100 per cent foreign ownership


100 per cent foreign ownership

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.

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