Foreign investors may soon be able to hold 100% of the capital in UAE companies. In a decision announced yesterday, the laws restricting the participation of foreign investors in UAE companies will be overhauled.
The announcement is consistent with the UAE’s considerable efforts to improve the attractiveness of the business environment. In particular, amending Federal Law No. 2 of 2015 on Commercial Companies (the Commercial Companies Law) to remove the need to have an Emirati national hold the majority of shares in a company or be registered as a national agent is likely to significantly open the UAE up to greater foreign investment.
It is also anticipated that these changes will reduce the complexity and costs associated with setting up a company in the UAE and may result in corporate entities relocating from free zones to the mainland UAE for the set up and operation of their business.
The full scope, details, and timeline for implementation of these changes has yet to be announced.
PRO Partner Group looks forward to supporting corporate entities with a transition towards maximum foreign ownership.
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