Following the announcement of new law in November 2018 in which the UAE Cabinet approved plans to allow for up to 100% foreign ownership of certain onshore companies registered in the UAE, a total of 122 economic activities expanding across 13 sectors have now been announced as eligible.
- Administrative and support services;
- Art and entertainment;
- Educational activities;
- Hospitality and food services;
- Information and communication;
- Manufacturing industry;
- Professional, scientific and technical activities;
- Renewable energy;
- Space; and
- Transport and storage.
Companies which fall out with the approved sectors and economic activities will remain subject to the current law requiring a 51% local shareholding.
The intention behind the new law is part of the UAE’s plan to attract further foreign investments and boost the local economy. The UAE cabinet has also announced that local governments at an Emirate level will have the authority to decide on the percentage of foreign ownership for each sector and activity.
For further information on how our team at Davidson & Co can assist you with your business set up please contact us on +971 343 8897.