UAE Cabinet moves to allow 100 per cent foreign ownership in 13 sectors could allow investors to look beyond free zones.
E-commerce and diversion massive winners, however, construction may spring a surprise
Dubai: permitting majority foreign possession in thirteen sectors — and covering 122 lines of business — may relieve the pressure on foreign businesses and investors to line up their operations among free zones. The ecommerce and high-value supplying services may be the immediate beneficiaries from such a transition, as would the diversion sector.
This will take away the requirement for foreign businesses to require a area license to possess full or majority possession in ventures like operational a web looking portal or an internet TV streaming service, as an example.
As several as thirteen sectors currently come back underneath the changes, however, brick-and-mortar retail isn’t a part of it, although e-commerce is. So, unless a full review of the Agency Law is formed, foreign investors/partners will solely have stakes of up to forty-nine per cent. (Even then, a number of the most important retail brands have stretched the probabilities of what is done, by winning exemptions to possess a hundred per cent closely-held retail facilities. as an example, Tesla operates while not a business organisation.)
Ecommerce and Entertainment Industry are the large winners
It is attention-grabbing that the UAE cupboard has enclosed diversion in a concert of the sectors. however, it highlights the very fact that potentialities within the diversion area can still be a chief focus of foreign investors.