s
Jiwon Ha (j.ha@tamimi.com)
28 November 2018
New FDI Law in UAE
Series of Legislative Reforms Highlights of New FDI Law FDI Committee & FDI Unit Negative List & Positive List Impact on Your Business
AGENDA
Series of Legislative Reforms
Series of Legislative Reforms
Federal Law No. 2 of 2015
(UAE Commercial Companies Law)
Federal Decree-Law
No. 18 of 2017
(Sep. 2017)
UAE Cabinet
(20 May 2018)
Dubai DED – Decree No.
20 of 2018
(29 May 2018)
“New FDI Law” - Decree Law
No. 19 of 2018
2015 Present
Federal Law No. 2 of 2015 (UAE Commercial Companies Law) - Article 10. Foreign Ownership Restriction
Series of Legislative Reforms
Federal Decree-Law No. 18 of 2017 (Sep. 2017)
- UAE Cabinet’s flexibility to permit increased levels of foreign ownership
Series of Legislative Reforms
UAE Cabinet (20 May 2018) - Long Term Residency Visas
- 100% Foreign Business Ownership
Dubai DED – Decree No. 20 of 2018 (29 May 2018) - Waiver of corporate fines
“New FDI Law”
Decree Law No. 19 of 2018
Highlights of New FDI Law
Highlights of New FDI Law
Foreign Ownership
Highlights of New FDI Law Territorial Sway
of the Decree Positive List
Negative List New Government
Bodies – FDI Unit / FDI Committee
FDI Committee & FDI Unit
FDI Committee & FDI Unit
To be formed pursuant to a resolution by the UAE Cabinet Role: Responsible for referring recommendations to the
Cabinet in connection with Sectors, Activities and Benefits to be granted to the FDI
Projects.
FDI Committee
To be set up in the Ministry of Economy (MOE)
Role:
• Propose the policies and procedures relating to FDI
• Submit recommendation to the Committee regarding the Projects
• How best to implement the FDI Projects
FDI Unit
Negative List & Positive List
Negative List
Oil exploration &
Production
Investigation, