Office Time
Mon-Sat: 8am to 8pm
The cabinet of UAE released a resolution under cabinet resolution No. 16 by March 2020 which determines a Positive List of the economic sectors and economic activities. A total of 122 categories are given full ownership in the UAE mainland under the law FDI – Foreign Direct Investment. This positive list of activities and economic sectors would permit almost all Foreign Direct Investment and they can own 100%, a full ownership.
Foregoing 2018, foreign investments can own up to 49% only in UAE Mainland under Law no. 19 of Federal decree law. This fell under the structure foreign investors can hold up to 100% shares but provided a big negative list of activities. So that, taking full ownership was a complete impossibility.
Moving towards the year 2019, the UAE has passed a law in which foreign investors can hold 100% ownership in the positive list of sectors in mainland entities outside free zones. This law by committee FDI persisted some unsatisfied criteria too. Manufacturing, agriculture, hospitality, transport & storage, food services, science and technology, information and communications, education, construction, healthcare and arts are the positive list covered areas in 2019.
With reference to UAE cabinet resolution No. 16, taken recently in 2020 gives 100% ownership to foreign companies which come under three main sectors
– Service sector | 52 activities
– Agriculture | 19 activities
– Manufacturing | 51 activities
These sectors have taken place in the positive list and are fully eligible to hold complete ownership with some conditions. This resolution has set some requirements and conditions for these companies to meet. They are contributions to research and technology, modern technologies, employee headcounts and other activities for the approval of license.
Some interesting activities in the new positive list are manufacturing sports goods, toys, consulting services, electrical equipment, photography, building constructions, education, health care, music bands and advertising agency.
UAE’s new cabinet resolutions provide more flexibility, more choices in share hold dealings and greater texture for ownership. FDI committee requires every emirate based firm to streamline licensing and its implementation structures.
Raju Menon, the chairman of Kreston Menon noted that, Even though manufacturing makes the backbone of any country, it didn’t take front row due to legal ownership restrictions and capital intensive project’s nature. Setting up a manufacturing unit and operating it is quite a difficult process. He also added, running up a unit in free zones can permit us 100% ownership but operating costs in free zones are expensive.
Managing partner of Chartered House Tax Consultancy – Mr. Anurag Chaturvedi commented, this full ownership system creates positive effects in job creation, productivity enhancement which results in less importation as goods are being produced in domestic economies. He also added, FDI will do compensation in Covid- 19 decrease in domestic investments and helps in kick starting the economy upliftments.
Due to the present economic effects by covid-19, the release of resolution no.16 of 2020 emerges as an initial welcome move for existing as well new investors and makes the UAE – A investment hub.
Agriculture sector
| ISIC4 | Business activity | Minimum Capital | Conditions and controls for foreign direct investment | |
| 1 | 01111 | Grain cultivation (wheat, corn, barley, etc.) | – use of modern technology- achievement of high added value- contribution in the research and development field- satisfaction of the requirements of the licensing entities in the state | |
| 2 | 01112 | Cultivation of bean crops | ||
| 3 | 0113 | Cultivation of vegetables, melons, roots and tubers | ||
| 4 | 0114 | Cultivation of sugar cane | ||
| 5 | 0116 | Cultivation of fiber crops | ||
| 6 | 0119001 | Flowers and Flower Buds Cultivation | ||
| 7 | 0121 | Growing of grapes | ||
| 8 | 0123001 | Fruits and Citrus Cultivation | ||
| 9 | 0124 | Growing of pome fruits and stone fruits | ||
| 10 | 0125 | Growing of other tree and bush fruits and nuts | ||
| 11 | 0126 | Growing of oleaginous fruits | ||
| 12 | 0127 | Growing of beverage crops | ||
| 13 | 01289 | Growing of aromatic, drug and pharmaceutical crops | ||
| 14 | 0161 | Support activities for crop production | 10 | |
| 15 | 0162 | Support activities for animal production | ||
| 16 | 0163 | Post-harvest crop activities | ||
| 17 | 0164 | Seed processing for propagation | ||
| 18 | 0210 | Silviculture and other forestry activities | ||
| 19 | 0240 | Support services to forestry |
Manufacturing sector
| ISIC4 | Business activity | Minimum Capital | Conditions and controls for foreign direct investment | |
| 20 | 10 | Manufacture of food products (except):1071- Manufacture of bakery products105 – Manufacture of diary products108 – Manufacture of prepared animal feeds | 15 | – use of modern technology- achievement of high added value- contribution in the research and development field- satisfaction of the requirements of the licensing entities in the state |
