The UAE Cabinet approved a list of sectors eligible for 100 per cent foreign ownership – including 120 economic activities in industry, agriculture and services – as the country seeks to increase overseas investments and create jobs for nationals.
The UAE holds 40 per cent of total foreign investment in the region and is targeting an increase in its share, Sheikh Mohammed bin Rashid, UAE Prime Minister and Ruler of Dubai, wrote on Twitter on Tuesday.
"The list of economic activities open for foreign ownership will take into account everyone," Sheikh Mohammed tweeted. "Our directives are to create the best business environment for the local investor and for foreign investments … the investment wheel moves with these two wings."
Sheikh Mohammed on Tuesday reiterated a decision announced by the UAE Cabinet in July 2019, approving the sectors and economic activities eligible for up to 100 per cent foreign ownership in the country.
Previously, foreign investors could hold up to 49 per cent of a company registered in the UAE, unless it was in a designated free trade zone, and would have to partner with an Emirati investor who would hold the remaining 51 per cent. In 2018, the UAE approved a new foreign investment law that would allow foreigners to own more than 49 per cent and up to 100 per cent in some businesses.
The foreign ownership law is one of a series of economic reforms aimed at spurring investment and attracting foreign investors.
Like other GCC countries, which have traditionally relied upon hydrocarbons to drive their economies, the UAE has implemented a series of economic reforms to diversify its economy away from oil. Other reforms include lowering the cost of doing business to grow the non-oil private sector and easing visa rules.
