The outcome of the cabinet meeting, chaired by His Majesty Sheikh Mohammed Bin Rashid Al Maktoum on Sunday, May 20, 2018, is expected to significantly increase the confidence of foreign investors, creating a number of new investment opportunities in the UAE.
The result of the deliberations was the development of a plan for the implementation of a 10-year residence visa addressed to foreign investors and specialists, such as lawyers, doctors, engineers, researchers and scientists. The new legal regulations also cover family members of such entitled persons. Eligibility for the visa mentioned above will also apply to the best students.
His Highness Sheikh Mohammed Bin Rashid Al Maktoum stated: “Our open-minded environment, timeless values, intimidating infrastructure and progressive legislation are the best way to attract international investment and excellent talent. The United Arab Emirates will remain a land of opportunity, the best destination to realize people's dreams and unleash their amazing potential."
Amendments to foreign (corporate) ownership laws.
During the meeting, the Council of Ministers also announced new changes in the ownership system of companies based in the United Arab Emirates, which are controlled by foreigners. Refreshed legislation permits 100% ownership by international investors in certain business sectors.
The current legal conditions, which are set out in Art. 10 sec. 1 of the Federal Act No. 2 of 2015 (UAE Commercial Companies Law), requires that companies established by foreign investors have a UAE domestic partner who owns 51 percent of the shares in the company. The passing of the new law allows some foreign investors to own 100% sole ownership of their company registered in the UAE. This means that in practice the position of onshore LLCs has been equated to existing free zones and offshore entities.
