Economy Minister: UAE’s new investment law to be ready by fourth quarter

The UAE will issue its long-awaited investment law by the last quarter of this year, and expects it will boost foreign investment by up to 15 percent, with most inflows coming from Asia and Europe, the Economy Minister, Sultan Al Mansoori, told The National on Monday on the sidelines of Annual Investment Meeting in Dubai.

The new investment law will liberalize sectors ranging from the manufacturing industry, including pharmaceuticals, to the services sector, the minister said.

“It will be this year, I can assure you. The latest will be Q4,” Mr Al Mansoori said. “I am optimistic. It is critical that we finish the investment law this year.”

A final draft of the law has been sent to the Cabinet for review and approval, before being forwarded to the legal committee in the Ministry of Justice, he said. The UAE received an estimated $10.3 billion in foreign investments in 2017, Mr Al Mansoori said.

“My expectation is we should probably hit $10.6bn to $10.8bn [in 2018],” he said. “It’s a marginal increase, but we have to take into consideration the current situation and atmosphere in the world right now. The environment is sometimes challenging.”

The new investment law, which paves the way for 100 percent foreign ownership in specific sectors approved by the government, up from the current 49 percent, is part of a raft of reforms aimed at lowering the dependence of the economy on oil revenue.

The UAE Government has once again taken a glorious move in the Year of Zayed. The move is highly commendable where His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, after a Cabinet meeting announced that the Investor in UAE can now have 100 percent ownership of their companies in the country along with, the investor visa in UAE for 10 years. The validity of the UAE Residence visa for professionals like doctors, scientists, entrepreneurs, and engineers shall be extended for 10 good years. The extension of the visa shall also be valid to the families of these expats. Five-year residency visa for students studying in the UAE and a special consideration has been extended to students who shall be doing exceptionally well in their academics. They shall be eligible for 10 years UAE residence visa.

1. What is the reason behind the UAE Government to change ownership and UAE residence visa rules?

The main motive behind the strategy of this new law, hundred percent ownership and ten years UAE residence visa by the UAE government is to make UAE a breeding cluster for exceptional individuals and a destination stop for investors. This new law has also been projected to boost the economy of the country and battle the dependence by oil in the region.

The investor in UAE will be able to control a company individually with an extended UAE residence visa for the expat along with the family. The investor in UAE shall be able to produce more investment in the country and make UAE their permanent home.

The UAE government hopes that with this initiative it shall attract Investors in UAE and drive tremendous and significant business evolution in the region.

1. When will 100% ownership and 10 years residence visa be applicable?

The decision of the UAE Government on hundred percent ownership and ten years residence visa shall be imposed by the end of the Year of Zayed, 2018. The Vice-President of the UAE has summoned the concerned departments to progress the initiative by the end of this year. He has also directed them to review the current UAE residence visa structure to provide an extension for students during the validity of visa for dependents after they complete their university studies and ensure their future residence in the UAE.

His Highness Sheikh Mohammed tweeted, “Our open environment, tolerant values, infrastructure, and flexible legislation constitute the best plan to attract global investments and exceptional talents. The UAE will remain a land of opportunities. It is the best environment to realize the dreams of humans and unleashes their exceptional potentialities.”

1. What do you need to know if you are planning to study, work or invest in the UAE?

Investors in UAE should be well aware of the business trend in the UAE. As they are based on businesses in the Mainland or in the Free Zones. If an investor owns a business in the UAE – in the mainland, the business can only be partially owned by him and the majority shareholder of a company is of a UAE National. If an investor owns a business in the UAE – in the Free Zone, the ownership can be retained at hundred percent depending on the policies of different Free Zones in the UAE But with the new law by the UAE government, they have announced that any investor in UAE will have hundred percent ownership of businesses either in the Mainland or in the Free Zone. UAE has always been a safe place for investment, but this new law has safeguarded the investor in UAE more than ever. Investors in the UAE engage millions of money for businesses hence, this ten years residency is sure to get more security and permanently settle businesses for their investment they make.

The validity of the UAE Residence visa for professionals like doctors, scientists, entrepreneurs, and engineers shall be extended for 10 good years and showcase their capabilities and building their stay in the country for a long run.

The visa shall also be valid to the families of the investor expats as well. Five-year residency visa shall be given for students studying in the UAE and a special consideration of 10 years UAE residence visa will be given to the students who will outshine in their academics.

1. How will Emirates Chartered Accountants Group help you to obtain an investor visa in the UAE?

Emirates Chartered Accountants Group will liaise with businesses in the UAE to obtain their investor visa in the UAE by providing executives, professionally dealing with PRO services who can effectively in line accomplish the procedures, rules, and regulations. A professional is always necessary to guide you to a pathway of different phases that you would come across and coordinate to progress and finish all the procedures successfully with precision.

For new investors in the UAE, Emirates Chartered Accountants Group will provide Company Formation Services in the Mainland as well as in the Free zone of UAE. The Company Formation Services for investors will allow them to obtain a business license as well as Investor visa for the investor and their families.

Emirates Chartered Accountants Group is one the leading business consultancy firm in the UAE, envisaging meticulousness in the services we provide. Our Company Formation Division has well experienced professional executives who are well versed with the rules and regulations of Company Formation laws in the UAE. For investors, our executives shall guide to set us a hassle-free process to set up businesses without any hurdles.