Foreign companies setting up in specialised economic zones or making major investments in strategic sectors such as tourism and manufacturing may obtain full equity ownership, said Abdullah Al Saleh, Undersecretary in the Ministry of Foreign Trade.
His comments clarified a doubt on the draft companies law approved by the UAE cabinet last week. The law will allow the cabinet to issue a resolution specifying the types of businesses and sectors in which a foreign partner may hold more than 49 per cent of a company's capital.
"Picking on what His Excellency mentioned, the law will not provide for a percentage, the law is silent on the statutory restriction; the limitation of 51-49 per cent is not addressed in this law. It has left it to the investment law to cover the percentages for certain businesses. But ... certain business can own the business 100 per cent, sectors like tourism, health care, education which are on top of the UAE agenda as key sectors for the economy this year," said Samer Qudah, partner and head of corporate structuring at Al Tamimi and Company.
His comments clarified a doubt on the draft companies law approved by the UAE cabinet last week. The law will allow the cabinet to issue a resolution specifying the types of businesses and sectors in which a foreign partner may hold more than 49 per cent of a company's capital.
"Picking on what His Excellency mentioned, the law will not provide for a percentage, the law is silent on the statutory restriction; the limitation of 51-49 per cent is not addressed in this law. It has left it to the investment law to cover the percentages for certain businesses. But ... certain business can own the business 100 per cent, sectors like tourism, health care, education which are on top of the UAE agenda as key sectors for the economy this year," said Samer Qudah, partner and head of corporate structuring at Al Tamimi and Company.
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