Articles
UAE Ownership laws revised
Source: Gulf
News, 14th September 2009
The Cabinet is finalising the industry law that will allow 100 per
cent foreign ownership in industries.
The Cabinet is also considering raising the foreign ownership
ceiling from the current 49 per cent, a top official said.
Sultan Bin Saeed Al Mansouri, Minister of Economy, said the move
is aimed at boosting foreign investment.
"The law to allow 100 per cent foreign investment is ready,
but still under study and should be finalized within the next two months. We
are especially looking into certain sectors such as hi-tech and hi-value,"
the minister told Gulf News during
an inspection visit to the Abu Dhabi Co-operative Society to ensure prices are
reduced on essential goods.
He did not, however, give any indication of the possible limit of
foreigners' stakes in private companies. "Anything is possible," he
said.
Even though the minister said sudden change can alter the agenda
at the last moment, many foreign companies and investors are interested in
moving to the UAE, which he said will help contribute to the UAE's gross
domestic product (GDP).
"This is one of the Abu Dhabi government's visions, to
encourage foreign investment, but most importantly we need to create the right
environment and make sure everything is well planned and studied first,"
he said.
He said the government would like to increase the contribution of
non-oil sectors which make up 64 per cent of the UAE's GDP, some of which
include small- and medium-sized businesses and various industrial sectors.
Reda Musallam, a business analyst, said that introducing a 100 per
cent foreign investment independent of an Emirati partner is a very important
step for the UAE economy, and the beginning of a new era.
"Liquidity will increase for sure, which will help increase
the UAE's GDP. This decision will benefit all the economic sectors in the
country and will also promote business affairs with the outside world without
obstacles," the expert told Gulf News.
The decision, he added, was not easy, because it involved the
approval of all the concerned parties in the seven emirates.
"I hope this decision is applied by the end of the year,
since it will benefit all of us," Musallam said.
The annual inflation rate in the UAE in 2009 will be around 3.5 to
4 per cent, down from 12.3 per cent last year, Al Mansouri said.
"[A figure of] 3.5 to 4 per cent - that is what we are
expecting this year," Al Mansouri told reporters yesterday.
The minister said, this will not increase further.
