The United Arab Emirates has relaxed and removed a range of limits on foreign ownership of companies, state-run media reported Monday.
The presidential decree that alters the corporate law helps the UAE “strengthen its leading position regionally and globally as an attractive destination for projects and companies,” state-run WAM news agency reported.
The reforms allow foreign entrepreneurs and investors to set up their own companies without involving local shareholders, the agency said. That's a welcome development for the country’s many expatriates who long had their ownership capped at 49% in firms outside free zones.
Other legal amendments remove quotas requiring that Emiratis hold the majority of board positions and serve as chairs for onshore companies. Companies that want to be publicly traded will be able to sell up to 70% of their shares instead of the current 30% limit.
State-linked newspaper The National reported the decree in further detail, saying the foreign ownership amendments would take effect within six months. Companies could take an entire year to start complying with the changes, it added.
