Foreigners establishing a company in the UAE will no longer need an Emirati shareholder or agent under changes to UAE company law that will go into effect on June 1.
“The amended Commercial Companies Law aims at boosting the country’s competitive edge and is a part of UAE government efforts to facilitate doing business,” Minister of Economy Abdulla bin Touq Al Marri was quoted as saying.
The UAE announced the law allowing 100% foreign ownership of companies last year – one of several steps aimed at attracting investment and foreigners into the Gulf state, which was badly hurt by the effects of the pandemic.
GCC countries have all been making efforts to attract foreign investment as they attempt to move away from oil-and-gas-centric economies. In April 2021, The Qatari Cabinet approved a bill that will allow non-Qatari investors to own up to 100% of the capital of companies listed on the Qatar stock exchange. In January 2021, the UAE announced that it would start granting citizenship to foreigners upon nomination from UAE nationals. While Saudi Arabia granted a record 466 foreign investment licenses in the fourth quarter of 2020, the highest on record since data compilation began in 2005. Additionally, the Kingdom is aggressively pushing international companies to move their regional headquarters within its borders.
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