Abu Dhabi: The UAE investment law which allows one hundred per cent ownership to foreigners is in the final phase of being issued, a top government official said on Wednesday.
Juma Al Kait, assistant undersecretary for foreign trade affairs, ministry of economy said the new law will help the country to attract fresh foreign investment.
“The new law is the final stages of being issued. We think this will be a step forward to attract investments into the country.” He said the ministry expects the law to be issued this year.
He said certain criteria and conditions will be incorporated in the law to encourage new technology and environmentally friendly projects.
“There are some sectors which need to be developed as per the UAE vision. They will be mentioned in the law.” Some sectors will also be considered on a case by case.
He did not specify which sectors would be included in the law.
Al Kait was speaking at the AmCham Mena Regional Council Conference in Abu Dhabi.
At the moment foreigners cannot own more than 49 per cent in any UAE firm other than the ones incorporated in special free zones.
He said the government will continue to undertake reforms in trade and investment in order to make it attractive for investors.
“Our policies are open to all. We receive investors, listen to their feedback and reflect it in laws and regulations with amendments.”
Cash reserves
Gulf countries are pushing for foreign investment and diversifying their economies as oil revenues decrease due to drop in oil prices. Oil prices have fallen by about 50 per cent over the past year.
Though the UAE is unlikely to be affected for some time due to massive cash reserves, other Gulf countries such as Oman and Bahrain are likely to face budget deficits.
Matthew E Byrd, chairman of AmCham Abu Dhabi and Chair of AmCham said the Mena (Middle East and North Africa) region accounts for less than 5 per cent of total US trade.
“We are convinced that this trade number could skyrocket if business leaders followed long term strategies and not daily headlines in accessing these lucrative markets.”
Joshua M. Kram, Director of Turkey and Middle East Affairs in the US Chamber of Commerce in Washington said there is a huge interest among US companies about the region.
“We are trying to identify where the opportunities are and how to help the companies. Our Middle East Commercial Centre is facilitating trade and investments.”
