From 1 June, foreign investors opening a company in the United Arab Emirates will no longer need an Emirati shareholder or agent. Whilst there was an announcement in late 2020, we had been awaiting the legislation from the UAE government, which was released yesterday confirming an extensive list of business sectors that will now allow 100% foreign ownership.
The amended Commercial Companies Law will allow foreign investors and entrepreneurs to establish and fully own onshore companies in the UAE. This is one of a number of recent initiatives aimed to boost the UAE as an attractive destination for foreign investors.
Naro Zimmerman, head of UAE at JTC, commented, ‘This amendment to the Commercial Companies Law is welcomed and will further strengthen the UAE’s position as a top international finance centre. It will encourage a flow of investments to the region, and it demonstrates that the UAE is open for business and willing to adapt to meet the expectations of foreign investors.’