UAE to include 10 new sectors to companies’ law, offering 100% ownership to Expatriates
UAE’s Ministry of Economy is working on including 10 new sectors to the Commercial Companies Law which can be fully owned by a foreign national without the help of a local sponsor.
The formation of the new sectors of ‘strategic importance’ is under its final stage and will be soon announced to the public, said Abdulla Al Saleh, undersecretary of the Ministry of Economy for Foreign Trade and Industry.
Al Saleh also mentioned that the current and previously licensed companies can change their status according to the new amendments made to the Commercial Companies Law.
“Legislations that have been issued or those that will be enacted soon seek to increase the country’s competitiveness for both local and international investors, and advance business performance. These legislations are not the outcome of a crisis, but follow a clear vision of the country’s economic future envisioned collaboratively by federal, local, and private sector stakeholders. The future depends primarily on attracting innovative talents who will lay the foundations of economies of the future. A comprehensive strategy to attract bright minds from around the region and the world will be announced soon.”, he added.
It was in November 2020 that UAE announced the amendment of the Commercial Companies Law allowing 100% ownership to foreign nationals without the help of a local partner.
In addition to these, a new industrial law will also be announced soon followed by the recent industrial strategy ‘Operation 300 bn’, confirmed an official of the ministry.
Omar Ahmed Suwaina Al Suwaidi, undersecretary of the Ministry of Industry and Advanced Technology said, “A new industrial law will soon come into force and will be instrumental to promoting a conducive environment for industry in the UAE. We have also tackled financing issues startups face in order to boost their performance. A National Added Value Programme will be launched soon to support national products, enhance their competitiveness and find new markets for them.”
Under the operation 300bn, the country is aiming to increase the contribution of the manufacturing sector to the national GDP to AED 300 billion by the year 2031.
“We have held meetings and workshops with our industry partners to identify their challenges and discussed priority sectors under three pillars – the UAE’s competitive industries, including the chemical, petrochemical, pharmaceutical, defense and heavy industries; the national food and healthcare security industries; and industries of the future, including space and renewable energy, among others,” added Al Suwaidi.
The amendment of the Commercial Companies Law had brought in a positive impact in the economy and with the introduction of 10 new sectors, the possibilities UAE has to offer will be widened. The country has been focusing on its overall growth and has been able to withstand the effects of the global pandemic with its strong economy. The new sectors will bring in more employment as well as investment opportunities in the country.