The 100 percent foreign ownership law in the UAE which took effect in November this year will support large, established companies in the fashion sector, but is unlikely to benefit young business owners, according to Dubai-based fashion designer Rami Al Ali.
Speaking to Arabian Business, the owner of Rami Al Ali Couture said entrepreneurs require flexible commercial obligations such as lower set up fees, as opposed to 100 percent foreign ownership.
“The ownership law will help big players, but not necessarily the young entrepreneur. For them, 100% ownership is their least concern when starting a business. They need more support from the government in terms of fees,” he said.
“The commercial obligations they go through when they start their business is a big load for someone who is not earning enough to cover them,” he added.
Al Ali, whose clients include Jennifer Lopez and Beyoncé Knowles, said the law will attract foreign investors to the UAE, but not young entrepreneurs.
“It’s a bit difficult. It’s a very tempting [factor] for foreign investors to allow them to open a branch or move their head office operations [to the UAE] from a different part of the world. And Dubai is the perfect place for it, because the infrastructure the city provides also supports [fashion] businesses. But for young entrepreneurs, there should be a little bit more,” he said.
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