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New Investment Law will boost up the foreign businesses in the UAE

New Investment Law will boost up the foreign businesses in the UAE

Have you been hoping to expand your business operations in Dubai but the limitations of the current foreign investment law hold you back? Then this is the right time to start planning your company formation.

The Current Investment Law of Dubai LLC Formation

Currently, when a foreign investor wants to form a local company (LLC) in Dubai, the current UAE Investment Law allows them to own up to 49% of the company only. At least 51% of the company ownership must be given to the UAE nationals. This limits the extent of foreign investment in the country because of inhibitions of shared control. But this situation is expected to take a favorable turn by the first quarter of 2018 when the new investment law will be enforced.

Implication of the new UAE Investment Law

The draft law aims to upgrade the UAE investment environment and encourage foreign direct investments into different segments of the UAE economy. It will allow foreign investors to increase the percentage of ownership up to 100%. You will be able to be in complete control of the company and easily enter the markets and compete with regional companies in the industry. Business setup in Dubai is sure to rise with the onset of this law. The approaching change, which is intended to radically change the investment scene of the UAE, is broadly anticipated to provoke the rise of foreign investments, particularly into the non-oil sectors.

Advantages of the New UAE Investment Law for You

  • With complete ownership, you will be able to open a retail business in the famous malls of the UAE, factories and any other type of commercial activity.
  • You will be operating your business without having to share profits or limit business decisions because of restricted control of the business.
  • The New UAE Investment Law will allow you conduct duty-free trade within the Gulf as per the Free Trade Agreement within the GCC.
  • As a foreign investor, you will be able to enjoy higher returns because of the reduced administration costs and much more.
  • Increase of security of your investment.

What to do next

The highly anticipated UAE Investment Law will come into force in 2018, till that time we advise you to make an in-depth analysis of the business opportunities in the UAE and get ready for company establishment to take the most favorable positions before your competitors will grab them.

Whether you are a startup or an established business, we are here to become your professional business consultant in the UAE and provide you with exceptional company formation, tax advisory, administration, accounting assistance to make sure that you go through all processes of business setup smoothly and with the least of hiccups.

CONTACT US +971 55 147 9576 or [email protected] whenever you need an advice or when you are ready to make your dream come true and establish a business in the UAE.