UAE plans to relax corporate ownership rules
30 de outubro de 2017
According to the countrys minister of Economy, Sultan Bin Saeed Al Mansoori, new norms should remove requirement for foreign companies to have local partners with at least 51% of the companys capital.
São Paulo – The United Arab Emirates are planning to relax the rules regarding foreign investments in the country with the creation of a new law that remove the requirement for a local partner holder of 51% of the business, reported this Monday (30) the website of the magazine Arabian Business from Dubai. The idea is for the rules to go into effect already next year, according to the country’s minister of Economy, Sultan Bin Saeed Al Mansoori.
The statement was given by the minister in an event in Dubai that focused on the UAE and India trade relations. According to him, the law should go through the Federal National Council soon.
The UAE Commercial Companies Law requires each company established in the country to have one or more local partners. The percentage sum of these local partners in the company’s capital can’t be below 51%. The exception are companies established in free trade zones, which can have 100% foreign capital ownership.
“We do have our challenges with the laws and regulations governing investments here in the UAE. The 51-49 percent is always a challenge for many of the investors who would like to own 100 percent of the investments as they put here in the UAE,” said the minister.
Al Mansoori believes that the law should identify the sectors in which the rules will be relaxed. Currently, companies from certain sectors are exempt of the rule, such as oil and gas concessions, water and electricity transmission and distribution, as well as some foreign banks. Companies established in free trade zones are also exempt of this rule.
According to the Arabian Business, the minister of Economy said that the new law will help with the diversification of the UAE’s economy.
*Translated by Sérgio Kakitani