Further Relaxation of Foreign Direct Ownership Restrictions in the United Arab Emirates

    View Author April 2020
    On 31 March 2020, Federal Cabinet of the United Arab Emirates (UAE) published Cabinet Resolution No. 16 of 2020 Defining the Positive List of the Economic Sectors and Activities in which Foreign Direct Investment is Permitted and their Ownership (the Cabinet Decision). The Cabinet Decision sets out specifics concerning economic activities for which 100% foreign ownership is permitted in the UAE (the Positive List) and the requirements associated with full foreign ownership. The Cabinet Decision introduces some certainty and clarity in terms of the requirements applicable to foreign direct investment companies licensed under the UAE’s existing foreign ownership laws, which have been considerably relaxed, advancing a process begun in 2018.