Ahead of the United Arab Emirates’ 50th National Day, the government has rolled out 40 laws that solidify economic and social policy moves and provide modern legislation for the digital and cultural sectors that will make a “tangible positive impact” the economy, experts told Arabian Business.
They’ll also help attract foreign talent and investors.
UAE President Sheikh Khalifa bin Zayed Al Nahyan approved over the weekend a wide-ranging reform of the country’s legal system, which aims to strengthen economic, investment and commercial opportunities.
The raft of new laws also aims to maximise social stability, security and ensure the rights of both individuals and institutions.
“The updated laws cover a wide range of areas and are essential for two overarching reasons. Firstly, they follow up on announcements made over the past year to solidify the key economic and social policy moves. Secondly, they demonstrate that key sectors such as digital and cultural industries need modern regulations that support progress but offer protection in areas such as intellectual property. Both of these factors will provide greater confidence to foreign talent and investors,” said Scott Livermore, ICAEW economic advisor and chief economist & managing director, Oxford Economics Middle East.
The UAE, especially Dubai and Abu Dhabi, are home to hundreds of thousands of expats, and the country has worked to attract foreign talent by loosening restrictions and making obtaining a visa easier. The government, which is looking to boost the percent foreign direct investment contributes to the country’s gross domestic product, has also made moves to make investing in the country easier and more attractive.
“One of the most notable amendments which builds on the monumental ‘100 foreign ownership law’ which was enacted in June 2021, now allows non-UAE nationals to own 100 percent of the shares in UAE mainland incorporated companies in all sectors except for a few strategic activities. We anticipate a large influx of FDI as a result, with foreign investors expected to push ahead with expansion plans in the country that for the most-part has thrived during Covid-19 times,” said Scott Cairns, founder and managing director of Creation Business Consultants.
Corporate governance laws have also changed. The commercial register law has been expanded to allow local authorities in each emirate to access and manage commercial records of all entities registered in their respective emirate.
“Where the UAE was once criticised for the previous lack of transparency and compliance, this amendment will bolster not only investor confidence but also that of some other countries who seek trading partners with enhanced compliance measures,” Cairns said.
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