• Home
• /
• Business

UAE mulling changing company ownership law

Mohammed Ali Al Abbar, director-general of Dubai Department of Economic Development, speaking at the opening seminar on the sidelines of the board meetings of World Bank and IMF at the Dubai International Convention Centre on Saturday, said: "The move to amend the law, in favour of non-nationals doing business in the country, is in keeping with the country's rapid changes that are taking place in the new economy

"General Shaikh Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and UAE Minister of Defence, has taken a bold initiative to allow foreigners to own Dubai real estate, a step considered to be of great impact on the UAE economy."

"We have a highly energised business environment here in Dubai with 11 free zones, excellent telecom, education and healthcare facilities, he said. In the last five years Dubai managed to provide investors with the best and easiest procedures if they want to start business over here. We have very simple procedures that takes anyone three hours to be licensed compared to three months in the MENA region that itself is a good start up initiative.

"Capital requirements range from US$ 820,000 for a specific licence, while in the free zones all you need to show is US$ 50,000."

"Our biggest strength is our human capital - a talented and diverse pool of professionals from 201 nationalities and we service a consumer base of over 1.5 billion consumers in the Middle East, Africa, Indian subcontinent and some part of CIS."

He continued: "Our economy is highly diversified with strong emphasis on the non-oil sector, and we have ability to take any external shocks be they of conflicts or monetary upheavals.

"Dubai has created a financial market in 2000 to embark on capital markets to enhance business and commercial activities in the future, said Al Abbar. The market capitalisation of the DFM shows a strong upward trend and has grown almost 30 per cent from the level of a year ago.

He added: "Trading in share volumes in spite of the war in the region which depressed the financial markets across the region have regained their upward momentum. From share a share volume of trade of 7.7 million in February 2003, just before the war, it stands at 24 million until now in September."

The DFM provides foreign entities the provision to own upto 49 per cent of the capital of UAE public client stock companies.