On 19 May 19 2021, UAE GVT announced amended Companies Law will take effect on 1 June 2021, allowing foreign investors to establish and fully own onshore companies.
Background
On 23 November 2020, UAE GVT presidential decree relaxed limits on the foreign ownership of onshore firms.
- The decree is meant to open up UAE economy and strengthen UAE's global status.
- Follows DIFC Courts, FDI partnership to boost foreign direct investment.
Amendments to Companies Law
- Amended UAE Federal Law No. 2/2015 to allow foreigners to own 100% of companies.
- Previously, expatriates' ownership was capped at 49% for firms outside of free zones.
- Foreign firms wishing to open branch in UAE, no longer need an agent with citizenship.
- Removed quotas requiring Emiratis to hold majority of board positions, serve as chairs.
- Companies going public can sell 70% of their shares, instead of the current 30% limit.
