The UAE requires all foreign nationals to have sole control of their UAE companies. Previously, the legislation allowed expats as their business sponsors to have Developers in UAE nationals, and then did not allow them to have full ownership. The condition was that only 49% of the shares should be owned by foreign nationals, while 51% was held by a local sponsor, a national of the Emirates.
The bill is to come into force on 1 December 2020 and is an amendment to the 2015 UAE Private Companies Law. This move is in accordance with the latest federal legislation issued by President Sheikh Khalifa Bin Zayed Al Nahyan, His Highness. The Cabinet Resolution No.16 of 2020 authorized this to happen. Different emirates have allowed companies owned by expats in the last few years to get their remaining 51 percent shares under their name, but on a case-by-case basis.
51 different articles were modified under this new legislation and new articles were also introduced. They are all about the rules of regulations regulating the opening of new limited liability shareholding firms. These include a recent exemption from requiring using UAE nationals as supporters for foreign nationals.
This will improve the economy of the nation as well as stocks. It is also said to improve the country's investments. The UAE will be open to numerous types of companies being established in the region. Huge companies such as Tata Group, with many of their jeweler (Tanishq) and watch (Titan) brands opening up around the UAE are expected to start up in Dubai Developers. The UAE has set a precedent in terms of the ease of doing business with the amendment of this rule. The shift would pull big industries into the nation and thereby show that the UAE, once again, has set a high standard when it comes to providing a pro-business climate.