UAE ditches foreign ownership rules
DUBAI: The United Arab Emirates is abandoning decades of restrictions on foreigners owning companies and settling in the Gulf country to help lure money and talent in a slowing economy.
The new rules, reported by the state-run WAM news agency, include allowing non-Emiratis to control a company outright and offering residency of up to 10 years to specialists in medical, scientific, research and technical fields and top students.
The changes will take effect by the end of this year.
It’s the biggest recognition yet that the second largest Gulf economy is more reliant than ever on foreign investment and an expatriate workforce at a time when the oil-dependent region faces challenges rarely seen since the 1990s.
It follows legislation in neighboring Qatar last August that granted some foreigners the right to remain indefinitely as it adapts to a yearlong embargo on the country led by Saudi Arabia and other Arab nations including the UAE
Like in most other Persian Gulf states, a majority of the UAE’s population of 9 million consists of foreigners who are expected to leave once their employment ends and many send earnings abroad.
In 2017 alone, expatriates remitted 164 billion dirhams (US$45bil), according to WAM. “There seems to be a clear shift in policy to supporting economic activity, boosting investment and putting in place a framework to future development,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank.
The measures could help by increasing “investments levels, population inflows, development of new sectors especially in the technology front and reducing remittances out of the country,” she said.
While Abu Dhabi and especially Dubai have thrived on tourism, financial services and as airline hubs, the UAE government is turning to science and technology to ensure the country can keep growing.