Arabian Business' Shruthi Nair explains the new 100 percent foreign wwnership Rule. Traditionally, 100 percent foreign ownership of a UAE company was only possible under two circumstances: when setting up in a free zone or when establishing a professional services company.
But now, following a cabinet meeting last year, the UAE will allow 100 percent foreign ownership of companies. The news of 100 percent foreign ownership of mainland UAE businesses looks set to bring about a host of benefits to overseas investors in the Emirates.
Firstly, it removes entirely the daunting prospect of allowing a third-party to hold a large stake in your business – something that can put foreign entrepreneurs off setting up in the UAE. Secondly, overseas investors new to the Emirates could get straight down to business, without the need to canvas for an Emirati company or individual to act as a partner.
(Source: Arabianbusiness.com YouTube channel)