The launch of the new investment law in the UAE reflects the country’s ambitious vision to enhance the business environment and attract global investments. This law, which was issued pursuant to Federal Law No. 22 of 2021, is considered a qualitative shift in UAE investment policies, as it provides a flexible and stimulating legal framework for investors. By allowing full foreign ownership of companies in most sectors, simplifying registration procedures, improving transparency and protecting investor rights, the new UAE investment law enhances the UAE’s attractiveness as a global investment hub. The law also supports innovation and technology, and encourages investment in sustainable projects, which contributes to diversifying the economy and promoting sustainable growth. In this context, the new investment law is an important strategic step towards achieving sustainable economic development and strengthening the UAE’s position as a major center for global investments.

The new investment law in the UAE

The new investment law in the UAE

The new investment law in the UAE, issued under Federal Law No. 22 of 2021, represents an important update to the investment system in the country. Here are the main points of the law:

1. Full foreign ownership : The law allows foreign investors to own 100% of companies in most economic sectors, without the need for a local partner. This change enhances the UAE’s attractiveness as a global investment destination.
2. Expanding investment activities : The law expands the scope of activities in which foreigners can invest, including sectors that were previously limited to local investors or required a local partner.
3. Improving the business environment : The law provides facilities for company registration procedures, reduces bureaucracy and lowers the costs associated with establishing companies.
4. Enhancing transparency and protecting investors’ rights : The law includes strict transparency requirements and provides greater protection for investors’ rights, which enhances confidence in the investment system and reduces risks.
5. Encouraging innovation and technology : The law focuses on supporting investments in the fields of technology and innovation, which enhances the development of advanced sectors and attracts international companies.
6. Sustainable development : The law encourages investments that contribute to sustainable development and the green economy, which enhances environmental sustainability and economic development.
7. Facilitating procedures : The law provides simplified procedures for establishing companies and reducing administrative costs, which contributes to improving the business environment and making it more attractive to investors.
8. Modernizing laws and legislation : The law is in line with the latest international practices in the field of investment, and reflects the UAE’s commitment to strengthening its position as a global center for investment.

This law represents a qualitative shift in the UAE’s investment policy, enhances the UAE’s role as a major center for foreign investments and enhances economic growth and sustainable development.

What is the importance of the new investment law in the UAE?

The UAE Investment Law represents an important strategic step in enhancing the business and investment environment in the country. Here are some of its importance:

1. Enhancing the attraction of foreign investments : The law allows foreign investors to own 100% of companies in most sectors, which increases the attractiveness of the UAE as a global investment center.
2. Improving the business environment : The law provides simplified procedures for establishing companies and reducing administrative costs, which contributes to improving the business environment and making it more attractive to investors.
3. Expanding the scope of investment activities : The law allows investment in new sectors that were not previously available, which enhances economic diversification and creates new opportunities for investment in areas such as technology, renewable energy, and health.
4. Enhancing transparency and protecting investor rights : The law includes higher transparency requirements and greater protection of investor rights, which enhances confidence in the investment system and reduces risks.
5. Encouraging innovation and technology : The law encourages investment in innovation and technology, which enhances the development of advanced sectors and attracts technology-focused companies.
6. Stimulating sustainable economic growth : The law supports investments that contribute to sustainable development and the green economy, which enhances environmental sustainability and long-term economic development.
7. Strengthening international cooperation : The law contributes to improving international economic relations and enhances the UAE’s position as a major center for trade and investment worldwide.

Overall, the new investment law in the UAE represents an important step towards improving the investment environment and attracting more foreign investments, which supports economic growth and sustainable development in the country.

Consequences of implementing the new investment law in the UAE

Implementing the investment law in Dubai has several consequences, including:

1. Enhancing the attraction of foreign investment : The law allows foreign investors to own 100% of companies in most sectors, which enhances the attraction of foreign investments and makes the UAE a more attractive destination for investors.
2. Improving the business environment : The law includes procedures to facilitate the establishment of companies and reduce administrative costs, which contributes to improving the business environment and increases the flexibility of investment operations.
3. Enhancing transparency : by imposing new requirements on companies to disclose financial and administrative information, which enhances the transparency of markets and reduces opportunities for corruption.
4. Expanding the scope of investment activities : The law expands the activities in which foreigners can invest, and includes new sectors that were not previously available, which opens new investment opportunities.
5. Stimulating innovation and technology : The law encourages investment in technology and innovation, which enhances the development of sectors such as financial technology and artificial intelligence.
6. Improving investors’ rights : The law provides greater protection for investors’ rights and includes mechanisms for settling disputes, which increases confidence in the judicial and investment system in the UAE. These amendments aim to strengthen the UAE’s position as a global center for investment and stimulate economic growth and sustainable development.

