UAE has introduced a game-changing ownership law scheduled for full effect by the fourth quarter of this year. The bill, known as the 100% Ownership law will now allow foreign investors in specific mainland destinations the entitlement of 100% LLC ownership without surrendering majority (51%) shares with a UAE or GCC National – a privilege once limited only to freezones company setups.
Eagerly awaited by business enthusiasts and economists, the new law will play a major role in influencing UAE’s investment landscape, prompting higher FDIs, boosting the country’s GDP and diversifying non-oil sectors. For expat business community, the law will help loosen fiscal burdens, shadow VAT knock-back and facilitate localized commerce through LLC company formation in Dubai.
In a conference, UAE’s Minister of Economy Sultan bin Saeed Al Mansouri said the final draft is awaiting the approval of the UAE Federal Nation Council for the landmark Law to take effect in the last quarter of 2018.
This came up with a series of other bold reforms introduced by the UAE government to incentivize UAE’s investor community and facilitate financial rehabilitation for companies in distress.
The systematic initiation of these reforms has served as a substantial legislative step in acknowledging, supporting and further improving the continued growth of the UAE as a vantage point for international investment.
In a recent Khaleej Times article, Tom Watkins, a renowned economist, and partner at Hadef & Partners mentioned that the impending law can yield significant development in UAE’s business practices while encouraging reluctant investor factions to fixate their business appetite in locally incorporated company structures.
Once the law comes into effect, Economists forecast an annual 20% increase in FDI inflow and a 2.7% increase in GDP for 2018, expanding up to 3.2% in 2019. In the same news article, Garbis Iradian, a leading Economist from Washington based Institute of International Finance revealed that UAE remained on the top spot as a prime destination for international investment, rounding up a sound 11 billion which accounted for 22% of Global FDI in 2017. He was quoted by Khaleej Times and said,
“The UAE’s friendlier business environment, excellent infrastructure, relatively diversified economy, and political stability continue to position it as one the most preferred investment destinations in the world”