Latest news with #CommercialCompaniesLaw
Time of India
02-06-2025
- Business
- Time of India
UAE sees surge in foreign-owned real estate firms
More foreign-owned real estate agencies are entering the UAE market as the sector continues to grow in both investment activity and property transactions. With Dubai setting monthly records and other emirates like Ras Al Khaimah attracting first-time investors, the country's property sector is seeing sustained interest from brokers and consultancies, according to a report by Gulf News. The UAE now allows 100% foreign ownership of real estate brokerages, investment consultancies, and development firms. This has become the standard structure for new entrants, according to Jim Swallow, Commercial Director at Sovereign PPG. 'Full foreign ownership in the real estate brokerage, investment consultancy and development is the standard set up now,' he said to Gulf News. 'Most of the demand for a new real estate brokerage business set up is to be 100% foreign-owned.' This shift began in mid-2021, following changes to the UAE's Commercial Companies Law, which removed the previous requirement for a 51% local partner in many mainland sectors, including property services. Since then, new license registrations for real estate firms have increased steadily. While some firms still retain local partnerships—either due to joint ventures or location-specific ownership rules—many have transitioned to full foreign ownership. 'Many firms have since opted for share transfer to 100% foreign ownership if the local partner was a silent partner,' Swallow added. 'Where the local partner was an investor and active in the business, some have opted to be bought out.' (Join our ETNRI WhatsApp channel for all the latest updates) Although Dubai's property price growth is expected to slow in certain areas, interest in setting up brokerages remains strong. New firms are also eyeing opportunities in Ras Al Khaimah and Abu Dhabi, where real estate activity is expanding. Ras Al Khaimah, in particular, is drawing more first-time European investors, prompting overseas consultancies to establish operations there. Live Events You Might Also Like: UAE introduces 5 new categories for Golden Visa eligibility 'There are still foreign family offices and investment firms setting up UAE operations and possibly wanting to take up positions in local real estate,' said a Dubai-based broker to Gulf News. According to the report, in April, Dubai real estate posted its best-ever month for transactions, according to brokers. The Dubai Land Department currently lists over 25,800 licensed real estate brokers, and the number is continuing to rise. This has encouraged fresh graduates to explore careers in real estate, even as agencies like Fitch predict a potential slowdown in price growth in the near term. Becoming a licensed broker in Dubai requires individuals to register with the Dubai Real Estate Institute, complete a training program, and pass an exam administered by the Real Estate Regulatory Agency ( RERA ). A license is issued upon successful completion of the process. As more players enter the market and foreign firms seek to tap into regional demand, the UAE's real estate sector continues to present opportunities despite changing dynamics. You Might Also Like: VFS Global launches world's largest visa centre in Dubai's Wafi
Hi Dubai
27-05-2025
- Business
- Hi Dubai
Can Foreigners Really Own 100% of a Business in the UAE? Here's the Truth
The United Arab Emirates (UAE) has long been a magnet for global investors, thanks to its strategic location, world-class infrastructure and business-friendly policies. Positioned as a bridge between East and West, the UAE offers access to vibrant markets, state-of-the-art facilities and a tax environment that encourages growth. However, for decades, one factor tempered its appeal: strict restrictions on foreign ownership. Historically, foreign investors could only hold up to 49% of mainland companies, with a mandatory 51% stake reserved for local Emirati sponsors. This requirement often led to complex partnerships and potential challenges, deterring some international businesses from fully committing. In recent years, the UAE has undergone a dramatic transformation. The introduction of Federal Decree-Law No. 26 of 2020 marked a turning point, allowing foreign investors to own 100% of companies in most sectors. This bold reform has streamlined business setup, reduced costs and significantly boosted the UAE's attractiveness as a global investment destination. Today, the UAE is not just a regional hub but a leader in fostering an open environment for international capital. Explore the evolution of foreign ownership restrictions in the UAE, from their historical roots to the groundbreaking 2020 reforms and the sectors that still require local ownership. History of Foreign Ownership in the UAE To appreciate the significance of recent changes, it's essential to understand the historical context. For decades, the UAE enforced a 49% cap on foreign ownership in mainland companies, known as the "51/49 rule." This meant that any business operating outside of free zones had to have a UAE national as a majority shareholder, holding 51% of the company. The rationale behind this rule was multifaceted: Economic Protection : Ensuring local businesses and citizens benefited from economic growth. : Ensuring local businesses and citizens benefited from economic growth. Control Over Key Sectors : Maintaining national oversight