UAE business reforms are ‘game-changing’ for its intl competitive advantage
Expatriate investors and businessmen welcomed the landmark UAE reform allowing foreign investors 100 per cent ownership of businesses as a far-sighted initiative that will bring about a paradigm shift in the investment environment of the nation. Most analysts and business leaders believe the bold new reforms would prompt an “unprecedented explosion” of foreign direct investment in Dubai and Abu Dhabi and will cement the growing status of the cities as major international financial centres.
“Dubai and Abu Dhabi are already recognised as two of the most powerful business and financial hubs in the world by international investors who are lured by the incredible possibilities offered in terms of finance, trade and
commerce, plus the famous ‘can do’ attitude and the low tax environment in these destinations,” said Nigel Green, founder and CEO of deVere Group.
Green said with the new business ownership law that permits businesses to be fully owned by foreign nationals coming into force soon, the appeal of the UAE as a preferred global business hub has just sky-rocketed. Under the new legislation, the UAE will allow 100 per cent ownership of businesses for foreign nationals from December 1, 2020 Previously, all businesses
were required to have a UAE citizen sponsor.
Analysts believe the new law will also have a positive multiplier effect by way of creation of jobs and an increase in productive capacity, resulting in less dependence on imports. Yusuffali MA, chairman Lulu Group, hailed the new law as “a landmark decision which has come at the perfect time.”
“The UAE is already seen as one of the most pro-active countries in the region and this new initiative will further boost its global standing. As the entire global economy is looking for new ways and means to overcome
the unprecedented challenges being posed by pandemic, I am sure this new law will help the existing as well as upcoming businesses,” said Yusuffali.
“The visionary leadership of this great country has once again set a new benchmark in ease-of doing-business that is sure to kick-start the next round of economic growth.”
Shailesh Dash, financier and entrepreneur, said this is one of the best news of 2020 and is going to help bring in significant capital inflows into UAE. “This was a much-awaited news and has the potential of bringing lots
of positive outcome for the economy. It also shows the commitment of UAE leadership in making UAE a great leader of the 21st century,” he said.
Rizwan Sajan, founder and chairman of Danube Group, said thanks to the visionary leaders, the investment landscape of the UAE is transforming drastically, making the nation more and more investor-friendly.
“The UAE has become a hub for global investors, who are taking advantage of the excellent business opportunities to the fullest. These kinds of timely reforms make the country a much more desired destination for starting
and developing business in the local and global markets. I wish the nation achieves greater heights in the coming year,” said Sajan.
Atik Munshi, a senior partner at Crowe UAE, said the current UAE Cabinet resolution 16 allowing 100 per cent foreign ownership for foreign nationals
and foreign companies in UAE entities will be surely considered a game-changer for the business community of the UAE and prospective investors.
“The new law reflects the positive and inclusive stance of UAE Government in attracting FDI to the country. This will act as a booster and catalyst for
prospective companies who used to consider the 51-49 per cent shareholding as a risky preposition,” said Munshi. He said the large expat business community would welcome this move. “However, the UAE free zones will need to redesign themselves to maintain their attractiveness.”
The new law has amended 51 articles of the existing Commercial Companies Law CCL and added new ones, mostly focusing on the regulation of provisions of establishing companies with limited liability shareholding.
The article was first published on Khaleej Times