UAE approves full foreign ownership of firms

Published July 3, 2019
The move covers fields including agriculture, manufacturing, renewable energy e.t.c. — AFP/File
The move covers fields including agriculture, manufacturing, renewable energy e.t.c. — AFP/File

ABU DHABI: The United Arab Emirates said on Tuesday it had decided to lift a decades-old cap on foreign ownership and allow full foreign control of business ventures.

“In a cabinet meeting I chaired in Abu Dhabi, we approved 100 percent foreign ownership in 122 economic activities,” UAE vice president and prime minister Sheikh Mohammed bin Rashed Al-Maktoum said on Twitter.

The decision abolishes a decades-old law that limits foreign ownership to just 49 per cent.

The move covers “fields including agriculture, manufacturing, renewable energy, e-commerce, transportation, arts, construction and entertainment,” Sheikh Mohammed added.

The seven Sheikhdoms that comprise the UAE will have the discretion to specify their own ceilings for foreign ownership of key business sectors, a government statement said. To dodge the 49pc limit, some emirates led by Dubai have long established free trade zones where foreigners can own up to 100 percent of their business.

Sheikh Mohammed said Tuesday’s decision opens the UAE economy to all nationalities so as “to make it one of the best destinations for global investments.”

The cabinet decision essentially opens up 13 major economic sectors in the Arab world’s second largest and most diversified economy.

The capital Abu Dhabi sits on the majority of the UAE’s vast oil reserves and pumps close to three million barrels per day.

The UAE is already the Arab world’s top recipient of foreign direct investment, attracting more than $11bn last year.

Published in Dawn, July 3rd , 2019

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

IHK resolution
Updated 08 Nov, 2024

IHK resolution

If the BJP administration were to listen to Kashmiris, it could pave the way for the resumption of the political process in IHK.
Climate realities
08 Nov, 2024

Climate realities

THE Air Quality Index in Lahore once again shot past the 1,000-level mark on Wednesday morning, registering at an...
Rule by fear
08 Nov, 2024

Rule by fear

THE abduction of an opposition MNA, as claimed by PTI, is yet another grim episode in Pakistan’s ongoing crisis of...
Trump 2.0
Updated 07 Nov, 2024

Trump 2.0

It remains to be seen how his promises to bring ‘peace’ to Middle East reconcile with his blatantly pro-Israel bias.
Fait accompli
07 Nov, 2024

Fait accompli

A SLEW of secretively conceived and hastily enacted legislation has achieved its intended result: the powers of the...
IPP contracts
07 Nov, 2024

IPP contracts

THE government expects the ongoing ‘negotiations’ with power producers aimed at revising the terms of sovereign...