Sole Proprietorship Company Formation in Dubai

The UAE Government has always taken a positive stance towards powering the growth of the national economy. The Government has taken many measures to attract investors by opening up many free zones and tax exemptions to many industries to support this. Recently a revolutionary decision was approved by the Cabinet meeting chaired by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, to approve 100 percent foreign ownership in 122 economic activities across 13 sectors.

The main activities eligible for up to 100 percent foreign ownership are renewable energy, space, agriculture, and manufacturing industry. The decision will impact the economy as a whole as it offers investors an opportunity to acquire various shares in a number of economic activities like the production of solar panels, power transformers, green technology, and hybrid power plants. This can lead to a surge in utilising renewable sources of energy.

Foreign ownership is also allowed in industries like transport and storage, where investors can own projects in the field of e-commerce transport, supply chain, logistics, and cold storage for pharmaceutical products.

The Cabinet’s decision further extends to hospitality and food services, information and communication, professional, scientific and technical activities. This allows for ownership in laboratories for research and development in biotechnology. The list also includes administrative services, support services, educational activities, healthcare, art and entertainment, and construction.

As per the Cabinet’s decision, the local governments will determine the ownership percentage of foreign investors in these activities. The main goal of the Government is to stimulate, activate and facilitate businesses. The administration wants to open and expand to new economic sectors as well as attract new investors and talents to strengthen the global competitiveness of the national economy.

Originally posted 2021-09-29 11:14:18.