in strategic industries. : Maintaining national oversight in strategic industries. Cultural Preservation: Safeguarding local identity in a rapidly globalizing economy. However, this requirement posed challenges. Finding a reliable local sponsor could be time-consuming and costly, and the sponsor's involvement sometimes led to operational inefficiencies or conflicts. To circumvent these restrictions, many foreign investors turned to the UAE's free zones, such as Dubai Internet City (Dubai Internet City) and Abu Dhabi's Masdar City (Masdar City). These zones offered 100% foreign ownership, tax exemptions and streamlined bureaucracy, making them a popular choice for international companies. The 2020 Legal Reforms The turning point came in 2020 with Federal Decree-Law No. 26 of 2020, which amended the Commercial Companies Law. This landmark legislation allowed foreign investors to own 100% of companies in most sectors on the UAE mainland, eliminating the need for a local sponsor in many cases. The reform, effective since 2021, aligns with the UAE's Vision 2030 strategy to diversify its economy and attract more foreign direct investment. Key aspects of the reform include: Broad Sector Coverage : The UAE Cabinet published a "positive list" of 122 economic activities across 13 sectors eligible for 100% foreign ownership. These include: Technology and IT (e.g., software development, tech startups) Healthcare (e.g., medical clinics, pharmaceutical companies) Education (e.g., private schools, training centers) Tourism and Hospitality (e.g., hotels, tour operators) Manufacturing (e.g., production plants) Media and Entertainment (e.g., advertising, film production) Logistics and Supply Chain (e.g., warehousing, transportation) E-commerce (e.g., online retail) Financial Services (e.g., investment firms, financial advisory) : The UAE Cabinet published a "positive list" of 122 economic activities across 13 sectors eligible for 100% foreign ownership. These include: Simplified Setup : Investors no longer need to engage a local sponsor, reducing costs and administrative hurdles. : Investors no longer need to engage a local sponsor, reducing costs and administrative hurdles. Increased Autonomy: Full ownership allows greater control over business operations and profits. The impact has been significant. The reforms have streamlined business registration, enhanced investor confidence, and led to a surge in foreign direct investment. Lists of permitted activities are available through the Department of Economic Development in Abu Dhabi (Abu Dhabi DED) and the Department of Economy and Tourism in Dubai (Dubai DET). Who Still Faces Restrictions? While the reforms have opened many opportunities, certain sectors remain restricted due to their strategic or cultural significance. According to Cabinet Resolution No. 55 of 2021, the following activities require local ownership: Security and Defence Activities and Activities of a Military Nature Military Garments Manufacturing Military Men Clothing & Uniforms Tailoring Medium Military Weapons Manufacturing Metal Badges & Military Insignia Manufacturing Military Tools & Supplies Manufacturing Dismantling & Destroying Equipment & Military Weapons Military Dress Trading Military Weapons Trading Military Equipment Trading Military Ammunition, Explosives & Pyrotechnic Products Trading Military Scrap Trading Military Tools & Supplies Trading Military Vehicles & Equipment Spare Parts Trading Naval & land Unexploded Ordnance & Mines Disposal Light Military Weapons Manufacturing Military Heavy Weapons Manufacturing Military Ammunition Manufacturing Explosives & Pyrotechnic Products Manufacturing Building of Military Ships Military Aircrafts Manufacturing Toughened & Laminated Flat Glass Manufacturing Propellant Powders Manufacturing Radar Equipment Manufacturing Military Plants Equipment Manufacturing Military Ballistic & Guided Missiles Manufacturing Military Fighting Vehicles Manufacturing Tanks Manufacturing Armoured Amphibious Military Vehicles Manufacturing Military Remote-Control Systems Manufacture Sensors & Military Communication Systems Manufacturing Plating Machinery & Vehicles Military Equipment Repair & Maintenance Military Aircrafts Repair & Maintenance Military Ships Repair & Maintenance Military Reality-Based Training Defence & Security Companies' Representation Military Consultancy Defence & Surveillance Systems Development Missiles & weapons Technology Development Military Aircrafts Safety & Protection Systems Development Military Technology Research & Development Control & Command Systems Development Banks, Exchange, Financing, Insurance and Bank Note or Coin Production Commercial Bank Islamic Bank Credit & Finance Bank Investment Bank Savings Bank Wholesale Bank Digital Wallet for Electronic Payments Hawala Brokers Services Real Estate Financing Industrial Financing Agricultural Financing E-Finance Consumer Loans of Consumer Credit Financing Operations Accidents & Civil Liabilities Insurance Life Insurance Credit & Saving Insurance Fire Insurance Theft Insurance Work Compensation Insurance Motor, Marine, Aviation & Transport Insurance Health Insurance Mechanical Failure Insurance Other types of insurance Reinsurance Reinsurance Life Reinsurance Money Exchangers Money Orders & Travellers Cheques Exchangers Remittance of Local & Foreign Currencies E-Banking Insurance Actuaries Insurance Broker Insurance Agent Banknotes Printing Coin Minting Telecommunications Radio Broadcasting Station Wired