The role of the new investment law in attracting investments

The new investment law in the UAE plays an important role in attracting investments in multiple ways, including:

1. Full foreign ownership : The law allows foreign investors to own 100% of companies in most sectors, which enhances their ability to fully control their investments and increases the attractiveness of the UAE as an investment destination.
2. Improving the business environment : The law provides simplified procedures for establishing companies and reducing administrative costs, making the process easier and more effective for investors.
3. Expanding the scope of investment activities : The law includes new sectors that were not previously available to foreign investment, which opens new doors for investment in various fields such as technology, health, and renewable energy.
4. Enhancing transparency and protecting investor rights : The law includes strict transparency requirements and greater protection of investor rights, which enhances confidence in the investment system and reduces risks associated with investment.
5. Encouraging innovation and technology : The law supports investments in innovation and technology, which promotes the development of new sectors and attracts international companies looking for a technology incubator environment.
6. Facilitating procedures : The law reduces bureaucracy and enhances the efficiency of procedures related to establishing companies, making the process smoother and faster for foreign investors.
7. Supporting sustainable investments : The law encourages investments that promote sustainable development and the green economy, which attracts investments that focus on sustainability and environmental protection.

Through these amendments, the new investment law strengthens the UAE’s position as a global center for attracting investments and creates a favorable environment for business and investment.

Investment costs in Dubai

Investment costs in Dubai vary based on the type of company, its activity, and the location chosen. Here’s an overview of the basic costs associated with investing in Dubai:

1. License fees : Includes fees for obtaining a commercial license from the Department of Economic Development (DED) or the competent authority in the free zone. These fees depend on the type of activity and the size of the company.
2. Office rent : You must have a registered address for an office in Dubai. The rental cost varies based on the location and size of the office.
3. Insurance : Some activities require specific insurances such as employee or liability insurance.
4. Capital : The law may require that basic capital be deposited in a business bank account, which depends on the type of company and activity.
5. Registration fees : This includes the costs of registering the company with the competent government agencies, which may include registration fees in the Department of Economic Development or in free zones.
6. Law and consulting costs : You may need legal advice or consulting services to establish the company, such as preparing legal documents and contracts.
7. Work and residence visas : The cost of issuing work and residence visas for employees and investors, which depends on the number of people and visa category.
8. Other costs : These may include trademark registration costs, business permits, and other services related to compliance with local regulations.

Overall, Dubai is an attractive investment destination although costs can be relatively high, thanks to the advanced business environment and modern infrastructure it provides.

Conditions for establishing a company in Dubai

To establish a company in Dubai , there are several conditions and requirements that must be met, which are:

1. Choosing the type of company : You must specify the type of company you wish to establish, such as a limited liability company (LLC), a private joint stock company, or a commercial company. Each type has different requirements and procedures.
2. Determine the commercial activity : The commercial activity that the company will undertake must be determined, as the appropriate license must be obtained from the Economic Department in Dubai.
3. Choosing a company location : Companies need to select a location for their office, which must be registered within the free zone or in one of the recognized commercial zones in Dubai.
4. Preparing legal documents : This includes preparing and submitting documents such as the articles of incorporation, the company’s articles of association, and partner information. You may need to provide a copy of passport and visas for partners and directors.
5. Obtaining the necessary approvals : Depending on the business activity, you may need to obtain additional approvals from competent government agencies, such as the Financial Sector Regulatory Authority or the Ministry of Health.
6. Capital deposit : The required capital must be determined and deposited according to the type of company, and limited liability companies may need to deposit a certain amount in a bank.
7. Company Registration : The company must be registered with the Department of Economic Development in Dubai to obtain the official commercial license.
8. Insurance : Some activities require obtaining specific insurance, such as employee or liability insurance.
9. Opening a bank account : A business bank account must be opened in the name of the company to facilitate financial transactions and money management.
10. Licenses and Permits : You may need to obtain additional licenses based on the business activity such as business licenses, export licenses, or other permits. Once these terms and requirements are met, you can start company operations in Dubai legally and orderly.

In conclusion, the new investment law in the UAE is considered a pivotal step in enhancing the investment environment and stimulating economic growth in the country. By allowing full foreign ownership of companies, simplifying procedures, improving transparency and protecting investors’ rights, the law provides an advanced legal framework that supports the UAE’s vision as a global investment hub. The law also enhances support for innovation and technology, and encourages investment in sustainable projects, which contributes to achieving sustainable economic development. With these amendments, the UAE continues to consolidate its position as an attractive destination for investors from all over the world, opening up broad horizons for growth and expansion in an advanced and prosperous business environment.

Frequently asked questions about the new investment law in the UAE