On 23 November 2020, the United Arab Emirates (UAE) announced certain changes to Federal Law No. 2 of 2015 on Commercial Companies (CCL), pursuant to which it has, inter alia, allowed 100% foreign ownership of UAE incorporated companies and repealed Federal Decree No. 19 of 2018 on Foreign Direct Investment.
Based on our review of the new decree, the investment process for investing in the UAE will be eased significantly, while also providing for greater participation in company management and boards, improved governance and transparency in management, and greater flexibility in share subscription. Coupled with the recent changes in visa requirements and residency rules for business people, the new decree is indicative of the UAE’s continued commitment to encouraging international investment, and should stimulate even greater foreign direct investment in the coming years.