Telecommunications Services Operating & Maintaining Switching & Transmission Facilities Cable Distribution & Data & Television Signals Operation Television & Radio Broadcasting Via Encrypted & Open Channels Wireless Telecommunications Services Satellite Communications Services Satellite Ground Station Other Categories Commercial Agencies Hajj & Umrah Organizing Holy Quran Recitation Institute Fish Catching Natural Pearl Catching Marine Animals Catching (The list is sourced from Invest in Dubai) Individual emirates may impose their own regulations. For example, Dubai and Abu Dhabi maintain separate lists of activities eligible for 100% foreign ownership. Investors should consult emirate-specific guidelines, such as those from Dubai's Department of Economy and Tourism (Dubai DET), to ensure compliance. The UAE's shift from restrictive foreign ownership laws to a more open regime reflects its commitment to economic diversification and global integration. The 2020 reforms have made it easier for foreign investors to establish and control businesses, positioning the UAE as a top destination for international investment. As of 2025, the country continues to refine its business environment, with ongoing efforts to attract high-value investments in technology, sustainable energy and other key sectors. For global investors, the UAE offers vast opportunities, provided they navigate emirate-specific regulations and sector restrictions carefully. Also Read: A Step-by-Step Guide to Setting Up Businesses in UAE Mainland The Ministry of Economy provides clear guidance on the steps involved in establishing a business in the UAE mainland. Read more on how to set up a business in UAE mainland. Import and Export Business in Dubai: Set-Up Guide Looking to set up an import-export business in Dubai? Here are the benefits and hurdles of setting up a successful import-export business. Discover the 10 Most Popular Freehold Zones in Dubai If you are planning to buy your dream property, Dubai is the ideal city to do so. From luxurious waterfront villas to high-rise apartments and office spaces, there is a property to suit every lifestyle and investment objective. Here are some of the best freehold areas in Dubai you need to consider. Unlocking golden opportunities: Top Sectors to Invest in Dubai Want to get the best bet on your money? Here are the top sectors to invest in Dubai. Is it possible to set up a company or invest in the UAE without physical presence in the country? Reader wants to know if it is possible to explore investment opportunities or run a business without being a resident.
Daily Tribune
18-05-2025
- Business
- Daily Tribune
Bahrain Passes Over 1,900 Economic Laws Since 2002, Says Finance Minister
The Kingdom is the only country globally to guarantee full data sovereignty. Over $6.5 billion in investments were attracted in 2023 and 2024 combined. Bahrain has enacted more than 1,900 economic and investment-related laws since 2002 as part of its ongoing efforts to strengthen the Kingdom's economic environment, announced Minister of Finance and National Economy, Shaikh Salman bin Khalifa Al Khalifa. Speaking at the opening of the Economic Forum hosted by the Shura Council under the theme 'Towards Inclusive and Sustainable Economic Development,' the minister highlighted key legislative milestones, including the Commercial Companies Law. He also noted that Bahrain is the only country in the world that guarantees full data sovereignty. Among the other significant laws he cited were the Labour Market Regulation Law and the Reorganization and Bankruptcy Law, in addition to the establishment of the Bahrain International Commercial Court, which has positioned Bahrain as the second international hub for resolving cross-border commercial disputes. Economic Recovery and Job Creation Shaikh Salman presented an overview of Bahrain's Economic Recovery Plan, first announced in late 2021, revealing that 80% of its objectives have already been implemented. The plan includes national strategies that align with global economic shifts, prioritizing employment, business development, and sustainability. One of the plan's key goals has been job creation, with a focus on making Bahraini citizens the first choice in the labor market. In support of this, 29,995 citizens were employed in 2022, with a similar number hired in 2023, and 27,147 more finding employment in 2024. Strategic Investment and Mega Projects The Minister also underscored Bahrain's success in attracting major investments. The Kingdom secured over $2.5 billion in investments in 2023 and more than $4 billion in 2024, driven by streamlined commercial procedures and the implementation of major strategic development projects across diverse sectors. 'These projects are not just infrastructural—they represent a broader strategy to transform and future-proof Bahrain's economic landscape,' Shaikh Salman noted. Sustained Economic Growth Bahrain has achieved a compound annual growth rate (CAGR) of 7% over the past two decades—surpassing the global average of 5% during the same period. Since 2004, the size of the national economy has quadrupled. Additionally, the contribution of non-oil sectors to Bahrain's GDP has grown from 67% in 2004 to 86% in 2024, making Bahrain's economy one of the most diversified in the region. The forum brought together experts, lawmakers, and policymakers to discuss Bahrain's economic vision and its transition toward sustainable and inclusive growth in a rapidly evolving global economy.
