As the new Commercial Companies Law has become effective in the UAE from June 1, Sharjah and Ajman have announced plans to award 100 per cent ownership in commercial and industrial companies to foreign investors.
The Sharjah Economic Development Department (SEDD) on Wednesday announced that it would be implementing the full foreign ownership policy from June 2021. Ajman also cleared more than 1,000 economic activities for foreign investment.
"This decision includes no requirements such as a specific capital or any additional fees for foreign investors, while allowing branches of foreign companies to conduct their business in the Emirate without the need for an agent of a foreign company," SEDD said.
Sultan Abdullah Al Suwaidi, SEDD Chairman, said that the Department’s announcement of the list of economic activities available for foreign ownership confirms Sharjah’s eagerness to attract more foreign direct investment and highlights its efforts to enhance its competitive business environment.
"These efforts aim to encourage investment in Sharjah, attract more new international investors, and contribute to revitalising the local economy and driving economic development, to enhance the Emirate’s position on the local and global investment map," he continued.
Ajman offer full ownership
Meanwhile, the Department of Economic Development in Ajman (Ajman DED) also decided to open free ownership of economic activities in the commercial and industrial sectors to foreign investor at 100 per cent ownership.
The decision was taken in line with the UEA's strategic vision in promoting a competitive modern and global investment environment, and the recent amendments to the Commercial Companies Law and in implementation of the decision of the Ajman Executive Council.
In this regard, the department has approved more than 1,000 economic activities for foreign investment, with the exception of economic activities with a strategic impact, which were agreed upon during the meetings of the Strategic Impact Economic Activities Committee headed by the Ministry of Economy, and details of these activities will be announced at a later time.
In this context, Sheikh Ahmed bin Humaid Al Nuaimi, Representative of the Ruler of Ajman for Administrative and Financial Affairs and Chairman of the Ajman DED, said this decision is an important step that translates the new government's policy and strategic visions by providing a competitive infrastructure for investment.
He said the initiative will contribute to facilitating doing business and increasing the attraction of foreign direct investment to various vital sectors in the emirate of Ajman that will continuously promote such developments and decisions and support economic diversification and sustainable development.
"We will always strive to provide the appropriate investment environment for investors,” he said.
Regarding the advantages and facilities that the Ajman DED will grant to foreign investors, Abdullah Ahmed Al Hamrani, director-general of the Ajman DED, said the department has prepared a policy of foreign investment and external promotion, which aims to enhance the investment environment in the emirate and provide a competitive investment environment, which should be continuously and periodically promoted to attract global investments.
"In line with its relentless quest to develop and improve the investment environment, the department periodically review, in cooperation with its strategic partners, the incentives and facilities granted to investors, and constantly communicate with the busi-ness community to provide quality and competitive services,” he said.