The full ownership law will have a positive multiplier effect in form of creation of jobs.
Dubai - Nation issues list of all 122 activities under 100% foreign ownership regime
Published: Sat 18 Apr 2020, 1:44 PM
Last updated: Sun 19 Apr 2020, 5:25 PM
The UAE has released the full list of 122 categories for 100 per cent ownership in the mainland under the Foreign Direct Investment (FDI) Law.
Cabinet Resolution No.(16) of 2020 determines the 'Positive List' of sectors and economic activities in which foreign direct investment is permissible and the percentage of ownership is 100 per cent.
In 2019, the UAE Cabinet had approved a Positive List of activities under which 100 per cent foreign ownership in companies outside free zones was permitted. However, this remained subject to certain criteria being satisfied.
The list covers key sectors - agriculture; manufacturing; transport and storage; hospitality and food services; information and communications; science and technology; healthcare; education; art and entertainment; and construction.
Cabinet Resolution No.(16) of 2020 also sets condition that companies need to invest in new technologies, contribute to research and development and meet the requirements of UAE licensing entities.
The Positive List includes a number of interesting activities such as manufacturing of toys, sports goods, electrical equipment, consultancy services, advertising, photographic activities, construction of buildings, translation services, primary, secondary and higher education, hotel and restaurant management, hospitals and music bands, among others.
"Manufacturing is the backbone of any country but it has not taken off so much here due to the nature of capital intensive projects and legal ownership restrictions. The investor is a minority shareholder legally always which is a major limitation, therefore, operating a manufacturing set up is very difficult," said Raju Menon, chairman of Kreston Menon.
He noted that operating a manufacturing unit in the free zones is the options available to hold 100 per cent but operating costs in free zones now-a-days are too expensive.
"Holding 100 per cent manufacturing operations in mainland is very attractive. However, capital adequacy is a precondition which any serious industrialist would adhere to. In my opinion manufacturing is the sector more benefitted. Apart from that, Private Joint Stock Company (PSC) can be the set-up vehicle. It is fully protected with the shield of limited liability," said Menon.
Anurag Chaturvedi, managing partner at Chartered House Tax Consultancy, said the full ownership law will have a positive multiplier effect in form of creation of jobs, an increase in productive capacity, resulting in less need to import because goods are produced in the domestic economy.
"FDI will compensate for the decrease in domestic investment as a result of Covid-19, and can help 'kick-start' the process of economic development," said Chaturvedi.
He said the allowing full-ownership to PJSC and a single person company is one of the unique preposition to boost the investment in service sector with minimum capital as per the current legislation in legal, audit and accounting amongst others. The minimum investment has been set at Dh2 million for manufacturing; Dh3 million for manufacturing of sports and toy industries; Dh20 million for manufacturing activities of automobiles, metal ad medical equipment; and Dh100 million for healthcare.
- waheedabbas@khaleejtimes.com
Agriculture sector
| | ISIC4
| Business activity
| Minimum Capital
| Conditions and controls for foreign direct investment
|
1
| 01111
| Grain cultivation (wheat, corn, barley, etc.)
| | - use of modern technology
- achievement of high added value
- contribution in the research and development field
- satisfaction of the requirements of the licensing entities in the state
|
2
| 01112
| Cultivation of bean crops
| |
3
| 0113
| Cultivation of vegetables, melons, roots and tubers
| |
4
| 0114
| Cultivation of sugar cane
| |
5
| 0116
| Cultivation of fiber crops
| |
6
| 0119001
| Flowers and Flower Buds Cultivation
| |
7
| 0121
| Growing of grapes
| |
8
| 0123001
| Fruits and Citrus Cultivation
| |
9
| 0124
| Growing of pome fruits and stone fruits
| |
10
| 0125
| Growing of other tree and bush fruits and nuts
| |
11
| 0126
| Growing of oleaginous fruits
| |
12
| 0127
| Growing of beverage crops
| |
13
| 01289
| Growing of aromatic, drug and pharmaceutical crops
| |
14
| 0161
| Support activities for crop production
| 10
|
15
| 0162
| Support activities for animal production
| |
16
| 0163
| Post-harvest crop activities
| |
17
| 0164
| Seed processing for propagation
| |
18
| 0210
| Silviculture and other forestry activities
| |
19
| 0240
