On 24 May 2021, the Dubai Department of Economy (DED) published an important update on the application of the 100% foreign ownership rules which will be effective from 01 June 2021.
Briefly the updates announced are as follows:
- 100% ownership to apply to 1,000 commercial and industrial activities (for context DED now has a total 2300 activities )
- No specific capital or any additional fees for foreign investors
- Branches of foreign companies don’t require a local company agent
- The 100% ownership does not extend to professional activities
- The 100% ownership does not extend to the economic activities with a strategic impact, to be defined in the awaited Cabinet Resolution. The activities with a strategic impact will be limited to 7 sectors
- Investors are allowed to conduct professional business in Dubai provided the appointment of a local service agent.
As reported in our previous update, Abu Dhabi Department of Economic Development published a list of 1,105 commercial and industrial activities eligible for 100% foreign ownership, the list can be found here.
It’s expected the list of activities for Dubai will be available on 01 June and Links Group, an Equiom company, is closely monitoring updates from the competent authorities concerning the implementation of the 100% ownership rules and strategic impact sector clarification as well as other developments associated with the introduction of the new foreign ownership policy. As soon as updates become available, we will provide further updates.
For more information or if you have any queries related to this update please do not hesitate to get in touch with us on firstname.lastname@example.org or +971 (0) 4 446 3900.
Disclaimer: All information provided in this article was correct at time of publishing.