Before the new law was introduced, foreign investors were required to have a local partner. The local partner would hold at least 51% of the shares in any company operating in the UAE. This meant that foreign investors were limited in the amount of control they could have over their own businesses. However, the new law allows foreign investors to own 100% of their businesses. This gives the investors complete control over all aspects of their operations.
Attractive to Foreign Investors
This move is a game-changer for Dubai for a number of reasons. Firstly, it will make the Emirate even more attractive to foreign investors. Who will now be able to set up businesses in Dubai with the same level of control as they would have in their home countries. This will make Dubai a more competitive destination for foreign investment and is likely to lead to an increase in the number of businesses set up in the Emirate.
Diversify the Economy
Secondly, the new law will help to diversify the economy of Dubai. Currently, the Emirate is heavily reliant on oil and gas exports, but with the introduction of the new law, it is expected that more businesses will be set up in other sectors, such as technology, healthcare, and renewable energy. This will help to create a more balanced and sustainable economy in Dubai, reducing its reliance on a single industry.
Helps to Create Jobs in Dubai
Thirdly, the new law will help to create jobs in Dubai. With more businesses setting up in the Emirate, there will be an increase in demand for skilled workers across a range of sectors. This is likely to lead to job creation, both directly through the new businesses themselves and indirectly through the supply chain that will be created to support them.
Finally, the new law will help to promote innovation and entrepreneurship in Dubai. With more businesses setting up in UAE, there will be a greater diversity of ideas and approaches