The Era of 100% Foreign Ownership in the UAE: A Paradigm Shift for Global Investors

The UAE has become a magnet for global investors, and the government's recent policy changes have propelled it even further.

Effective from 1st June 2021, the UAE has introduced new amendments to the Commercial Companies Law, allowing investors to enjoy complete foreign ownership of companies within the country.

The Evolution of UAE's Business Infrastructure

Renowned as a premier business destination, the UAE has continuously enhanced its business infrastructure to attract investors.

The recent modifications to the Commercial Companies Law further bolster the UAE's commitment to cultivating a favorable ecosystem for businesses to thrive.

Understanding the New UAE 100% Foreign Ownership Laws

The revised legislation marks a groundbreaking shift, allowing individuals of various nationalities to acquire 100% ownership of businesses in the UAE mainland.

This significant change eliminates the need for Emirati shareholders or agents, streamlining business processes and enhancing competitiveness.

Key Changes in the UAE 100% Company Ownership Law

• Removal of Local Sponsor Requirement: Foreign investors now have complete control over their companies without the need for local sponsors, encouraging a broader range of investment.
• Enhanced Corporate Governance: Electronic voting in general assembly meetings and diverse board member appointments improve decision-making and corporate governance practices.
• Accountability and Transparency: Stakeholders can take legal action against companies that fail to fulfill their duties, reinforcing accountability and bolstering investor confidence.
• Strategic Impact Committee:A committee will regulate activities of 'strategic impact' and define licensing requirements for such companies, promoting stability and growth.
• Flexibility for Joint-Stock Companies: Joint-stock companies can now sell up to 70% of the company through IPOs, expanding investment opportunities and liquidity in the UAE's capital markets.

The recent changes to the UAE's Commercial Companies Law unlock new possibilities for global investors which allowing 100% foreign ownership and fostering a business-friendly environment.

These amendments reinforce the UAE's position as an attractive investment destination and offer entrepreneurs a transformative journey of success and growth.

With its thriving economy, robust infrastructure and investor-friendly policies, the UAE continues to evolve as a global business hub, presenting vast opportunities for investors seeking to capitalize on its potential.