22nd June 2021
Sheher Bano - Middle East Alliance Legal Consultancy LLC
The Abu Dhabi Department of Economic Development has revealed a list of 1,105 registered commercial and industrial activities that are now open to partial or full foreign ownership in the emirate. MSI's Abu Dhabi law member Middle East Alliance Legal Consultancy LLC provides further insight.
The Department’s decision on foreign ownership of commercial activities comes in line with the Federal Decree-Law No. (26) of 2020 amending the provisions of Federal Law No. (2) of 2015 on the Commercial Companies Law and its amendments by adding articles that permit the establishment of 100% foreign-owned companies in Abu Dhabi.
The move follows the UAE’s step to allow full foreign ownership of onshore companies as of 1 June 2021.
This indicates that the department is keen to continue improving the business environment and remove any impediments to investors in Abu Dhabi specifically and the UAE generally. This decision of broadening the investment opportunities in foreign ownership reflects the keenness of the Abu Dhabi government to attract further foreign direct investments and to promote an open and resilient competitive business environment.
The emirate is also planning to deepen partnerships between the private and public sectors to increase the former’s contribution to the emirate’s gross domestic product (GDP). These activities are applied to companies licensed following the federal and local laws regulating business licensing controls according to the type of activity.” The department also said the existing companies can adjust their status provided they comply with the regulations.
This move indicates the keenness of the Abu Dhabi Government to attract further foreign direct investments and to promote an open and resilient competitive business environment. The Department also provides incentives and implements initiatives that help to increase the success rates of these enterprises and maintain their continuity in support of their sustainable growth and expansion.
Please refer to the decision and the list of activities via the Abu Dhabi Business Center website at www.adbc.gov.ae
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