New foreign investment rules on cards for key industries, says Al Mansouri

ABU DHABI - Dubai

A new foreign investment law will allow full or partial ownership of foreign investments in vital economic sectors that support economic diversification, experience and knowledge transfer, and innovation, says Sultan bin Saeed Al Mansouri, Minister of Economy.
Speaking at the Third Policy Review by the World Trade Organisation in Geneva, the economy minister said full ownership is allowed for a number of international companies that provide professional and specialised services.
He said that a new foreign investment law will allow full or partial ownership of foreign investments in vital economic sectors that support economic diversification, experience and knowledge transfer, and innovation.
"The UAE will continue to pursue economic strategies characterised by openness and enhance enablers for working according to free-market mechanisms, in light of its belief that an open economy increases our national competitiveness," he said.
He elaborated on the benefits and guarantees offered for foreign investments, citing the presence of more than 30 free trade zones within the country that allow 100 per cent ownership in addition to many other incentives.
More than 40,000 companies operate in these zones spread across the various emirates, he said. Earlier, the World Trade Organisation (WTO) concluded its third Trade Policy Review of the UAE. The Organisation commended the important role played by the UAE in global trade and its commitment to the principles of the multilateral trading system, as well as the adoption of economic policies for promoting efficient trade movement locally, regionally and internationally which have made the country an important global trade hub.
The UAE underwent the review with the participation of a high-level delegation headed by Engr. Sultan bin Saeed Al Mansouri, Minister of Economy, in the presence of ambassador Obaid Salem Al Zaabi, permanent representative of the UAE to the United Nations and other International organisations in Geneva.
The UAE delegation provided the answers to more than 260 questions and inquiries raised by WTO member countries. The queries were based on two reports, one prepared by the UAE Government, and another by the WTO Secretariat addressing rules, regulations and procedures related to the trade of goods and services in the UAE.
WTO members involved in the Third WTO Trade Policy Review praised the steps taken by the UAE to diversify its economy, noting how the country's flexible trade policies have contributed to the growth of non-oil foreign trade.
Engr Al Mansouri expressed pride in the wide praise given to the UAE's economic policy, emphasizing that the country has taken into consideration all the comments on sectors requiring more attention during his closing speech at the Third WTO Trade Policy Review in Geneva.
The Minister also addressed a number of concerns that were debated on during the review sessions, including the issuance of private ownership and the applicability of an investment law allowing up to 100 per cent foreign investment in different sectors. In his speech, the Minister outlined the types of commercial agencies operating in the UAE, issues relating to workers' conditions, and the insolvency law set for implementation shortly.
He also presented the strategic trading partners of the country, referring to the European Union as the UAE's largest trading partner.
The most foreign companies operating in the UAE are members of the European Union and total around 160,000 companies, the minister said.
Ambassador Irene B. K. Young, the current chair of the WTO's Trade Policy Review Body (TPRB), mentioned the member countries' appreciation for several facets of the UAE's trading policy, including the commitment to low customs tariffs and the implementation of common external GCC customs tariffs that vary between zero to five per cent.
- haseeb@khaleejtimes.com