand business opportunities.
International investors seeking full ownership can complete the procedure by visiting the service channels of Dubai Economy or the digital platform, the Invest. About 59 investors across Dubai have benefitted from the new decision.
The ownership permits commercial activities such as general trade, jewellery, luxury watches, foods, and truck trading. Under the industrial category, a kindergarten school and a hotel have recently sought 100% ownership.
According to the Dubai economy guidelines, 100% foreign ownership is available for over 1,000 commercial and industrial activities in seven sectors that don’t fit under economic activities with a strategic impact.
However, Dubai Economy clarified that a share in percentage reduction of 51% from the partner from the Emirates withdrawal is possible if the legal procedures followed.
Moreover, full ownership doesn’t make any difference to current procedures for licensing, except you don’t mandatorily have an Emirati partner or fixed quota ratio. The guidelines also read that no extra fees, guarantees or capital are required to have full foreign ownership.
Explaining the licensing process, Dubai Economy said it’s impossible to convert the legal form of a company from a limited liability company (LLC) to a sole proprietorship under an international name according to the existing law. However, you can transfer the license to a one-person company with limited liability.