23 Nov 2020
Yesterday, the UAE completely overhauled commercial company ownership laws, being the most recent in a series of sweeping legal changes made in the country over the past month.
Onshore companies will no longer be required to have an Emirati national as the majority shareholder, meaning that 100% foreign ownership should be permitted once the amendments are enacted.
To enable the above ownership changes various new clauses will be added, and amendments made, to the current Commercial Companies Law (Federal Law No. 2 of 2015) ultimately cancelling the Foreign Direct Investment Law (Decree No. 19 of 2018), making it far easier and cheaper to conduct business in the UAE.
The full extent of the announced changes are not yet known but it is expected that local authorities will be permitted to determine the level of participation (and potentially mandatory appointment) of Emiratis in such companies. However, the UAE is undoubtedly committed to positioning the country as a global hub for business and prioritizing economic growth.
Should you have any questions regarding the announced changes, please do not hesitate to contact us. We will provide updates on this matter when more information becomes available.
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This article is based on publicly available information and given for informational purposes only. It is not intended as legal advice or as a comprehensive analysis of the matters referred to herein.