The Department of Economic Development is presenting a professional license in Abu Dhabi to allow foreigners 100% ownership of companies related to 604 activities because the emirate looking to allure more investors and boost its economy.
The license is easier to adjust or set up, which in turn would streamline business practice in Abu Dhabi, undersecretary of Added, Rashid Al Blooshi said.
Abu Dhabi has launched many initiatives to increase the ease of doing business and its competitiveness at a global level because it prepares for its next fifty years of economic development.
.@AbuDhabiDED has launched the Professional Licence, permitting 100 per cent foreign ownership of businesses operating across 604 professional services, such as training and consultancy. The move will further support SMEs and enhance ease of doing business in the emirate. pic.twitter.com/54h3TQwhiJ— مكتب أبوظبي الإعلامي (@admediaoffice) August 9, 2021
Earlier this month, a week after Abu Dhabi cut business establishment charges by over 90% to further support the private sector, the requirements for setting up a business were reduced by 71%.
The current professional license is convenient for new investors due to its ease of issuance and its cost, Sated Added.
A local agent as a service agent, who would be liable for handling licensing needs, is needed for businesses to take advantage of this license in case there is no Emirati partner. Added would also issue a service agent form of agreement to identify the rapports between all the partners.
Applying for a professional license by an investor can open a commercial branch also “If the business activity is consistent with or complements the professional activity”, said Added.
Existing businesses can delight from this decision by adjusting their position from a commercial to a professional function while sustaining their registered number and incorporation date.
Added defines professional activities as practiced by a specialist investor within their experienced sector and that matches their professional or academic qualifications.
Added’s chairman, Mohammed Al Shorafa, told the National that the economy of Abu Dhabi is expected to develop between 6% and 8% more than the next 2 years, driven by government spending, foreign direct investment, and financial services.
Added issued last year, a foreign direct investment license for investors, permitting 100% overseas ownership of companies with a capital of Dh2 million ($544,588).
The FDI license comprised 122 economic activities in fields comprising agriculture, services, and industry.
Although, activities like petroleum production and exploration; air transport and ground transport services; invest9ii9gation activities, military and security fields; financing and banking activities, weapons manufacturing; and medical retailing like private pharmacies, are not comprised by an FDI license.
Abu Dhabi identified last year, a list of investment possibilities in the sectors comprising food protection, health care, and energy that are started for overseas investors.
Mr. Al Shorafa stated the move would encourage investors, spur business growth for overseas companies, and allure businesses in the sector of advanced and technology industries, contributing to the pressure of emirate for economic diversification.