Saturday, June 20, 2009

DCCI strongly backs 100 percent foreign ownership of businesses

The Dubai Chamber of Commerce and Industry (DCCI) has strongly supported the plan to allow foreign investors 100 percent ownership of locally-based companies in certain sectors of the economy.

At present foreigners should have UAE national as a sponsor, and are given the right to own only 49 percent of the company, if they wish to begin business outside the designated free zones.

The business group supports the amendments of proposed companies' law, in few economic sectors, with big investments and high technology that adds value to UAE economy, said Hamad Buamim, the Director General of DCCI yesterday.

The Government has been considering the revision of Companies Law for more than two years now. It has been pressurized from the Europe and the USA to permit greater foreign ownership of companies, based in the UAE.

According to analysts, such a move could benefit the economy and attract more investments, although, foreign investments in already established free zones could become pressurized.

The Director at Dubai's Arqaam Capital, Ali Khan, said that it is potentially good for the economy, but the free zones might feel pressured, as they need to attract investments too.

1 comment:

marhabahome said...

Only 100% foreign investments can improve the economy. Previously dubai was tight lipped regarding this.