The change in company law comes into force on 1 June
DUBAI: From next month, the UAE will allow foreigners to start an enterprise without an Emirati shareholder as a regional race for heating investment. real estate agent
The change that will take effect on 1 June could also boost the demand for commercial and residential property, the brokers said.
"The amended Commercial Companies law aims to boost the competitive edge of the country and is part of the efforts to enhance business by the UAE governments," said Minister of the Economy Abdulla bin Touq Al-Marri in a statement to the UAE's official WAM news agency.
Companies previously needed either a shareholder of Emirati or a dedicated corporate park, known as the free zone.
The announcement comes with the Gulf governments intensifying their efforts to attract foreign investors. Saudi Arabia said earlier this year that, unless it had a Kingdom headquarters, it would stop signing contracts with foreign firms from 2024. The neighboring UAE also announced several additional incentives to encourage companies to establish national bases.
It was not immediately clear how the UAE will seek to attract new tenants in many of its major free areas, but some of them are already focused.
On Wednesday, the Dubai Free Zone Authority (DAFZA) stated that business licenses can now be granted by crypto-asset traders in a new agreement supporting the mainstream use of blockchain technology. The free zone agreed to allow the regulation, offering, issuance, listing and trading of crypto-assets within DAFZA with the Securities and Commodities Authority (SCA).
Analysts said the move could help to boost demand for residential and commercial homes by setting up a store in the Emirates.
"Facilitating future demand for residential and commercial properties across the country continues with key policy initiatives across the UAE," said Faisal Durrani, Head of Regional Research at Knight Frank. "The UAE has unlocked its potential as a key global contender (for) business headquarters, formerly confined to free zones across the country, with this landmark change. Fresh initiatives such as 'Dubai Next' will certainly help to make cities such as Dubai an attractive option for global startups looking for a dynamic place to launch.' The pair made the disclosure at the Saudi stock exchange in separate statements on Sunday.
In the midst of the wave of fusion and acquisition in the Kingdom and wider Gulf, companies are repositioning themselves in the post-pandemic world.
Dur develops hotels, restaurants, leisure centers and travel agencies, owns and manages them. In addition to developing residential, hotel and commercial buildings, Argaam reported, it also offers services to Umrah pilgrims.
Assila Investments Co., 27.14 percent, PIF, and Mohamed Ibrahim Mohamed Al Issa, 12 percent of its major shareholders, said the financial website.
Taiba is active in the fields of immobilization, architectural and electrical contraction, maintenance and operation, agriculture, industry and mining.
Asilah Investment Co. with 16.73%, Mohamed Saleh Hamza Serafy (15.55%), and Mohamed Ibrahim Mohamed Al Issa (7.41%), Argaam said its major shareholders.