Business | Economy
RAK allows 100% expat ownership of business units
The Ras Al Khaimah Department of Economic Development has approved a system granting expatriates 100 per cent ownership of their projects with no need for an Emirati sponsor.
- By Nasouh Nazzal, Staff Reporter
- Published: 00:13 August 22, 2007
- The expatriate needs an Emirati service agent who does not bear any legal responsibility and his name will be mentioned only at the bottom of the licence.
- Image Credit: Gulf News Archive
Ras Al Khaimah: The Ras Al Khaimah Department of Economic Development has approved the 'service agent' system in commercial licensing, which grants expatriates 100 per cent ownership of their projects with no need for an Emirati sponsor.
The move comes amid the ongoing relaxation of investment rules as part of the economic liberalisation in Ras Al Khaimah, in its bid to attract massive foreign investment.
Hamad Hassan Al Shamsi, the department's deputy director said the new system will come into effect from September 1, when expatriates will no longer need Emirati sponsors for their commercial projects.
"The commercial licenses will be officially registered in the names of the expatriates themselves not in the names of the Emirati sponsors," he said.
He stressed that this system is expected to boost the emirate's economy and increase the number of commercial licences and projects.
Ali Ahmad Al Beloushi, who heads the Record Registry and Licensing Section at the department, said that the Emirati sponsor had earlier been legally responsible and held all the legal consequences for the commercial projects and licenses he sponsors, but this system will be valid in RAK no more.
Service agent
The expatriate, however needs an Emirati service agent who does not bear any legal responsibility and his name will be mentioned only at the bottom of the licence.
He added that the existence of an Emirati service agent in the commercial licence was demanded by other departments, which require an Emirati to run other relative procedures for commercial projects.
Al Beloushi said a total of 18 commercial licences have not been included in the service agent system and still require an Emirati sponsor to be granted the necessary commercial licences.
Have your say
Will this help boost foreign investment in Ras Al Khaimah? What additional measures would further aid the development? Tell us at letter2editor@gulfnews.com or fill in the form below to send your comments.
Your comments
Well done. I would like to praise the Ras Al Khaimah Department of Economic Development and Government of granting expatriates the opportunity to own their own projects. I, a South African citizen, was on holiday in the UAE last year and I will also be travelling to the UAE in September this year. It is my dream one day to come to the UAE and open my own business. I hope other parts of the UAE will follow suit.
Bharath
Pietermaritzburg,South Africa
Posted: August 22, 2007, 10:12
I think this is a good move from department of RAK Economic development. It will play a vital role in economic liberalisation.
Junaid
Dubai,UAE
Posted: August 22, 2007, 09:59
Which are the categories of licenses issued to have 100 per cent ownership.
Leslie Neil
Dubai,UAE
Posted: August 22, 2007, 09:13
Interesting article on business ownership and local partnership laws in the UAE.
Paul
Dubai,UAE
Posted: August 22, 2007, 08:43
What are the 18 licenses NOT to be included? Where can I get a list of the commercial license list of activities?
Philippa
Dubai,United arab emirates
Posted: August 22, 2007, 08:42
Yes definitely. It will boost investment. But it must be particular to big commercial business.
Andrew
Dubai,UAE
Posted: August 22, 2007, 08:20
This is a welcome step to bring RAK on the global map. It will encourage the expats, specially Indians, who had to search for a good local sponsor earlier, to do business. Thanks RAK!
Sagar
Ras Al Khaimah,UAE
Posted: August 22, 2007, 07:32
I don?t think this will really help much in increasing the inflow of investments. These improvements may only be little good for the entrepreneurs but no match to the international standards. If they want real flow of investments they should open their doors wider and create more flexible/friendly laws. Present laws and systems are found nowhere on earth apart from the GCC nations!!
Qamar
Toronto,Canada
Posted: August 22, 2007, 01:32
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