UAE plans to include 10 new sectors to the companies law, allowing for 100% foreign ownership

The UAE’s Ministry of Economy is working on new legislation to include 10 sectors to the commercial companies law, which allows 100 per cent foreign ownership of onshore companies in the country, a senior official has said.

The legislation, which will enable investors and business in ’10 new sectors of strategic importance’ to come under the purview of the law, is in its final stages of formation.

The list of sectors and the regulations associated with their entry into the local market will be announced by the UAE Cabinet soon, confirmed Abdulla Al Saleh, undersecretary of the Ministry of Economy for Foreign Trade and Industry said at the Sharjah Economic Ramadan Majlis.

Al Saleh added that the cancellation of the national service agent requirement came into force on April 1.

He also stated that all current and previously licenced businesses in the UAE can amend their statuses according to the new amendments 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,” he said.

“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.”

He added: “A comprehensive strategy to attract bright minds from around the region and the world will be announced soon.”

The UAE announced in November that foreign nationals would be allowed to own 100 per cent of commercial companies within the country, eliminating the need for a UAE national to hold the majority share.

Under new legal amendments, businesses can be fully established by non-Emiratis of all nationalities.

Read: UAE to allow 100% foreign business ownership: Key points to note

Meanwhile a new industrial law is also set to be announced soon, in line with the UAE’s recently unveiled industrial strategy ‘Operation 300bn’, confirmed another official at the Sharjah Economic Ramadan Majlis.

“A new industrial law will soon come into force and will be instrumental to promoting a conducive environment for industry in the UAE,” said Omar Ahmed Suwaina Al Suwaidi, undersecretary of the Ministry of Industry and Advanced Technology.

“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”, he added.

Under Operation 300bn, the UAE is aiming to raise the manufacturing sector’s contribution to national GDP to Dhs300bn by 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,” said Al Suwaidi.

Read: Sheikh Mohammed launches ‘Operation 300bn’ strategy to foster UAE industrial sector