| 21 | 10 | Manufacture of beverages (except):1101 -Distilling, rectifying and blending of spirits1102 -Manufacture of wines1103- Manufacture of malt liquors and malt | 15 | |
| 22 | 14 | Manufacture of wearing apparel (except):14109 – Tailoring and Sewing of Wearing Apparel1410122 – Military Garments Manufacturing | 15 | |
| 23 | 15 | Manufacture of leather and related products | 15 | |
| 24 | 16 | Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials | 15 | |
| 25 | 2012002 | Straight or Complex Fertilizers Manufacturing | 15 | |
| 26 | 2013 | Manufacture of plastics and synthetic rubber in primary forms | 15 | |
| 27 | 2021 | Manufacture of pesticides and other agrochemical products | 15 | |
| 28 | 2022 | Manufacture of paints, varnishes and similar coatings, printing ink and mastics | 15 | |
| 29 | 2023 | Manufacture of soap and detergents, cleaning and polishing preparations, perfumes and toilet preparations | 15 | |
| 30 | 2029006 | Glues and Prepared Adhesives Manufacturing | 15 | |
| 31 | 2029008 | Manufacture of dyestuffs and pigments | 15 | |
| 32 | 2029009 | Textiles and Leather Finishing Used Chemical Materials Manufacturing | 15 | |
| 33 | 2029013 | Manufacture of photographic plates, films | 15 | |
| 34 | 2029019 | Gelatine and Its Derivatives Manufacturing | 15 | – use of modern technology- achievement of high added value- contribution in the research and development field- satisfaction of the requirements of the licensing entities in the state |
| 35 | 2029021 | Essential Oils Manufacturing (Essence) | 15 | |
| 36 | 2029022 | Extracted Natural Aromatic Products Manufacturing | 15 | |
| 37 | 2029023 | Aromatic Distilled Waters Manufacturing | 15 | |
| 38 | 2029024 | Matches Manufacturing | 15 | |
| 39 | 2029025 | Welding Powders and Pastes Manufacturing | 15 | |
| 40 | 2030 | Manufacture of man-made fibres | 15 | |
| 41 | 2100 | Manufacture of pharmaceuticals, medicinal chemical and botanical products | 15 | |
| 42 | 22 | Manufacture of rubber and plastics products | 15 | |
| 43 | 23 | Manufacture of other non-metallic mineral products | 15 | |
| 44 | 24 | Manufacture of basic metals (except):242 Manufacture of basic precious and other non-ferrous metals2432 Casting of non-ferrous metals | 20 | |
| 45 | 25 | Manufacture of fabricated metal products, except machinery and equipment (except)2529 Manufacture of weapons and ammunition | 15 | |
| 46 | 26 | Manufacture of computer, electronic and optical products | 15 | |
| 47 | 27 | Manufacture of electrical equipment | 20 | |
| 48 | 28 | Manufacture of machinery and equipment n.e.c. (except)28259 Tobacco Processing Machinery Manufacturing | 100 | |
| 49 | 29 | Manufacture of motor vehicles, trailers and semi-trailers | 100 | |
| 50 | 3011101 | Building of Commercial Vessels | 100 | |
| 51 | 3011103 | Ships and Floating Structures Sections Manufacturing | 100 | |
| 52 | 3011905 | Construction of Drilling Platforms, Floating or Submersible | 100 | |
| 53 | 3011906 | Construction of Floating Structures | 100 | |
| 54 | 3011907 | Building of Hovercraft | 100 | |
| 55 | 3012 | Building of pleasure and sporting boats | 15 | |
| 56 | 3020 | Manufacture of railway locomotives and rolling stock | 20 | |
| 57 | 3030 | Manufacture of air and spacecraft and related machinery (except):3030006 Military Ballistic and Guided Missiles Manufacturing | 100 | |
| 58 | 3090 | Manufacture of transport equipment n.e.c. | 20 | |
| 59 | 31 | Manufacture of furniture | 15 | |
| 60 | 3220 | Manufacture of musical instruments | 2 | |
| 61 | 3230 | Manufacture of sports goods | 3 | |
| 62 | 3240 | Manufacture of games and toys | 3 | |
| 63 | 3250 | Manufacture of medical and dental instruments and supplies | 20 | |
| 64 | 3290 | Other manufacturing n.e.c. | 3 | |
| 65 | 3312001 | Repair and maintenance of train engines | 15 | |
| 66 | 3312002 | Repair and maintenance of engines ship | 15 | |
| 67 | 3315001 | Repair and maintenance of ships | 15 | |
| 68 | 3315004 | Repair and maintenance of trains and railway equipment | 15 | |
| 69 | 3315005 | Maintenance and Repair of Aircrafts Engines | 15 | |
| 70 | 3315006 | Repair and maintenance of aircraft | 15 |
Service sector
| ISIC4 | Business activity | Minimum Capital | Conditions and controls for foreign direct investment | |
| 71 | 6910002 | Legal Consultancy Offices | As per the applicable regulations | – Not to advocate before the UAE courts.- Not to carry out any judicial procedure before courts, arbitral tribunals, and judicial and administrative committees.- Not to carry out attestation activities- To obtain the approval of the relevant entities in charge of licensing such activities in the State- To be a natural or legal person known for its excellence in this field |
| 72 | 692 | Accounting, bookkeeping and auditing activities; tax consultancy | As per the applicable regulations | Only permissible for tax planning for businesses and consultancies, preparing and reviewing taxes on businesses |
| 73 | 711 | Architectural and engineering activities and related technical consultancy | As per the applicable regulations | To be a natural or legal person known for its excellence in this field |
