The UAE is atan advanced stage of drafting a foreign investment law
that would allow 100 pe rcent foreign ownership of businesses in some
sectors, the economy minister said on Monday.
Sultan bin Saeed Al Mansouri, speaking at an international investment
conference in Dubai, did not specify the sectors or say when the law
might be passed.
Tthe initiative may mark a more aggressive push by the Arab world's
second biggest economy to attract investment. At present, foreigners
generally cannot own more than 49 per cent of any UAE firm unless it is
incorporated in a special free zone.
A new companies law, anticipated to take effect within months, was
originally expected to relax this restriction, but that reform was
dropped because of strong opposition from someEmiratis who feared they
could lose out to foreigners.
Mansouri said on Monday, however, that the UAE was determined to
diversify its economy beyond oil and saw foreigninvestment as a key way
to do this.
"Economies face pressures from changes in the international environment, including the drop of the oil price," he said.
While Mansouri did not say how the new foreign investment law would
work, it may require fully foreign-owned firms to transfer technology in
sectors that are strategically important for the UAE. Officials have
previously said they are keen to attract technology for industries such
as aerospace.
New foreign direct investment (FDI) in the UAE rose 25per cent to $13
billion in 2014, Mansouri said, adding that the government aimed to
raise FDI to 5 per cent of gross domestic product in coming years. GDP
was Dh1.540 trillion ($420billion) last year, he said.