UAE considering laws to boost non-oil sector contribution

The Ministry of Economy is working on a number of initiatives and laws to help increase the contribution of the non-oil sector to 80 per cent by 2021 from 70 per cent now, said the Minister of Economy in an exclusive interview.

The ministry has completed a draft investment law that includes foreign direct investment and has been submitted to legislative bodies for approval, said Sultan Al Mansouri.

The law will allow investors to gain from incentives and exemptions available for economic activities at the federal level, as well as increase the percentage of foreign ownership of projects in specific sectors and activities.

Among the other laws the ministry is working on: industry regulation law, regulation and protection of industrial property patents and industrial designs law, commercial transactions law and arbitration law, the minister added.

The government is spending Dh300 billion on about 100 initiatives covering health and education, energy, transport, water and technology to prepare the UAE for the post-oil era.

The government is also implementing reforms, including the introduction of value-added tax to help curtail the reliance on oil income. The minister expects the introduction of VAT to help maintain government spending on education, health and public utility services and other vital sectors.