UAE allows full foreign ownership of the company

UAE allows full foreign ownership of the company

The authorities of the United Arab Emirates allowed foreign businessmen to register and fully own companies that operate in the country. This order was published on the official website of the UAE President Khalifa bin Zayed bin Sultan Al Nahyan. Foreign entrepreneurs will be able to fully own organizations in the UAE, previously this was only possible under special conditions. The legislative changes will come into force on December 1, 2020.

However, innovations concern certain types of business. In particular, 100% ownership of legal entities operating in the energy, oil and gas, telecommunications, and transport sectors is not allowed. For these organizations, the old requirements remain – foreigners can only own 49% of such legal entities, at least 51% must belong to local residents.

The changes are aimed at attracting additional investment in the economy of the United Arab Emirates. For the same purpose, the President of the UAE has canceled the quotas for seats for UAE citizens on the board of directors.

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