ANNOUNCEMENT 26 Jan 2012In January 2012, the government of the United Arab Emirates announced changed rules for foreign investors.
NUMBER OF INTERVENTIONS
Government of Dubai, Department of Economic Development:
On 26 January 2012, the Department of Economic Development of the UAE has formed a committee to evaluate the possibility of allowing nationals of the Gulf Co-operation Council to set up partnership firms with foreigners in the country, without an Emirati partner.
Up to now, foreign investors in UAE are only allowed to hold minority stakes in companies and must have a local partner, exceptions are made for few so called 'free zones'. The new measure would bring about higher flexibility, allowing foreign investors to form partnerships with citizens of other Gulf countries as well.
Approval of an investment, however, may have certain commerce-related strings attached. The relevantgovernment notice stated "The committee will consider the following while weighing the requests made byGCC nationals to allow partnership firms without a local partner: whether theproposed projects include transfer of knowledge and technology to the UAE ortransfer of operations of some well-known companies to the UAE, and whether theproject is a priority for the emirate's economy."