New Visa and Investment rules in UAE
The UAE has announced sweeping new reforms to allow 100 per cent foreign ownership in companies and long-term residence visas for skilled and creative employment categories.
The decisions, made during a Cabinet meeting on Sunday chaired by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, will reinforce the UAE’s position as a top destination for international investors and global talent.
What are the new rules for 100% foreign investment?
Under the new decision, foreign companies will be allowed to own 100 per cent of their business in the UAE outside free zones — a major departure from the current practice of requiring an Emirati partner with a majority stake. Currently, only companies based in various free zones around the UAE were eligible for the 100 per cent ownership rule. Further, foreign investors establishing a business or simply investing money in the UAE will now be eligible for a visa of up to 10 years. A range of businesses — from start-ups to city-based trades to knowledge economy companies — will be the biggest benefactors from the decision. This will also attract new capital infusion into the UAE economy from investors around the world.
When will these measures come into effect?
Sheikh Mohammed has directed the Ministry of Economy to implement the resolution and follow up on its developments, in coordination with all concerned stakeholders. He has asked for a detailed report to be submitted in the third quarter of this year, and the measures will come into force by the end of 2018.
How did the UAE markets react to the news?
Markets in the UAE rallied on Monday on the news, led mainly by property stocks: Shares of DAMAC and Aldar Properties both jumped over one percent. Traders said the Cabinet decision will give comfort to investors in the country, especially property owners.
Report by gulfnews.com