Breaking: Foreign Nationals No Longer Need a Local Sponsor to Own a Business in the UAE
As a way to bolster the Emirati market, all foreign nationals can now acquire 100% ownership of their businesses with no need for Emirati co-ownership. This new rule will be applicable starting December 1st of this year. In fact, this announcement came along with further adjustments to commercial company law, an act that would actually reduce costs for investors who consider doing business in the UAE and make the process of starting the desired business easier and more accessible as well.
When it comes to starting a business in the UAE, local ownership restrictions were perhaps the number one issue that left foreign entrepreneurs scratching their heads. Today’s announcement that 100 percent ownership of businesses is now permitted for foreign nationals signals great news for the UAE economy – and of course overseas investors looking to do business in the Emirates. This will further cement the UAE’s reputation for its pro-business culture and conducive infrastructure for foreign investment. In line with the UAE’s shift to a knowledge-based economy, this move will see these ambitions realized within an entrepreneurial environment that harnesses the talent and creativity of its residents, and future investors in the region.
Sachinn J Laala, CEO of Shopper marketing agency Liquid, a foreign investor in the UAE, reacts to the new law
The new commercial amendments includes the reconstruction of some rules for limited liability as well as shareholding companies, and the canceling of Federal Decree-Law No. 19 of 2018 regarding foreign direct investment as well.
