New FDI law set for cabinet nod

Dubai - UAE will make sure to have big attraction for FDI space for education, water, healthcare, renewable energy, etc.

 
The UAE will soon issue a Foreign Direct Investment law that will allow up to 100 per cent foreign ownership in certain sectors, a top official of UAE Ministry of Economy told Khaleej Times on Wednesday.
The ministry has finalised the draft law and soon it will be in the cabinet for discussion and later-on it will go to Federal National Council, according to Abdullah Al Saleh, Under Secretary for Foreign Trade and Industry Affairs at the UAE Ministry of Economy.
"We don't have any specific date. But as a Ministry of Economy we have fianalised the draft after consultation with all local entities related with FDI," Al Saleh said.
He added: "We have passed the draft to legislative committee and now the law is supposed to be proposed to the cabinet before going to FNC for discussion."
Responding to a question, he replied: The percentage of ownership for foreign investors will be increased from existing 49 per cent to 100 per cent in phases in certain sectors."
Talking about the sectors in focus, he mentioned that sectors will be decided by a higher committee. The committee will see the priority for the UAE to attract investment in certain sectors where value addition is required, he explained.
Earlier in his address to the second edition of Sharjah FDI Forum, Al Saleh the UAE will make sure to have big attraction for FDI space for education, water, healthcare, renewable energy, etc.
He took to the stage to expound on the UAE's FDI plans, explaining how it was a priority for the country in the face of depressed oil prices, regional instability and economic shocks such as the United Kingdom's withdrawal from the European Union.
"We are aiming to increase the UAE's diversification programme to permanently reduce our reliance on oil, the price of which is not set to rise anytime in the near future. The government has a target of reducing its oil-related GDP figure of 30 per cent to 20 per cent and is planning on FDI being five per cent of its GDP by 2021. We intend to build a knowledge-based economy that is underpinned by an increase in FDI and a greater number of free trade agreements," Al Saleh said.
- abdulbasit@khaleejtimes.com