Recently Abu Dhabi launches a new FDI license allowing 100% ownership of a business. According to the Department of Economic Development (DED), the right applies to more than 122 business activities in the agriculture and service sectors. The government body said that “the license will attract overseas traders to Abu Dhabi and assist in achieving sustainable economic development.” The move is part of efforts to strengthen Abu Dhabi’s place as a global business hub.
The license includes 122 unique economic ventures related to the agricultural, industrial, and assistance sectors and purpose businesses with total capital raging amid AED 2 million and 100 million or higher. Abu Dhabi’s Department of Economic Development (ADDED) chairman said that the issuance of the Foreign Direct Investment (FDI) license is in line with the prerequisites of the Federal Law No. (19) of 2018 regarding Foreign Direct Investment (FDI) and as part of the department’s attempts to more strengthen positive investment climate and thereby get sustainable economic development in Abu Dhabi.
Al Shorafa noted that ADDED is assigned to boosting the local investment ambiance and enhancing the Abu Dhabi economy’s competitiveness through policies that allow more investment chances in several non-oil sectors. It also looks to enhance the emirate’s legislative atmosphere, making sure the perfect way to protect overseas entrepreneurs’ rights, by the directives of the Abu Dhabi Government, in attracting foreign direct investment to the emirate.
The new license greatly strengthens Abu Dhabi’s position as a global hub for investment and ease in doing business, adding that organizing the list of investment possibilities within several economic sectors and activities applicable for overseas investment will positively impact the emirate’s investment ambiance.
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The FDI license would motivate traders to encourage business development for overseas companies as well as attract businesses in technology and advanced industries that contribute to the emirate’s economic diversification policy. The implementation of the FDI law in Abu Dhabi contributes to getting various objectives such as expanding the base of overseas investment, enlarging the size of capital flows, boosting and diversifying local production, and expanding the emirate’s exports goods and services.
Traders can secure the new FDI license through ADDED’s Abu Dhabi business center by getting approval after completing needed documentation and paying fees, as per the Rashed Al Balooshi, Undersecretary of the Department. The department said some activities that do not conform to FDI license conditions are subject to approval through the UAE Cabinet.
The activities which are not covered by the new license are petroleum exploration and production, security and military sectors, activities related to investigations, ground, and air transportation services, actions related to studies, banking and finance activities, weapons manufacturing, and medical retailing such as private pharmacies.
Ras Al Khaimah, too started providing full ownership to overseas traders. A new formation structure introduced by the Ras Al Khaimah Economic Zone (RAKEZ) permits 100 percent overseas ownership of companies in the emirate, enabling investment in several sectors, such as industrial, agricultural, and help sectors when keeping and managing all shares in non-free zone companies.
Also check, UAE companies plan to cut workforce