Zawya
05-05-2025
- Business
- Zawya
Over 400 firms penalised in Oman for hidden trade
Muscat - The National Team for Combating Illicit Trade (NTT) has conducted audits of 581 commercial companies in three main governorates: Muscat, Dhofar, and North Al Batinah as part of the ongoing efforts to combat hidden trade and enhance the business environment. These efforts resulted in the issuance of administrative penalties to 410 violating establishments. Meanwhile, 77 companies complied with the audit requirements by submitting the necessary documents, such as bank statements and lease contracts, bringing the response rate to 13.2 percent. These governorates were selected based on the high density of commercial records. Muscat Governorate has 20,244, North Al Batinah 16,094, and Dhofar 16,094. Nasra bint Sultan al Habsi, Director General of Commerce at the Ministry of Commerce, Industry and Investment Promotion (MOCIIP) Nasra bint Sultan al Habsi, Director General of Commerce at the Ministry of Commerce, Industry and Investment Promotion (MOCIIP) and Head of the National Taskforce for Illicit Trade, confirmed that the campaign aims to combat hidden trade and promote economic integrity by combating the misuse of licenses and various professions, in addition to raising confidence in the economic system and increasing tax revenues. She explained that the number of activities subject to monitoring reached 106, including those prohibited to foreign investment (except 20 activities), in addition to some service activities such as dental clinics and pharmacies, provided that the company has been established for five years. Activities exempted from the ban include sectors such as tailoring, vehicle repair, hairdressing, laundry, flower sales, and pet care services. The Ministry of Commerce, Industry, and Investment Promotion (MOCIIP) has urged all institutions and commercial companies to open a bank account in one of the licensed banks in the Sultanate of Oman. This is mandatory as per the Commercial Companies Law issued by Royal Decree 18/2019 and its executive regulations issued by Ministerial Decision 146/2021 and Ministerial Decision 412/2023 regarding combating hidden trade. The Oman Chamber of Commerce and Industry (OCII) also stresses the need for all commercial institutions and companies to commit to opening a bank account in one of the banks licensed to operate in the Sultanate, as per the provisions of the Commercial Companies Law and ministerial decisions to combat hidden trade 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Observer
03-05-2025
- Business
- Observer
Over 400 firms penalised in Oman for hidden trade
Muscat - The National Team for Combating Illicit Trade (NTT) has conducted audits of 581 commercial companies in three main governorates: Muscat, Dhofar, and North Al Batinah as part of the ongoing efforts to combat hidden trade and enhance the business environment. These efforts resulted in the issuance of administrative penalties to 410 violating establishments. Meanwhile, 77 companies complied with the audit requirements by submitting the necessary documents, such as bank statements and lease contracts, bringing the response rate to 13.2 percent. These governorates were selected based on the high density of commercial records. Muscat Governorate has 20,244, North Al Batinah 16,094, and Dhofar 16,094. Nasra bint Sultan al Habsi, Director General of Commerce at the Ministry of Commerce, Industry and Investment Promotion (MOCIIP) Nasra bint Sultan al Habsi, Director General of Commerce at the Ministry of Commerce, Industry and Investment Promotion (MOCIIP) and Head of the National Taskforce for Illicit Trade, confirmed that the campaign aims to combat hidden trade and promote economic integrity by combating the misuse of licenses and various professions, in addition to raising confidence in the economic system and increasing tax revenues. She explained that the number of activities subject to monitoring reached 106, including those prohibited to foreign investment (except 20 activities), in addition to some service activities such as dental clinics and pharmacies, provided that the company has been established for five years. Activities exempted from the ban include sectors such as tailoring, vehicle repair, hairdressing, laundry, flower sales, and pet care services. The Ministry of Commerce, Industry, and Investment Promotion (MOCIIP) has urged all institutions and commercial companies to open a bank account in one of the licensed banks in the Sultanate of Oman. This is mandatory as per the Commercial Companies Law issued by Royal Decree 18/2019 and its executive regulations issued by Ministerial Decision 146/2021 and Ministerial Decision 412/2023 regarding combating hidden trade. The Oman Chamber of Commerce and Industry (OCII) also stresses the need for all commercial institutions and companies to commit to opening a bank account in one of the banks licensed to operate in the Sultanate, as per the provisions of the Commercial Companies Law and ministerial decisions to combat hidden trade
