Foreign Direct Investment Licences will enable investors in many sectors to hold 100% ownership of businesses in Abu Dhabi
The Abu Dhabi Department of Economic Development (ADDED) announced on Wednesday the implementation of the Foreign Direct Investment Law in the emirate.
It will start issuing Foreign Direct Investment Licences which will enable investors to hold 100 percent ownership of their businesses in Abu Dhabi.
The licence covers 122 different economic activities related to the agricultural, industrial and services sectors, and targets businesses with total capital ranging between AED2-100 million or higher.
Mohammed Ali Al Shorafa, chairman of ADDED, said in comments published by state news agency WAM: "The issuance... is part of the Department’s efforts to further promote positive investment climate and thereby achieve sustainable economic development in Abu Dhabi."
He said ADDED is committed to enhancing the local investment environment and strengthening the Abu Dhabi economy’s competitiveness through policies that provide more investment opportunities in various non-oil sectors.
Al Shorafa added that the new licence further consolidates Abu Dhabi's position as a global hub for investment and ease in doing business, saying it will encourage investors, spur business development for foreign companies as well as attract businesses in technology and advanced industries.
"The implementation of the FDI law in Abu Dhabi..contributes to achieving various objectives such as expanding the base of foreign investments, increasing the size of capital flows, enhancing and diversifying local production and increasing the emirate’s exports of goods and services," he said.
Rashed Abdul Karim Al Balooshi, Undersecretary of ADDED, said the procedures in securing the licence are "fast and easy" and business activities include the manufacturing of food and beverages, clothing and leather production, legal consulting, accounting, auditing and tax advisory services, architectural and engineering activities, medical and dental clinics, veterinary activities and research and development activities in science and technology.
A total of 13 activities are currently not covered by the newly-issued licence, including postal and telecommunications services, audio and video media related services, petroleum exploration and production, ground and air transportation services, banking and finance activities, insurance activities, employment of labour and water, electricity and fisheries services.
In July, the UAE was ranked 19th globally in the 2020 Kearney Foreign Direct Investment (FDI) Confidence Index, up from 21st place when it was last represented in the index in 2017.
The country’s ranking reflects positive investor sentiment based on the government’s commitment to economic diversification, innovation, infrastructure and ease of doing business – among other factors.
source: arabianbusiness
