Dubai: It is no longer mandatory to have an Emirati partner or to specify a fixed quota ratio for him.
The latest guidelines issued by Dubai Economy also state that there are no additional fees, guarantees or capital requirements for full foreign ownership.
He further explained that a reduction in the UAE partner’s percentage share of 51 percent or its withdrawal from the partnership is “possible under the legal procedures followed”.
However, the status of existing business licenses that include an Emirati partner remains unchanged. This is in accordance with the Memorandum of Association (MOA) and the decision of the partners.
The Dubai Economic Department also explained that although it is not possible to convert the legal form of a company from “limited liability company” to “sole proprietorship” under a foreign name in accordance with applicable law, the license can be transferred to a single limited liability partnership.
Full ownership does not apply to commercial agencies, as they are governed by the Law on Commercial Agencies. Branches of foreign companies do not need an Emirati agent.
Invest in Dubai
To obtain a license or modify the memorandum of association, investors can connect to “Invest in Dubai”. The platform can be used for initial approvals, reservation of trade names and license renewal services.
A big step for the United Arab Emirates
The strategic decision of full ownership for foreign investors enhances the UAE’s investment attractiveness and advanced position on global business prospects, said Dubai Economy. The move will accelerate the UAE’s economic recovery and build on the gains the country has made so far. It will also help further improve Dubai’s already high ranking in international investment indicators and major global indices related to ease of doing business and business expansion.
A total of 59 investors in Dubai have already taken advantage of the new decision. Business activities in which full ownership was sought after include general trading, subcontracting, jewelry, gold, pearls, luxury watches, food, as well as the trade in cars and trucks. In the industrial category, full ownership was sought in the metals and construction, flooring, building materials, food, water production and paints sectors. A kindergarten, elementary and middle school, and hotel have also claimed 100% ownership.