On 19 May 2021 the UAE Minister of Economy, His Excellency Abdulla Al Marri, announced that amendments to the Companies Law in respect of foreign ownership will be implemented from 1 June.

The amendments to the law allow foreign, non-UAE national, investors to wholly own companies ‘onshore’ in the UAE, unless a restriction exists and the company carries on what is called a ‘strategic impact’ activity.

There have been a number of interesting developments since the 19 May announcement:

Abu Dhabi

The Abu Dhabi Department of Economic Development has announced a list of licence activities which may be conducted by a company which is wholly owned by foreign investors in Abu Dhabi. There are over 1,100 licence activities included on the list from a range of sectors of the economy. Amongst other things, it was interesting to read that:

• the list contains an extensive range of manufacturing activities,
• building and other contracting activities are included in the list,
• repair, maintenance and installation activities feature across a range of fields,
• e-commerce is included,
• a range of rental and leasing activities are included,
• the list includes a number of marketing and events related activities,
• the licence activity of ‘onshore and offshore oil and gas fields and facilities services’ is included,
• hospitals are included in the list, and
• trading activities are not included in the list.

Dubai

The Dubai Department of Economic Development has issued an announcement stating that, amongst other things:

• there will be more than 1,000 commercial and industrial licence activities which it will be possible for a company which is wholly owned by foreign investors to carry on,
• ‘professional activities’ will be restricted from foreign ownership,
• no specific capital requirements will be imposed on companies which are wholly owned by foreign investors, and
• foreign companies operating through a branch office will not be required to appoint a UAE national agent.

Based on announcements from the Dubai Department of Economic Development, the list of ‘strategic impact’ activities in which foreign investment will not be permitted includes:

• security, defence and military activities,
• fisheries and associated services,
• certain financial institutions,
• printing banknotes,
• communications,
• Hajj and Umrah services, and
• centres for memorising the Holy Quran.

It's an interesting time to be advising on FDI and corporate structuring in the UAE...