|Starting a business within the UAE is fairly easy, and a lot of companies and foreigners are jumping at the opportunity with the new directives and initiatives launched in 2021 with benefits that will carry forward in the coming years.
In the space of several decades, the Emirates has had a fantastic transformation, from a small village of fishing and pearls to become a financial powerhouse with diverse thriving industries independent from oil.
Dubai is one of the highest business destinations attracting investors from all around the world. From start-ups to large enterprises, every business is leveraging the advantages of company formation in Dubai and witnessing significant growth in business. Over the past few years, more than 200k companies have registered in Dubai resulting in a robust economy.
Furthermore, the country features a stable government, strong capital flow, business-friendly taxation, and liberal trade restrictions.
The government is always encouraging investment and startups with various incentives such as long-term visas for investment, retirement visas, and the latest offering of 100% foreign ownership in onshore enterprises is creating a boom in the UAE business environment.
100% Foreign Ownership
With the ever-growing vision of his highness to further enhance the UAE’s position as a global leader in business, the UAE Cabinet recently approved 122 economic activities across 13 sectors eligible for up to 100% foreign ownership within the UAE.
The most concerning topic for all foreign business owners and companies was ownership rights when setting up an onshore business in the UAE.
Once this legislation comes into force, it will do away with the earlier regulations or in the very least enhance the rules which required foreign companies to have a mandated 51% partner.
This move by the UAE government should be of significant economic benefit with an anticipated increase in foreign direct investment.
The new legislation will no doubt help boost interest from both internal and external investors, innovators, and businessmen from around the world who are looking to set up a business within the UAE and were wary of this ownership law.
It is worth noting that though the Cabinet has approved up to 100% foreign ownership, it is still up to the discretion of the local authorities to work out the extent of ownership for eligible industries and economic activities.
With these new reforms and legislation coming into effect, the UAE aims to drive economic development and increase its attractiveness to foreign investment and within the long-term, we’ll surely witness a spur in economic activity and foreign direct investment.
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