By Eudore Chand
Arab Technical Construction Company will have a capital of AED 400 million
The UAE Minister of Economy and Planning has issued decrees for the establishment of two new companies relating to the construction sector.
Economy and planning minister, Sheikha Lubna Al Qasimi, issued two ministerial decrees announcing the setting up of Arab Technical Construction Company as a public joint stock company and the International Real Estate Development Company, as a private joint stock company.
The ministerial decree stated that Arab Technical Construction Company should be established with a capital of AED 400 million to be split into 400 million nominal shares of AED 1 per share, which shall be fully paid-up in cash.
The decree also called for the setting up of International Real Estate Development Company, with a capital of AED 20 million to be split into 200 000 nominal shares of AED 100 per share. These too would need to be fully paid-up in cash. The announcement, carried by the official Emirates news agency, did not provide any further details.
Legal opinion in the UAE was divided as to whether a ministry, which regulates corporates and maintains the Register of Companies, could be empowered to floating its own publicly or privately operated companies.
KK Sarachandra Bose of Dar Al Adalah, who has been practicing law in the UAE for over two and half decades, told Construction Week that: “It is not entirely out of question. I am sure that the Ministry of Economy and Planning would have received proper authorisation from the UAE Cabinet to establish the two firms.”