“Members of the House will debate in a two-day session a draft commercial law that will allow 100 per cent foreign ownership of some companies, within specific conditions,” said Al Nuaimi, a representative from Ajman.
The draft legislation would authorise the Cabinet, on advice from the Minister of Economy, to name companies which would be fully owned by foreigners.
Under UAE law only citizens are allowed full ownership of companies operating outside of free zones. The law currently allows foreigners to own a maximum of 49 per cent of companies registered outside of free zones — and requires foreigners to have an Emirati as a partner or sponsor to conduct business.
Al Nuaimi told Gulf News eligible companies would “have to be within the industries that have certain priorities within the economy, such as aerospace, communications and petrochemicals.”
“These companies should bring added value in terms of providing their expertise to support the UAE’s continued development and growth. They should also hire large numbers of Emiratis, with each offering 100 jobs or more to citizens,” argued Al Nuaimi, also rapporteur of the parliamentary financial committee.
He added the legislation would lay down a framework for the governance of public companies, ensuring transparency and disclosure of financial data as well as the efficiency and integrity of the board of directors.
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