It will be soon allowed to own 100% of the shares of companies by foreign shareholders in the UAE. However, initially this innovation will affect only specific global corporations. As it became known, the first goal of the new law will be attraction of companies operating in certain sectors to the country, for example, nuclear energy.
According to experts, the law will not apply to all companies, including retailers and small companies with limited liability, at least at the initial stages. The attraction of such enterprises is not a priority for the government now. It is now seeking to attract capital, companies from certain sectors, and first and foremost technology companies with a worldwide reputation.
According to experts, among the first companies that will be able to experience all the benefits of the new law are such giants as Apple, Google and Tesla. Thus, the possibility that global companies will come to the UAE is increasing. In addition, the country is interested in large investors.
So, we are waiting for more detailed information regarding the investment limits established at the legislative level. According to some analysts, the first companies to which the law will apply will be those in which involvement the state is particularly interested. These companies include companies that work in the field of technology and advanced medicine.
Although initially the action of a new law will be limited, eventually it will spread to all other sectors, and its provisions will become the common norm of doing business.
However, today there is some concern among the citizens of the UAE. Many fear that allowing foreigners to own companies will continue to contribute to the existing imbalance in society: today, 90% of the population are expats. The situation in the UAE is quite unique and can not be compared with the situation in any other country.
One of the ways to solve such problems is innovative concept, such as temporary sale of property. Foreigners do not want to rent a house, they want to own property. In this case, an innovative concept of a temporary property contract may be a good option. Implementation of such a concept is possible. And there are already successful examples of it in the world. In fact, this is real property, but limited to a certain time period.
This concept takes into account the interests of the two sides – foreigners and local people. This concept can be a successful tool for reconciling the interests of foreigners who want comfort, and local citizens who may have some concerns about the sale of real estate to foreigners.