The United Arab Emirates is moving ahead with a major overhaul of corporate law to introduce unified accounting standards for all businesses, amend guidelines for share offerings in local capital markets, and extend the possibility of foreign majority ownership of companies nationwide.
Currently, foreigners are not allowed to own more than a 49 percent stake in businesses outside specially designated free zones and only large — usually public — businesses are held to international accounting standards.
The planned changes, which are the biggest in nearly 30 years and took four years to prepare, would widen access for outsiders to the internal U.A.E. market and may encourage more investment internally. While no date has been set for final approval of the new law, analysts say its adoption by the federal cabinet in the first week of December was a significant step forward.
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