Foreign Direct Investment (FDI) in the UAE is regulated by the Federal Law by Decree No. 19 of 2018 UAE Foreign Direct Investment
It allows foreign investors to own up to 100 per cent of the business for activities which fall under the positive list. There are certain sectors and economic activities that are NOT permitted for FDI.
Before the issuance of this law, foreign investors could hold only 49 per cent of the company’s shares, while their partners who would be UAE citizens would own the other 51 per cent share.
A foreign shareholder and a local shareholder agree to establish a company, in the ratio 49%: 51%; consequent to this arrangement, the foreign shareholder controls and manages the company.
Few tips are:
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