Business & Money | Friday 25 May, 2018 12:09 am |

The UAE’s new law enabling foreigners to own 100 percent of onshore companies will be limited to specific industries deemed essential to the country’s economy, according to a senior government official.

Abdulla Al-Saleh, undersecretary for foreign trade & industry at the UAE’s Ministry of Economy, told Bloomberg that a final decision had not been taken on what industries to include in this week’s landmark decision to allow foreigners to fully own non-free zone companies.

Al-Saleh said a committee — made up of representatives of the country’s seven emirates — would make a decision on which industries to initially include, and would add further industries and companies in the future.

The law’s goal “is to attract quality investments and expertise and isn’t necessarily about the size or number of investments,” he said in a telephone interview with Bloomberg.

The UAE’s Prime Minister and Ruler of Dubai Sheikh Mohammed bin Rashid Al-Maktoum said the ownership changes — as well as longer visas for selected students and selected professions — would be put implemented by the end of the year.

The move to extend foreign ownership has been welcomed by economists, even as key details have yet to be announced.

“The eligibility and the extensiveness of the investment liberalization will be critical to gauge the support to the economy,” Monica Malik, the chief economist at Abu Dhabi Commercial Bank, told Arab News on Thursday.

“Recent official comments indicated that the area of focus will likely be on factors such as job creation and technology transfer.”
Such a theme is in keeping with the UAE’s move to allow visas for up to 10 years for specialists working in medical, scientific, research and technical sectors, alongside 5-year student visas and 10-year visas for “exceptional” students.

Longer visa terms are predicted to especially impact the local real estate sector, which has languished in recent years thanks to increasing supply and sluggish economic conditions.