Q&A on new visa, investment rules
OFFICIALS AND BUSINESS LEADERS SAY THE COUNTRY’S ECONOMIC COMPETITIVENESS WILL RISE GLOBALLY AFTER CABINET’S DECISION
The UAE Cabinet’s decision to allow 100 per cent foreign ownership of companies in the UAE with a 10-year visa for investors, scientists, doctors, engineer, entrepreneurs and innovators will be a major incentive to attract foreign direct investment into the country, according to top government officials and experts.
In a statement issued yesterday, UAE Minister of Economy Sultan Bin Saeed Al Mansouri said that the new 100 per cent ownership system for global investors will bolster the UAE’s image on the global investment map and major global firms will now be keen to set up branches in the country.
The strategic step would also increase the inflow of foreign direct investment particularly in key sectors that help boost trade and increase the number of projects and firms, which in turn will aid the prosperity of the business environment and the growth of the national economy.
He also highlighted that the UAE offers several investmentfriendly advantages and incentives, whether it be in terms of strategic location, political security and stability, social and cultural openness, active economic policies, among other things.
“Over the past years, these factors have succeeded in establishing UAE’s position as the first Arab country for attracting foreign investment. However, the new directives allowing 100 per cent ownership to foreign investors, the provision of 10-year visas for investors and their families and for those with advanced skills and expertise, represents a significant first step among many in developing a system of investment
and development legislation in the country.”
Saif Mohammad Al Hajiri, Chairman of the Department of Economic Development, Abu Dhabi said the new announcement reflects the wise approach of the UAE leadership and government in moving towards building a strong and integrated national economy based on competitiveness at a regional and international level.
“The decision reveals the transparency and clarity of policies implemented by the UAE’s federal government, a key incentive in attracting foreign direct investments to the country,” said Al Hajiri in a statement.
He also added that Abu Dhabi DED plans to use these decisions to implement initiatives as part of its programme to attract more FDI into the capital.
Hamad Bu Amim, President and CEO of the Dubai Chamber of Commerce and Industry said the decision reflects the wise vision of the leadership and its strong commitment to stimulating the economy and adapting to the needs of its fastgrowing business community.
“The move sends a clear message that the UAE is a competitive market which is open to international investors and conducive to business growth. At the same time, I expect that the new measures will help raise the UAE’s global profile as a preferred investment destination, positively impact the local business environment and ultimately enhance the country’s economic competitiveness.”
Y. Sudhir Kumar Shetty, President of the Indian Business and Professional Group in Abu Dhabi said the new measures by the UAE government will not only boost confidence in the UAE’s economy but will also attract more tourists to the country.
“The UAE will become an investment friendly destination. There will be a long-term commitment from investors as visas will be issued for a ten year period,” said Shetty, adding that investments from Indian businessmen will further go up due to the latest decision by the UAE Cabinet.
Chinese Business Council in the UAE welcomed the new rules to allow 100 per cent foreign ownership of companies.
“We are very much looking forward to the increasingly open market in the UAE. More and more Chinese companies will set up companies to contribute to the economic development,” said Qipu Wen, Executive Director of Office of Chinese Business Council.
“The UAE has always strived to be at the forefront of business reform in the wider Middle East region,” said Danny Sebright, President of the US-UAE Business Council. “These latest reforms related to 100 per cent ownership in the UAE of foreign people and entities, as well as long-term visas for foreign individuals will be a much-needed boost to the UAE’s efforts to attract best in class companies and the brightest people offering innovative and highly competitive services and products.”