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Learn About UAE Laws

A Legal System that Enhances Investment Environment

The UAE has advanced set of laws that align with the national investment directives including well-established legislative structures that aim to attract foreign investment. The Commercial Companies Law of 2020 is a qualitative leap in legal legislation encouraging investment and business establishment, granting foreign investors the ability to establish companies and have full ownership of their companies. Investment opportunities are offered in all economic sectors and activities, with the exception of activities with a strategic impact.

Attracting Foreign Investments

Commercial Companies Law Enhances Open Business Environment

Federal Law No. (26) of 2020 regulates company activities in the UAE and amends certain provisions of Federal Law No. (2) of 2015 on commercial companies. It is considered a significant step taken by the UAE towards developing its national economy and strengthening it to reach new levels of excellence and leadership, in addition to adopting new models of economic development that are aligned with its futuristic vision. The law seeks to enhance the open business environment, boost ability to attract foreign investments in new economic sectors, diversify the economic base, increase the contribution of non-oil sectors to GDP, create new employment opportunities, drive market growth, localise technologies, and develop human talent and resources.

Key Benefits Granted to Foreign Investors by Federal Law No (26) of 2020 Amending the Commercial Companies Law

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null Possible ownership in strategic activities, in accordance with specific licensing guidelines

Investors of various nationalities may own and partake in managing companies engaged in strategic activities, provided that they comply with licensing guidelines issued by the UAE Cabinet, in addition to the authorities of competent entities with regards to approving the requests of incorporation, specifying the contribution of nationals in company capital or boards of directors. This is in addition to identifying the fees related to licensing. The UAE Cabinet may – pursuant to a request made by the Ministry of Economy, relevant entity or competent authority – exempt any company regulating its activities in accordance with special legislations, from any requirement or provision pertaining to the percentage ownership of nationals or their management of any such company.

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