- December 10, 2020
- Posted by: Aswani
- Category: News
The recent amendment to the Commercial Companies Law in the UAE is expected to have a positive influence on foreign and domestic investments and on the economic growth of the country.
The amendment that plans to give complete ownership to foreign investors aim to bring in more foreign direct investment into the country and to strengthen the economy of UAE, which like any other country is facing a huge economic crisis due to COVID-19.
The Vice-President and Prime Minister of UAE, His Highness Sheikh Mohammed bin Rashid Al Maktoum, stated that “the country now has a fertile legislative environment for foreign investments.”
Sami Al Qamzi, director-general of Dubai Economy, recently stated his opinion on the new amendments made to the Commercial Companies Law. He said that it will benefit the economy and will also increase the competitiveness in businesses and will open new job opportunities. He added that with the new law in effect, it will increase up to 35% of foreign investments.
“The amendment was a result of the UAE’s effort to make it a suitable place for business and to position the country as a global and regional hub for trade and investments. The new law allows 100% ownership of business to foreign nationals; this will result in more foreign and domestic investment as it provides them opportunity to completely manage and operate their businesses. This will influence the individual and residents to invest as well, especially in the small and medium enterprises, which is a great production chain”, said Qamsi.
The new law will be greatly beneficial for long-term investments in the important sectors such as manufacturing, high-tech industries, digital economy, entertainment, legal consulting services and engineering. This will enhance competitiveness, acquisitions and partnerships among existing local and foreign entities.
This will in turn offer new employment opportunities and high wages which will attract more people to the country. Qamsi added that, it is not only the private sector that is going to benefit from this law but the economy as a whole.
New amendment to the Commercial Companies Law has definitely brightened the future of investors and the country of UAE. This will bring in more investments into the country and UAE is hoping to be a global hub for businesses and investments.