New FDI ruling in UAE encourages new industry and foreign investment. - PowerPoint PPT Presentation

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New FDI ruling in UAE encourages new industry and foreign investment.

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We, at Al Nassar, advocates in Dubai are constantly monitoring each and every development in the sector and undertake a careful review of every Act, Article and law made in this regard. – PowerPoint PPT presentation

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Date added: 4 February 2019
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Title: New FDI ruling in UAE encourages new industry and foreign investment.


1
New FDI ruling in UAE encourages new industry and
foreign investment.
https//www.alnassaradvocates.com/
2
Al Nassar Advocates Legal Consultants in Dubai
  • The recently introduced Foreign Direct Investment
    Law (Federal Law 19 of 2018) is an epoch making
    event in UAEs economic history. As per the new
    law, foreign shareholders can now have upto 100
    ownership of companies in specified sectors. The
    FDI law provides for a positive list and a
    negative list which is nothing but the sectors in
    which 100 FDI is allowed and sectors in which
    they are not.
  • As per the law, the UAE cabinet is to form a FDI
    committee which will suggest the sectors to be
    included in the positive list. The final
    decision on the sectors in the positive list
    will be left to the UAE cabinet. A broad outline
    or principles has been given for the FDI
    committee to determine the sectors under positive
    list.
  • To be in alignment with the overall plans of UAE
  • (ii) Value addition to UAE economy
  • (iii) Technology innovation and job opportunities
    and training for UAE Nationals

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3
Al Nassar Advocates Legal Consultants in Dubai
(iv)The overall expertise, repute and competency
of the FDI firm (v) Modern technology
implementation and (vi)Any other requirement and
conditions as may be imposed by the UAE cabinet
from time to time   The level of such ownership
can be fixed at any level, either 100 percent or
any lesser percentage. Conditions may also be
imposed on the minimum capital requirement, the
form of entity and Emirati (employment on board)
requirement etc.   Not-permitted sectors (The
negative list)   Article 7 of the FDI law
specifies the negative list in which higher
levels of FDI is not permitted. These are (i)
Petroleum products exploration and
production (ii) Fishing (iii) Security,
Military, Arms and Weapons and uniformed services
and equipments etc (iv) Post Telecom
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4
Al Nassar Advocates Legal Consultants in Dubai
(v) Banking and Financial services (vi)
Transportation (Land Air) (vii)
Insurance (vii) Hajj Umrah services and
services such as publishing, labour, recruitment,
pharmaceutical, blood banks, quarantines,
electricity and water supply etc.   The cabinet
has the right to add or remove any sector from
the above list. Article 10 lists the procedure
to apply for increased FDI ownership. The
application should be processed within 5 working
days by the competent authority. License shall
be issued by the Economic Department of the
Emirate concerned, while rejected applications
have an appeal process defined. Detailed
procedures for registration, renewals etc. are
being issued separately.   For sectors that are
neither on the positive list nor on the negative
list, applications can still be submitted for
higher FDI. A new FDI Unit will be created under
the Ministry of Economy.
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5
Al Nassar Advocates Legal Consultants in Dubai
The FDI unit shall recommend the FDI policies to
the Government and establish a comprehensive
database of FDI projects in UAE and monitor their
performance too. The new FDI law is a path
breaking event in the annals of UAEs economy.
Though at present there is no clarity on the
exact sectors under positive list, the UAE
cabinet has been given the powers to issue
directions on this. The cabinet may accordingly
permit a ownership of less than 100, place
restrictions on the type of entity, specify
minimum capital investment, allow greater FDI
ownership in specific Emirates and so on. We, at
Al Nassar, advocates in Dubai are constantly
monitoring each and every development in the
sector and undertake a careful review of every
Act, Article and law made in this regard.
Whether you are a MNC looking to improve your UAE
presence, or a local business wanting to know how
the new law will affect the future of UAEs
economy, you can contact Al Nassar Advocates for
more clarity and information on the issue.  
https//www.alnassaradvocates.com/
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