| Support services to forestry
| |
Manufacturing sector
| | ISIC4
| Business activity
| Minimum Capital
| Conditions and controls for foreign direct investment
|
20
| 10
| Manufacture of food products (except):
1071- Manufacture of bakery products
105 - Manufacture of diary products
108 - Manufacture of prepared animal feeds
| 15
| - use of modern technology
- achievement of high added value
- contribution in the research and development field
- satisfaction of the requirements of the licensing entities in the state
|
21
| 10
| Manufacture of beverages (except):
1101 -Distilling, rectifying and blending of spirits
1102 -Manufacture of wines
1103- Manufacture of malt liquors and malt
| 15
|
22
| 14
| Manufacture of wearing apparel (except):
14109 - Tailoring and Sewing of Wearing Apparel
1410122 - Military Garments Manufacturing
| 15
|
23
| 15
| Manufacture of leather and related products
| 15
|
24
| 16
| Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials
| 15
|
25
| 2012002
| Straight or Complex Fertilizers Manufacturing
| 15
|
26
| 2013
| Manufacture of plastics and synthetic rubber in primary forms
| 15
|
27
| 2021
| Manufacture of pesticides and other agrochemical products
| 15
|
28
| 2022
| Manufacture of paints, varnishes and similar coatings, printing ink and mastics
| 15
|
29
| 2023
| Manufacture of soap and detergents, cleaning and polishing preparations, perfumes and toilet preparations
| 15
|
30
| 2029006
| Glues and Prepared Adhesives Manufacturing
| 15
|
31
| 2029008
| Manufacture of dyestuffs and pigments
| 15
|
32
| 2029009
| Textiles and Leather Finishing Used Chemical Materials Manufacturing
| 15
|
33
| 2029013
| Manufacture of photographic plates, films
| 15
|
34
| 2029019
| Gelatine and Its Derivatives Manufacturing
| 15
| - use of modern technology
- achievement of high added value
- contribution in the research and development field
- satisfaction of the requirements of the licensing entities in the state
|
35
| 2029021
| Essential Oils Manufacturing (Essence)
| 15
|
36
| 2029022
| Extracted Natural Aromatic Products Manufacturing
| 15
|
37
| 2029023
| Aromatic Distilled Waters Manufacturing
| 15
|
38
| 2029024
| Matches Manufacturing
| 15
|
39
| 2029025
| Welding Powders and Pastes Manufacturing
| 15
|
40
| 2030
| Manufacture of man-made fibres
| 15
|
41
| 2100
| Manufacture of pharmaceuticals, medicinal chemical and botanical products
| 15
|
42
| 22
| Manufacture of rubber and plastics products
| 15
|
43
| 23
| Manufacture of other non-metallic mineral products
| 15
|
44
| 24
| Manufacture of basic metals (except):
242 Manufacture of basic precious and other non-ferrous metals
2432 Casting of non-ferrous metals
| 20
|
45
| 25
| Manufacture of fabricated metal products, except machinery and equipment (except)
2529 Manufacture of weapons and ammunition
| 15
|
46
| 26
| Manufacture of computer, electronic and optical products
| 15
|
47
| 27
| Manufacture of electrical equipment
| 20
|
48
| 28
| Manufacture of machinery and equipment n.e.c. (except)
28259 Tobacco Processing Machinery Manufacturing
| 100
|
49
| 29
| Manufacture of motor vehicles, trailers and semi-trailers
| 100
|
50
| 3011101
| Building of Commercial Vessels
| 100
|
51
| 3011103
| Ships and Floating Structures Sections Manufacturing
| 100
|
52
| 3011905
| Construction of Drilling Platforms, Floating or Submersible
| 100
|
53
| 3011906
| Construction of Floating Structures
| 100
|
54
| 3011907
| Building of Hovercraft
| 100
|
55
| 3012
| Building of pleasure and sporting boats
| 15
|
56
| 3020
| Manufacture of railway locomotives and rolling stock
| 20
|
57
| 3030
| Manufacture of air and spacecraft and related machinery (except):
3030006 Military Ballistic and Guided Missiles Manufacturing
| 100
|
58
| 3090
| Manufacture of transport equipment n.e.c.
| 20
|
59
| 31
| Manufacture of furniture
| 15
|
60
| 3220
| Manufacture of musical instruments
| 2
|
61
| 3230
| Manufacture of sports goods
| 3
|
62
| 3240
| Manufacture of games and toys
| 3
|
63
| 3250
| Manufacture of medical and dental instruments and supplies
| 20
|
64
| 3290
| Other manufacturing n.e.c.
| 3
|
65
| 3312001
| Repair and maintenance of train engines
| 15
|
66
| 3312002
| Repair and maintenance of engines ship
| 15
|
67
| 3315001
| Repair and maintenance of ships
| 15
|
68
| 3315004
| Repair and maintenance of trains and railway equipment
| 15
|
69
| 3315005
| Maintenance and Repair of Aircrafts Engines
| 15
|
70
| 3315006
| Repair and maintenance of aircraft
| 15
|
Service sector
| | ISIC4
| Business activity
| Minimum Capital
| Conditions and controls for foreign direct investment
|
71
| 6910002
| Legal Consultancy Offices
| As per the applicable regulations
| - Not to advocate before the UAE courts.
