The recent amendments to the commercial companies law in the UAE aim to increase the number of companies in the UAE to one million within the next 10 years.
According to Abdullah bin Touq Al Marri, the UAE’s Minister of Economy, there are 300,000 companies in the UAE currently, and 99.3 percent represent national companies.
Al Marri discussed the benefits of the amendments on the business environment and the national economy, such as enhancing the openness of the country’s business climate, creation of new job opportunities, and increasing the confidence of foreign investors, during a recent virtual media briefing organised by the Ministry of Economy.
The UAE is to abolish the need for companies to have Emirati shareholders in a major shake-up of foreign ownership laws aimed at attracting investment into an economy reeling from the coronavirus and a decline in oil prices.
Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE, amended the UAE Commercial Companies Law of 2015 to allow foreign nationals 100 percent ownership effective from December 1.
Previously, Sami Al Qamzi, director general of Dubai Economy, said the changes will have a far-reaching impact on the flow and quality of foreign and domestic investments as well as overall economic growth of the country.
Foreign investments are expected to see a 35 percent increase as a result of the amendments, he added without giving a timeframe for this.
While the changes have been largely welcomed as a positive step forward, it has left question marks over the numerous free zones operating within the country, which were previously the default position for foreign companies looking to trade in the country with the offer of 100 percent foreign ownership.
The amendments are the latest in a series of measures aimed at liberalising business activity in the UAE, where foreigners comprise more than 80 percent of the population.
In October, Dubai launched a virtual visa scheme, which allows remote working professionals from all over the world to relocate to Dubai with their families with access to all services in the emirate, including schooling, telecom and services.
In September, the emirate launched a retirement programme for resident expatriates and foreigners over the age of 55.
Retire in Dubai, the first of its kind in the region, is being spearheaded by Dubai Tourism in collaboration with the General Directorate of Residency and Foreigners Affairs.
Dubai has also recently launched the Virtual Company Licence, which allows global businesses to access a regulated e-commerce platform populated by Dubai-based companies, while also exploring new markets and investment opportunities digitally.
The initiative, which allows investors worldwide to do business in Dubai digitally without having to live in the emirate, is expected to attract more than 100,000 companies.
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