Lawyers in Dubai on new Foreign Direct Investment Law

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The year 2018 was indeed a Year of Zayed along with that it was the year of perpetual growth in UAE significant laws such as Bankruptcy Law, VAT Law and the New Foreign Direct Investment Law.
On 23 September 2018, HH the president of UAE issued Federal Law Number 19 of 2018 the Foreign Direct Investment Law or the Law moderating the constraints imposed on foreign ownership within UAE. Lawyers of Dubai believe that the right step in a positive direction to enhance UAE’s economy in the international market. The introduction of 100% ownership in several business sectors for on-shore entities is a significant decision to stride towards positioning UAE as the hub for international investors.
Understanding the Law According to Article 6 of the Law, the Cabinet of UAE will establish a Foreign Direct Investment Committee (FDI Committee) who will draft a list of areas wherein the Cabinet can approve a higher level of FDI. Subsequently, the Committee shall consider the following notable points prior to elucidating the areas: Nonetheless, the freedom of 100% ownership or high level of shareholding will not be granted to foreigners in certain restricted sectors which forms the part of the negative list as follows: How to apply? The Law under Article 10 provides for the procedures and guidelines needs to be followed to apply for increasing the foreign ownership under the permitted sectors.
Upon submitting the application offered by the authority, the committee shall review the same within 5 working days from the date of submission. If approved, the Department of Economic Development will issue the appropriate license and will record the application in the FDI registry.
However, if rejected, the applicant has the authority to raise an objection before dispute resolution established by the FDI Committee. Activities not in the List Another significant provision in the Law is for the activities which are not mentioned in the list.
Any prospective FDI project is not mentioned in the positive list, the applicant may submit an application post receiving the support of Local government, to the FDI Committee and Ministry of Economy. Remarks The wave of significant amendments and introduction of New Law is plausible to increase foreign direct investment within the UAE considering the forthcoming expo 2020.
The possibility of holding 100% ownership within UAE mainland companies will increase the number of on-shore companies and will remove the primary backdrop of ownership in onshore companies. The new Law is in harmony with the UAE Companies Law.
Moreover, it is a step further sets out the legalities of higher ownership. UAE's FDI is advancing to cultivate a progressively favourable environment which entices international investors and the new FDI Law further portrays the effort of the UAE government to strive towards the goal of enhancing economic position.
Law No. 19 of 2018 will support speculator certainty and thus allure FDI development in specific divisions explicitly focused on.
Source: Free Articles from ArticlesFactory.com Dr. Hassan Elhais, has made a name for himself as a renowned specialist in the fields of Family law, civil law, company incorporation, construction law, maritime law, banking law, criminal law, inheritance law, and arbitration.
He and his team in Dubai and Abu Dhabi cover the entire UAE and provide sound and accurate legal advice. They maintain the highest standards of integrity, confidentiality, and discretion.
Dr Elhais' goal is to ensure that a consistently high standard of service is undertaken and delivered by his team..