UAE foreign ownership plan hits the rocks
The Federal National Council (FNC) is reviewing the draft of a new companies law that would update legislation dating back to 1984.
At present, foreign firms can, generally, only operate in the UAE outside so-called "free zones" by partnering with a local entity in which they can only hold minority stakes.
The council rejected a clause in the draft law that would have given the UAE cabinet the power to let foreign parties own stakes of up to 100 percent in companies outside the free zones.
"This situation is very bad. These clauses are completely contradictory and could lead to foreign investments being outside the control of the state and its supervision, and this, in turn, could lead to destabilization of security," FNC deputy Ahmed Al-Zaabi told the assembly.
Economy Minister Sultan bin Saeed Al-Mansouri, who debated the law with deputies in yesterday session, said it had been agreed that the clause on foreign ownership would now be included in a draft foreign investment law being prepared.
"What we have decided is to move this clause to the foreign investment law because it is much more suitable, and to review some of the terms and conditions that will be applied," he said, according to Reuters. "They (FNC deputies) wanted more details," he said.
- Gulfnet collaborates on global cybersecurity platform
- Middle East poised to become an industry leader in 3D printing
- UAE Space Agency, Lockheed Martin ‘blast off’ with professional training program
- Show me the money: Lebanon addresses bank transfer delay problems
- Kuwait to receive French helicopters in $1.1B deal
- UAE may allow full foreign ownership of companies
- Foreign firms to be allowed 100 per cent ownership in Abu Dhabi's Special Economic Zones
- UAE to draft new energy policy
- Opening up, completely: UAE drafts law for 100% foreign ownership of firms
- Jordan’s Government Allows Foreign Investors Full Ownership of Mining Firms