The UAE Ministry of Economy announced that foreign investors and entrepreneurs will be allowed to establish and fully own companies in economic activities starting June 1. In a reform step towards make it easier to do business in the country.
The ministry stated in the statement that the aim is to “enhance the resilience and support of the national economy, and raise the attractiveness of the investment environment in the country to world-leading levels, through openness and flexibility in legislation.”
In 2019, the UAE amended the Commercial Companies Law and canceled a condition requiring investors and companies that want to open a branch within the country to have a citizen agent, provided that the amendment will take effect next month. The amendment will open the doors of thirteen economic sectors to foreign investors without restrictions, including renewable energy, agriculture, transport and electronic commerce.
The Companies Law supports facilitating the establishment and conduct of business activities in the UAE, increasing the attraction of foreign direct investment to the various vital sectors in the country, as well as developing and establishing new quality projects, increasing the diversity of the economic base and raising its productivity, supporting innovation, research and development capabilities in the country, and attracting talents and competencies.