Starting June 1, UAE will allow 100% foreign business ownership

Starting June 1, UAE will allow 100% foreign business ownership

The amended Commercial Companies Law, which will enable foreign investors and entrepreneurs to form and completely own onshore companies, will take effect on June 1st, 2021, according to the UAE Ministry of Economy.

The UAE government recently amended the Commercial Companies Law to allow companies to be owned entirely by foreigners. Likewise, it has also been reasoned that the revised 'Commercial Companies Law' shall improve the country's competitiveness and is part of the UAE government's attempts to make doing business easier.

Likewise, it has also been argued that the new Commercial Companies Law's reforms would increase the UAE's attractiveness as a desirable destination for international buyers, entrepreneurs, and talent. Moreover, the amendments highlight the possibility of being able to boost the country's status as an international economic hub while being able to stimulate investment in the country's most important industries.

Similarly, it must be noted that the 'Positive List' specifies the activities that are open to 100% foreign business ownership. The activities under the 'Positive List' are as follows: 

1. Administrative and support services
2. Storage and transport haulage
3. Art and entertainment
4. Educational Services
5. Construction 
6. Healthcare Services
7. Hospitality Sector and food industry
8. Information Technology and communication
9. Space
10. Professional, scientific, and technical activities
11. Renewable energy
12. Manufacturing Industry 
13. Agriculture