100% Foreign Ownership of Companies in the UAE
The UAE government has announced important changes to the federal Commercial Companies Law, the most significant is related to the foreign ownership of mainland companies. This will grant foreign investors the full ownership of share capital in companies carrying out certain activities specified to that effect by the competent authorities. This means that foreign investors’ shares will not be limited anymore to a maximum of 49% like before, but can be up to 100% instead.
100% Foreign Ownership of Companies in the UAE
Introduction
Federal Decree-Law No. 26 of 2020 has amended or repealed over 50 articles of the UAE’s Federal Law No. 2 of 2015 on Commercial Companies (the “CCL”), the most significant of whilch is authorizing 100% ownership rights to foreign investors in mainland companies carrying out certain economic activities as specified by the relevant authorities of the UAE government.
The new privileges and incentives, given to foreign nationals in mainland UAE, are expected to increase the flow of foreign capital and enhance diversification in the state's economy. The quest towards that objective began in 2018 with the formation of committees at the Ministry of Economy (in coordination with the Council of Ministers) mandated to propose policies allowing foreign investors in some economic sectors to own more than 49% in mainland companies.
