New legislation a step in the right direction

Foreign investors are attracted to a stable and clear legislative and policy environment and which allows them to freely and safely invest their money and repatriate their profit and capital, as necessary.

The UAE provides such an environment, although there are a few restrictions which must be lifted to increase the flow of foreign capital into the country at a time when there is fierce competition for international investment. Now, the Minister of Economy, Sultan Bin Saeed Al Mansouri, has said he expects new laws that will protect the interests of foreign investors and increase their ability to invest in the UAE to be enacted by the end of the year. This is good news for the UAE as much of its economic success in recent years has been because of its commitment to maintaining a free and open market.

The new laws should provide further legal protection for foreign investors and create incentives for them to put more money into the country. There will also be legislation clearing the way for 100 per cent foreign ownership of companies in the UAE. Until now, foreigners were prevented from having full ownership of companies outside of designated free trade zones. The new law will allow foreign companies and investors to take full advantage of the economic infrastructure of the whole of the UAE and lift restrictions which prevent them from investing freely in the country.

Combined with the UAE's economic infrastructure and human capital, the new legislation will make the country a more attractive destination for foreign direct investment and increase its international competitiveness.

The new legislation has been a long time in the making and there have been promises before that its implementation is imminent. This time, given the intense global competition for capital, foreign and resident investors must not be left waiting any longer than is absolutely necessary.