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Structuring Alert: 
Positive list of activities open to 100% foreign-ownership released

Following earlier announcements that the UAE would open foreign ownership in mainland entities (up to 100%) and maintain foreign ownership restrictions in strategic sectors – the so-called “Negative List” – the UAE Cabinet approved 122 qualifying activities across 13 sectors composing the Positive List opened to up to 100% foreign ownership. The list notably includes the following segments :

  • Renewable energy
  • Space
  • Agriculture
  • Manufacturing
  • Transport & Logistics
  • Hospitality
  • Food services
  • Information and communications
  • Professional, scientific and technical activities
  • Administrative and support services
  • Education
  • Health care
  • Arts and Entertainment
  • Construction

Aside from a general obligation to adhere to the federal and local laws, and conduct the activity as reflected in the license, companies wishing to benefit from the increased foreign-ownership regime are subject a number of obligations, amongst which:

  1. Evidence of deposit of the company’s capital on the bank account;
  2. Appointment of one or more licensed auditors for a renewable period of one year (up to six consecutive year);
  3. Implementation of Emiratisation policies in the company (we expect further developments on this specific item);
  4. Ongoing collaboration with the Foreign Direct Investment (by notably maintaining regular accounts for the FDI Project, notifying the date of commencement of work or production date, providing information and statistics)

Your business is impacted by the Positive List? See our alert on how to avail the benefits of the FDI Law here

Originally posted by our member M/HQ