UAE is home to business owners from every corner of the world. Year after year, a number of international investors and business groups take advantage of its prime organizational environment.
Many global corporations chose to jump-start their business in UAE simply because of benefits like attractive corporate tax rates, availability of funding, talented workforce, flexible immigration policies for expatriates, advanced infrastructure, low crime rate, and the list goes on.
The new foreign ownership rule will put UAE’s global position as an emerging market and global hub for foreign investment. And along with it, the country is also looking forward to building positive commercial diplomacy with other nations. This means now is the perfect time for foreign investors to go ahead with their investment plans in setting up a business in the UAE.
By reaching double-digit growth in external non-oil trade during the first quarter of 2021, Dubai triumphs and once again proves its flexibility and resilience to recover swiftly from the global crisis of the Covid-19 pandemic.
Dubai’s foreign trade surged 10 percent during the January-March 2021 quarter and reached Dh354.4 billion compared to Dh323 billion in the same period last year, disclosed by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Dubai Crown Prince and Chairman of The Executive Council of Dubai.
He also says that “This remarkable growth will get us closer to the ambitious target of Dubai’s five-year strategy to raise the value of external trade to Dhs2 trillion and consolidate its position as a bridge connecting regional and international markets by constantly enhancing its infrastructure and logistics services. Furthermore, by hosting EXPO2020, ‘the world’s greatest show’, Dubai will make a significant contribution to the recovery of the global economy and help it move towards prosperity again.”
To what may be called a ‘new era in the business set up’, numerous investors and business groups have taken advantage of the amended Commercial Companies Law (CCL), allowing ex-pats to have 100% ownership of the business in the UAE.
Expected to have a far-reaching positive impact on the investment ecosystem of the UAE, the future looks bright for entrepreneurs and prospective investors seeking to enter the UAE market. This will not only bolster the economy but furthermore put UAE on the map as a preferred destination for individuals and organizations.
The 100% foreign ownership abolishes the existing mandatory requirement for the need for foreign entrepreneurs to work with local sponsors. It removes entirely the daunting prospect of allowing a third party to hold a large stake in your business something that can put foreign entrepreneurs off setting up in the UAE. Overseas investors new to the Emirates could get straight down to business, without the need to canvas for an Emirati company or individual to act as a partner. This will likely reduce time to market, and remove the additional red-tape and documentation that comes with setting up such a business relationship.
Professional service activities will continue to benefit entrepreneurs as they only require a local service agent and follow the structure of sole establishment or a civil company. Half the business activities which include trading and manufacturing qualify for 100% ownership. This new amendment of 100% ownership differs from one Emirate to another and thus a pre-setup consultation would be the first step in the incorporation process.
Dubai has become a favored destination for investors as it has proven to be the best place to be in this COVID -19 situation. The amendments aim to boost the UAE’s appeal as an attractive destination for both foreign investors, entrepreneurs, and talent and are designed to further strengthen the country's standing as an international economic center and encourage an investment flow to vital economic sectors.
To help you understand the concept of 100% ownership of business better, book a consultation and feel free to get in touch with our experts who are dedicated to providing assistance with every aspect of company formation.