Connect with us

Hi, what are you looking for?

Top Story

UAE to issue 10-yr permits, allow foreign investors to own 100pc of company

The decision, taken by the UAE cabinet Sunday night, aims to lure “international investments and exceptional talent”, according to Dubai ruler Sheikh Mohammed bin Rashed Al-Maktoum/FILE

Abu DhabiUnited Arab Emirates, May 21 – The United Arab Emirates has announced plans to allow 100 percent ownership and visa incentives to foreigners, in a bid to attract investors to boost its slowing national economy.

The decision, taken by the UAE cabinet Sunday night, aims to lure “international investments and exceptional talent”, according to Dubai ruler Sheikh Mohammed bin Rashed Al-Maktoum.

The new measures come amid signs of an economic slowdown in the oil-rich Gulf state on the back of lower oil prices, with reports showing the vital real estate and tourism sectors of Dubai struggling.

The decision will allow foreign investors 100 percent ownership of companies, coupled with 10-year residence permits for them and their families, according to a cabinet statement cited by WAM news agency.

The measures will come into force by the end of 2018, the statement said.

The UAE leads all Arab countries in terms of foreign direct investment, attracting $11 billion last year — a jump of 22 percent on 2016 — according to the International Institute of Finance.

Although it is the most diversified and open economy in the Middle East, foreigners can only own up to 49 percent of companies unless they are established in special free trade zones.

The new measures also grant 10-year long residence permits to professionals in the medicine, science, research and technical fields.

Like other energy-rich Gulf Cooperation Council (GCC) states, foreigners working in the UAE must have their residence permits made by a national sponsor known as kafeel.

The International Monetary Fund earlier projected that UAE economic growth would fall from 3.0 percent in 2016 to 1.3 percent in 2017.

Advertisement. Scroll to continue reading.

Capital Economics, a London-based think tank, however has said that the UAE economy grew by just 0.5 percent last year.

It said that the economy of Abu Dhabi, the largest of the seven emirates making up the UAE and the richest in oil, shrank by 1.3 percent and 1.1 percent in the third and fourth quarters of last year, respectively.

In Dubai, sales and rents in the real estate sector slowed by five to 10 percent in 2017. The downturn is expected to continue through 2019, before picking up in 2020 when it will host the World Expo trade fair.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...