The UAE will review rules governing foreign ownership of companies in the next month and implement a new law by the end of this year, economy minister Sultan bin Saeed Al Mansouri said yesterday.
“The law should be submitted to the cabinet within a month,” he told Reuters. “Our expectation is that the law would come out by 2010.”
Under current regulations, business owners from all nationalities except from within the GCC must have a local majority partner.
Exceptions apply in free zones such as Dubai Internet City, where 100 per cent foreign ownership is allowed.
The new regulations have been in the pipeline for several years and are aimed at increasing foreign investment as restrictions on full ownership were considered a key reason for holding back investment and stifling competition.
Al Mansouri said in September the law was in its final stages and would include a rule stipulating a minimum capital of dhs200 to 300 million.
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