New Investment law in UAE – Is it Good or Bad?

The UAE Government has been making some landmark decisions to attract more foreign investments into the country. On September 23, 2018, the Government took another giant step towards relaxing the rules which limited foreign companies to own companies in the United Arab Emirates. The Foreign Direct Investment Law (the FDI Law) (Federal Law No. 19 of 2018) was enacted after much speculation and debate regarding the possible liberalization of the restrictions of foreign ownership in the UAE. Earlier, the maximum limit of the shares that an overseas shareholder could hold in a UAE-onshore company was 49 percent (under the UAE Commercial Companies Law – Federal Law No. 2 of 2015). Continue reading