Wednesday November 4 2020

News Source: Global Disclosures

Focus: Foreign Investment

Type: General

Country: United Arab Emirates

The Abu Dhabi Department of Economic Development (ADDED) has announced the implementation of the Foreign Direct Investment Law within the Emirate of Abu Dhabi by issuing the “Foreign Direct Investment License” which will enable investors to hold 100 per cent ownership of their businesses in Abu Dhabi.

The license covers 122 different economic activities related to the agricultural, industrial and services sectors, and targets businesses with total capital ranging between AED 2 million to 100 million or higher.

Mohammed Ali Al Shorafa, Chairman of ADDED, said: “The issuance of the ‘Foreign Direct Investment’ license is line with of the provisions of the Federal Law No. (19) of 2018 regarding Foreign Direct Investment, FDI, and as part of the Department’s efforts to further promote positive investment climate and thereby achieve sustainable economic development in Abu Dhabi.”

Al Shorafa noted that ADDED is committed to enhancing the local investment environment and strengthening the Abu Dhabi economy’s competitiveness through policies that provide more investment opportunities in various non-oil sectors. It also seeks to improve the emirate’s legislative environment, ensuring the most ideal way to protect the rights of foreign investors, in accordance with the directives of the Abu Dhabi Government in attracting foreign direct investments to the emirate.

Al Shorafa highlighted that the new license further consolidates Abu Dhabi’s position as a global hub for investment and ease in doing business, adding that creating the list of investment opportunities within various economic sectors and activities applicable for foreign investments will deliver a strong positive impact to the emirate’s investment environment. He further cited that it would encourage investors, spur business development for foreign companies as well as attract businesses in technology and advanced industries, which all contribute to the emirate’s economic diversification policy.

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