| 74 | 862 | Medical and dental practice activities | ||
| 75 | 75 | Veterinary activities | ||
| 76 | 620 | Computer programming, consultancy and related activities | As per the applicable regulations | To provide a technical team of no less than 5 specialized programmers by the end of the first year of the company |
| 77 | 72 | Scientific research and development | As per the applicable regulations | As per the applicable regulations |
| 78 | 7730-77300 | Renting and leasing of other machinery, equipment and tangible goods | ||
| 79 | 471 | Retail l sale in non-specialized stores (except Cooperative Societies 4711001) | ||
| 80 | 731 | Advertising | ||
| 81 | 732 | Market research and public opinion polling | ||
| 82 | 702 | Management consultancy activities | ||
| 83 | 712 | Technical testing and analysis | ||
| 84 | 331 | Repair of fabricated metal products, machinery and equipment (except ships or aircrafts and other transport equipment) | ||
| 85 | 8121-81210 | General cleaning of buildings | ||
| 86 | 742 | Photographic activities | ||
| 87 | 8292-82920 | Packaging activities | ||
| 88 | 823 | Organization of conventions and trade shows | ||
| 89 | 741 | Specialized design activities | ||
| 90 | 7490005 | Legal Translation Services | ||
| 91 | 7490006 | Translation services, movies and television programs | ||
| 92 | 7490012 | Translation Publications Services | ||
| 93 | 8299002 | Translation Services | ||
| 94 | 41 | Construction of buildings | As per the applicable regulations | Only permissible for large-scale infrastructure projects such as airports, highway roads, sport facilities and projects whose value exceed AED 450,000,000 |
| 95 | 42 | Civil engineering | ||
| 96 | 432 | Electrical, plumbing and other construction installation activities | ||
| 97 | 433 | Building completion and finishing | ||
| 98 | 431 | Demolition and site preparation | ||
| 99 | 439 | Other specialized construction activities | ||
| 100 | 7730009 | Construction and Building or Demolition Machines and Equipment Renting | ||
| 101 | 851 | Pre-primary and primary education | As per the applicable regulations | Public education excluded.To obtain the approval from the entities in charge of education to license such activities and to comply with such standards and controls as may be determined by them.To comply with the conditions and standards of school facilities and to ensure a high level of education quality |
| 102 | 852 | Secondary education | ||
| 103 | 853 | Higher education | ||
| 104 | 854 | Other education | ||
| 105 | 370 | Sewerage | As per the applicable regulations | As per the applicable regulations in this regard |
| 106 | 382 | Waste treatment and disposal | ||
| 107 | 3900001 | Pollution Consequences Treatment and Environment Protection | ||
| 108 | 861 | Hospital activities | 100 | Subject to the approval of the relevant authorities in light of the economic need taking into account the number of hospitals, medical and health centers in a specific area.Dubai Healthcare City is excluded from the above condition. |
| 109 | 869 | Other human health activities | 70 | As per the applicable regulations |
| 110 | 8211001 | Hotel Management | As per the applicable regulations | |
| 111 | 8211004 | Restaurants Management | ||
| 112 | 90009 | Creative activities and presentation of arts drama (theater) | Permissible only for theater activities and live bandsAs per the applicable regulations | |
| 113 | 9000104 | Music Band | ||
| 114 | 9000110 | Circus | ||
| 115 | 8130002 | landscape and gardening services | ||
| 116 | 9103-91030 | Botanical and zoological gardens and nature reserves activities | Permissible only for public garden services and specialized garden services. | |
| 117 | 5012-50120 | Sea and coastal freight water transport | As per the applicable regulations | |
| 118 | 5022001 | Internal Water Transportation of Goods | ||
| 119 | 7730016 | Commercial Ships Rental | ||
| 120 | 5222002 | Ship Piloting and Towing | ||
| 121 | 5222007 | Marine towing of boats and jet sk | ||
| 122 | New | Activities of holding companies in intellectual property |
As everyone hopes this will be a better investment structure.
Related Posts
May 2, 2024
What are the Legal Requirements for Starting a Business in Dubai
Starting a business in Dubai can be an exciting venture, but it’s important to understand…
April 27, 2024
How to Choose the Best Free Zone in UAE
Free Zones in the UAE have their own body of governance that has special tax,…
April 23, 2024
Startup Business Setup in Oman
The well-established infrastructure, high security, commercial connectivity, international networking stages and property rights promoted by…
April 23, 2024
VAT Registration in the UAE
VAT Registration in the UAE: As of 1st of January,2018, all companies that all under…
April 23, 2024
How to Set Up your Company in Dubai in 2 Days
Originally posted 2021-09-29 08:56:28.
April 23, 2024
Business Setup Process in Oman
Starting a Business in Oman, like other GCC countries involves certain steps that need to…
April 20, 2024
How to start a business in Oman?
Oman is a prime location and a future link between Asia and Africa. As such,…
