Webinar on UAE economy, new FDI law held

ABU DHABI / WAM

The Abu Dhabi Chamber of Commerce and Industry, in cooperation with the Pakistan Business Professional Council in Abu Dhabi and the UAE Ministry of Economy, has hosted a webinar, entitled “Latest Updates on UAE Economy 2021 and New FDI Law:100% Foreign Ownership”.
The webinar presented a general overview of the UAE economy in 2021, and new FDI regulations allowing for 100% ownership by foreign companies and investors. More than 350 officials, companies and interested individuals operating in diverse economic sectors
attended the virtual seminar.
In his opening speech, Mohamed Helal Al Mheiri, Director General of the Abu Dhabi Chamber, said that the decree issued by President His Highness Sheikh Khalifa bin Zayed Al Nahyan in November 2020 amended the restrictions on foreign ownership within the companies Law in the UAE.
“The newly issued decree amended the pertinent provisions of the UAE Federal Law No. 2 of 2015 on Commercial Companies, and supersedes the UAE Federal Law No. 19 of 2018 on Foreign Direct Investment (or the “FDI Law”),” he said.
Al Mheiri pointed to some of the important regulatory changes, which include a cancellation of the requirement for commercial companies to have a majority Emirati shareholder or agent. It also allows full foreign ownership of onshore companies in certain commercial activities, in accordance with the policies set by the UAE cabinet.
Another change stated that where an existing company is converted into a public joint stock company, it can sell up to 70 percent of its shares in the related public offering, up from the previous 30 percent.
Al Mheiri emphasised that these changes are quite significant, and reflect ongoing efforts by the government to develop a favorable legislative environment for various economic sectors to thrive in the UAE.
Some of the expected benefits include stronger attraction of FDI. According to the latest UNCTAD data, inward FDI in the UAE exceeded $13.7 billion in 2019, which was more than all other GCC countries combined. Other benefits include increased private sector competition, resulting in better products and services to end consumers; adoption of international best practices in sustainability and 4IR technologies by attracting companies and contributing to the transfers of knowledge, and further creation of job opportunities in the private sector.
“This remarkable development is expected to further enhance the UAE’s position as the Gulf’s premier business hub, and as a stronger magnet for foreign capital and investment. The move is expected to support the continued growth of the UAE as it becomes a more robust, vibrant, and diverse economy and place to do business. And, in the next 50 years – by 2071 the UAE will become the first in the world in global indicators for well-being, happiness and quality of life,” noted Dr. Syed Qaiser Anis, President of the Pakistan Business Professional Council in Abu Dhabi.