- Not to carry out any judicial procedure before courts, arbitral tribunals, and judicial and administrative committees.
- Not to carry out attestation activities
- To obtain the approval of the relevant entities in charge of licensing such activities in the State
- To be a natural or legal person known for its excellence in this field
|
72
| 692
| Accounting, bookkeeping and auditing activities; tax consultancy
| As per the applicable regulations
| Only permissible for tax planning for businesses and consultancies, preparing and reviewing taxes on businesses
|
73
| 711
| Architectural and engineering activities and related technical consultancy
| As per the applicable regulations
| To be a natural or legal person known for its excellence in this field
|
74
| 862
| Medical and dental practice activities
|
75
| 75
| Veterinary activities
|
76
| 620
| Computer programming, consultancy and related activities
| As per the applicable regulations
| To provide a technical team of no less than 5 specialized programmers by the end of the first year of the company
|
77
| 72
| Scientific research and development
| As per the applicable regulations
| As per the applicable regulations
|
78
| 7730-77300
| Renting and leasing of other machinery, equipment and tangible goods
|
79
| 471
| Retail l sale in non-specialized stores (except Cooperative Societies 4711001)
|
80
| 731
| Advertising
|
81
| 732
| Market research and public opinion polling
|
82
| 702
| Management consultancy activities
|
83
| 712
| Technical testing and analysis
|
84
| 331
| Repair of fabricated metal products, machinery and equipment (except ships or aircrafts and other transport equipment)
|
85
| 8121-81210
| General cleaning of buildings
|
86
| 742
| Photographic activities
|
87
| 8292-82920
| Packaging activities
|
88
| 823
| Organization of conventions and trade shows
|
89
| 741
| Specialized design activities
|
90
| 7490005
| Legal Translation Services
|
91
| 7490006
| Translation services, movies and television programs
|
92
| 7490012
| Translation Publications Services
|
93
| 8299002
| Translation Services
|
94
| 41
| Construction of buildings
| As per the applicable regulations
| Only permissible for large-scale infrastructure projects such as airports, highway roads, sport facilities and projects whose value exceed AED 450,000,000
|
95
| 42
| Civil engineering
|
96
| 432
| Electrical, plumbing and other construction installation activities
|
97
| 433
| Building completion and finishing
|
98
| 431
| Demolition and site preparation
|
99
| 439
| Other specialized construction activities
|
100
| 7730009
| Construction and Building or Demolition Machines and Equipment Renting
|
101
| 851
| Pre-primary and primary education
| As per the applicable regulations
| - Public education excluded.
- To obtain the approval from the entities in charge of education to license such activities and to comply with such standards and controls as may be determined by them.
- To comply with the conditions and standards of school facilities and to ensure a high level of education quality
|
102
| 852
| Secondary education
|
103
| 853
| Higher education
|
104
| 854
| Other education
|
105
| 370
| Sewerage
| As per the applicable regulations
| As per the applicable regulations in this regard
|
106
| 382
| Waste treatment and disposal
|
107
| 3900001
| Pollution Consequences Treatment and Environment Protection
|
108
| 861
| Hospital activities
| 100
| - Subject to the approval of the relevant authorities in light of the economic need taking into account the number of hospitals, medical and health centers in a specific area.
- Dubai Healthcare City is excluded from the above condition.
|
109
| 869
| Other human health activities
| 70
| As per the applicable regulations
|
110
| 8211001
| Hotel Management
| As per the applicable regulations
|
111
| 8211004
| Restaurants Management
|
112
| 90009
| Creative activities and presentation of arts drama (theater)
| Permissible only for theater activities and live bands
As per the applicable regulations
|
113
| 9000104
| Music Band
|
114
| 9000110
| Circus
|
115
| 8130002
| landscape and gardening services
|
116
| 9103-91030
| Botanical and zoological gardens and nature reserves activities
| Permissible only for public garden services and specialized garden services.
|
117
| 5012-50120
| Sea and coastal freight water transport
| As per the applicable regulations
|
118
| 5022001
| Internal Water Transportation of Goods
|
119
| 7730016
| Commercial Ships Rental
|
120
| 5222002
| Ship Piloting and Towing
|
121
| 5222007
| Marine towing of boats and jet sk
|
122
| New
| Activities of holding companies in intellectual property
|
Source: Fichte & Co.
iPhone | iPad
Android
Huawei
