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More jobs will be created in the UAE and foreign investments will increase by 35 percent as a result of the changes in the country’s Commercial Companies Law, Dubai Economy’s director general Sami Al Qamzi said on Sunday.
The UAE announced in November that amendments have been made to Federal Law No. 2 which will in effect allow foreigners to own 100 percent of businesses within the country. The changes were scheduled to take effect from December 1, 2020.
In a statement, Al Qamzi said the latest move will not only attract large companies and huge investments to the UAE, it will also entice individual investors and residents to invest, particularly in the small and medium enterprises (SME) sector.
“Allowing foreign nationals 100 percent ownership of commercial companies will lead to a significant increase not only in foreign and domestic investments, as these amendments allow full freedom for investors to manage and operate their businesses,” Al Qamzi said.
“Granting full ownership to foreigners and the subsequent influx of investments will enhance operational and administrative efficiencies not only in the private sector but also in the overall economy,” he added.
With higher influx of investments, Al Qamzi said, there will be more demand for workers with high skills and attractive compensation, thus further reinforcing the UAE’s position as a destination for talent.
He said the amendments will also boost the UAE’s ranking in the Global Competitiveness report, as well as in the World Bank’s Doing Business report.
“The amendments reflect the consistent efforts of the UAE to provide an excellent environment for doing business and they also represent a qualitative leap in positioning the country as a regional and global hub for investment and trade by developing the investment environment,” said Al Qamzi.
The World Economic Forum (WEF) ranked the UAE first in the Arab region and 25th globally in its Global Competitiveness Report 2019. The UAE’s position went up by two places since the previous edition of the report, which looks at the competitiveness of more than 140 economies around the world.
The WEF report also acknowledged the country’s high performance in terms of macroeconomic environment, sound product market and infrastructure.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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