The recent amendments to the commercial companies law in the UAE 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, according Sami Al Qamzi, director general of Dubai Economy.
The amendments will also contribute to increasing competitiveness and ease of business in the UAE in addition to bringing in more investments and creating more jobs, Al Qamzi said.
Foreign investments are expected to see a 35 percent increase as a result of the amendments, he added without giving a timeframe for this.
Al Qamzi’s comments follow the announcement last month that 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.
Al Qamzi said: “The amendments reflect the consistent efforts of the UAE to provide an excellent environment for doing business and they also represent a qualitative leap in positioning the country as a regional and global hub for investment and trade by developing the investment environment.
“Allowing foreign nationals 100 percent ownership of commercial companies will lead to a significant increase not only in foreign and domestic investments, as these amendments allow full freedom for investors to manage and operate their businesses.”
As much as attracting large companies and huge investments, the amendments will also encourage individual investors and residents to invest, especially in the small and medium enterprises sector, which is a critical link in production chains, Al Qamzi added.
“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.
Sami Al Qamzi, director general of Dubai Economy
Improvements in the flow and quality of investments will lead to a corresponding demand for high-skill, high-wage jobs, thus attracting more talent and experience into the UAE, he added.
Dubai Economy, also known as the Department of Economic Development of the Government of Dubai, is the body entrusted to set and drive the economic agenda of the emirate.
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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