New FDI law to boost investment by 20%
dubai — The new UAE foreign direct investment law which will allow majority ownership in companies outside free zones will boost FDI by up to 20 per cent during the next 2 years, a senior official said on Monday.
Speaking at a press conference in Sharjah, Hind Al Youha, investment director, Ministry of Economy, said FDI will grow by 15 to 20 per cent next year and 2020 after the implementation of the new law.
Full ownership in around a dozen sectors will not be allowed due to strategic reasons. A complete list of sectors where full or majority ownership is permitted will be released in the first quarter of 2019.
Al Youha was speaking at an event to announce the launch of the fourth edition of the Sharjah FDI Forum which will run on December 10 and 11.
Mohamed Juma Al Musharrakh, CEO, Sharjah FDI Office, said the new law will change the flow of FDI into the UAE in general and Sharjah in particular.
Dozens of delegates and speakers from the UAE, GCC and other foreign countries will address the forum. Among the keynote speakers will be Sultan bin Saeed Al Mansouri, UAE Minister of Economy, Marwan bin Jassim Al Serkal, executive chairman, Sharjah Investment and Development Authority (Shurooq), and other senior government officials.
“We tried to diversify the speakers and participants such as academics, businessmen, economists and personalities from the public sector. The first session will discuss the new FDI law; the second session will focus on the 5th generation of Internet and the third session will focus on the general economy. Other sessions will highlight the role of women, sustainability and CSR of companies,” Al Musharrakh said.
The FDI flow into Sharjah more than doubled in 2017 to Dh5.97 billion, leading to a major jump in job creation.
Al Musharrakh forecast up to a 30 per cent increase in foreign investments due to the new FDI law as well as attractive propositions offered by free zones in Sharjah.
The new foreign investment will mainly come into logistics, tourism, healthcare and other new projects initiated by Shurooq.