Yes, you read it correctly! UAE government, in line with the New Foreign Direct Investment Law (Federal Law Number 19 of 2018) has finally announced the relaxation for almost 122 business activities to hold 100% foreign ownership in the mainland companies.
The list of business activities is mainly for companies dealing in the business of manufacturing products, offering services or in the agricultural sector. Upon the promulgation of this list by UAE Cabinet, every Department of Economic Development (DED) in the relevant Emirate have been empowered with explicit discretion to ascertain the percentage of foreign ownership in particular business activity. This clearly states that the foreign owner will be not be authorized to apply for 100% ownership automatically as it will be decided by DED.
Although it all seems to be good news, yet there are certain prerequisites for the applicant to be followed in accordance with the UAE Cabinet guidelines. Ergo, all investors willing to possess 100% ownership shall follow the below-mentioned conditions prior to filing an application before their respected DED:
Typically, DED is working on the case to case basis as there is no critical guideline for them to offer a certain percentage to the foreign owner. Importantly, any business activity qualifying for attaining 100% foreign ownership shall have a local sponsor or a service agent. The local agent can be a UAE national or a company wholly owned by a UAE national. Another significant fact for existing companies applying for seeking 100% ownership, there are several conditions which need to be followed, and for seeking this information, you must seek the assistance of Corporate Lawyers of Dubai.
The promulgation of this Cabinet decision has shed some light on how foreign owners can seek 100% or more than 49% ownership, yet the decision has left several spots for the respected DED to regulate foreign ownership in their own Emirate. Nevertheless, more clarity on this situation is always welcome for foreign owners to prepare themselves before filing an application for claiming higher ownership in mainland companies.
What is the full list of fines for money laundering in the UAE? Dr. Hassan Elhais
The UAE Ministry of Economy has announced the list of penalties for violations of the laws relating to money-laundering and terrorism financing.
Can I Appeal Against an Arbitration Award?
Arbitration is best described as a cost-effective alternate dispute resolution process, which assists in smoother business relationships without incurring the rigidity of court proceedings. To address many of the pitfalls of the arbitration process and to bring the UAE arbitration process in tune with the best international standards, the UAE enacted Federal Law No. 6 of 2018 on ‘Arbitration’ and its amendments (“Arbitration Law”).
Commercial leasing and breach of contract punishments
In legal terms, a lease agreement can be defined as ‘a contract by which one party conveys land, property, services, etc. to another for a specified time, usually in return for a periodic payment’. A ‘commercial lease agreement’ constitutes a written lease agreement whereby a landlord agrees to lease his commercial property to another person or entity for a given business purpose and specified time period.
