Sectors for full foreign investment out in Q1
dubai — The UAE government aims to publish a list of positive sectors for foreign ownership of up to 100 per cent by the first quarter of 2019, the economy minister said on Monday.
A new foreign investment law, approved last month, allows foreigners to own more than 49 per cent and up to 100 per cent in UAE-based businesses. Free zones in the country already permit 100 per cent foreign ownership, but ‘onshore’ businesses limit foreign ownership to 49 per cent.
“The issuance of the Federal Law by Decree No. (19) of 2018 regarding Foreign Direct Investment will enhance the UAE’s leading position on investment attractiveness on a global level,” Sultan bin Saeed Al Mansouri, UAE Minister of Economy, said on Monday on the sidelines of the World Economic Forum’s Global Future Councils meeting in Dubai.
Al Mansouri also explained that one of the main objectives of the law is to motivate major global corporations to invest in the UAE’s markets, especially in the fields of innovation, technology, space, renewable energy and artificial intelligence, thus supporting the goals and objectives of UAE Vision 2021.
“We expect a growth in the amount of investments to the UAE to be from 15 to 20 per cent during 2019,” he said.
One of the main objectives of the law is to motivate major global corporations to invest in the UAE
Sultan bin Saeed Al Mansouri, UAE Minister of Economy
He said the issuance of this law is a pivotal step in the UAE’s efforts to strengthen the legislative system that supports the economic environment in the country. “This will enhance the investment environment and highlight its incentives and elements to a new stage. This law represents a strong start towards new horizons, which will enhance the national economy of the UAE in line with today’s changes and developments in the future, especially foreign ownership in investment projects.”
Shedding light on the details of the new law, the minister said the provisions of the law shall apply to all FDI projects established or licensed in the UAE; and shall not apply to projects established in the financial and non-financial free zones of the country.