Proposed changes on foreign ownership may hit free zones

Rents in economic free zones may drop in response to proposed legislation that would relax foreign ownership requirements elsewhere in the country.

Free zones across the UAE have proved an effective tool in attracting foreign companies, which have been drawn by the promise of tax breaks and 100 per cent ownership of businesses they establish.

At the moment, foreign firms setting up outside these zones must have an Emirati as a sponsor and are limited to a maximum 49 per cent ownership of their businesses.