The changes to ownership laws being introduced across the UAE have received a warm welcome from the business community, who believe it will facilitate doing business in the country and attract foreign investment.
The reforms to companies' law are wide-ranging, but it is the removal of the requirement for a local sponsor for companies that operate onshore that is seen as the biggest potential fillip for investment flows into the country.
“This is a fantastic move. For companies that do have sponsors, it will reduce their operating costs and create a more competitive environment. It will boost the number of onshore companies opening up,” said Amro Nahas, managing director at alternative asset manager Ritz Banc Group.
Will Seivewright, head of corporate at law firm DLA Piper, said the changes by the government are “a giant step forward along a path that the UAE has been going for a number of years, but this level of rapid change will have a significant impact on the market".
"It makes the UAE that much more attractive as a destination for FDI."
The removal of the requirement for a local sponsor will give entrepreneurs a greater sense of control over their own destiny, said Wadih Haddad, founder of self-storage company The Box.
"I speak a lot at conferences, and sometimes when someone talked to me and found about the need for a local sponsor, the conversation would end there," Mr Haddad said.
It is also likely to provide an overall demand boost for commercial property, which has witnessed a few difficult years since the decline in oil prices which began in 2014.
"The change is significant, but should not be looked at in isolation," said Sachin Kerur, Middle East head of law firm Reed Smith.
“It is obviously part of a package of legislative reforms aimed at ensuring the UAE retains its position as the leading hub for regional and international business," he added.
Scott Livermore, chief economist at Oxford Economics Middle East, said opening up the economy further “is another example of the UAE embracing the contribution that foreigners can make to the recovery and diversification of the economy, and is consistent with the recent revamping of visa regulations and laws applied to residents."
The combined recent measures by the Abu Dhabi and Dubai governments should stimulate an inflow of capital and talent to the UAE, which bodes well for the recovery and longer term growth prospects, he added.
“It’s taken a pandemic to push over the line but the UAE, and Dubai in particular, has been actively deregulating this year,” Tarek Fadlallah, chief executive of Nomura Asset Management in the Middle East, said.
Although there will be some consolidation of office space by companies that have both an onshore and offshore presence, it is likely to spur demand for buildings onshore, said Taimur Khan, head of research at Knight Frank Middle East.
The fact that setting up an onshore business is becoming easier and less costly "will encourage new business formation”, he said.
"This is something that is very positive from an FDI perspective as it removes many barriers and allows investors to have full control of their business," said George Hojeige, chief executive of Virtugroup, a company formations business for both onshore and free zone companies.
He argued, however, that it is "a misconception" that people only use free zones to gain 100 per cent foreign ownership.
"Free zones have more advantages, such as no duty on importing and exporting," he added.
The new changes will be a boon to technology and manufacturing companies that want to operate independently in the UAE, said Mr Nahas.
Overall, he said the decision by the government "will energise the business sector and bring momentum to it in three to five years to come. Small and medium-sized businesses will benefit the most as it will reduce their operating cost and provide them with additional capital to finance their growth."
Indoor cricket in a nutshell
Indoor Cricket World Cup – Sep 16-20, Insportz, Dubai
16 Indoor cricket matches are 16 overs per side
8 There are eight players per team
9 There have been nine Indoor Cricket World Cups for men. Australia have won every one.
5 Five runs are deducted from the score when a wickets falls
4 Batsmen bat in pairs, facing four overs per partnership
Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.
Zones
A Front net, behind the striker and wicketkeeper: 0 runs
B Side nets, between the striker and halfway down the pitch: 1 run
C Side nets between halfway and the bowlers end: 2 runs
D Back net: 4 runs on the bounce, 6 runs on the full
More from Rashmee Roshan Lall
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
The Florida Project
Director: Sean Baker
Starring: Bria Vinaite, Brooklynn Prince, Willem Dafoe
Four stars
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
10 tips for entry-level job seekers
- Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
- Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
- Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
- For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
- Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
- Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
- Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
- Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
- Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
- Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.
Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
UAE currency: the story behind the money in your pockets
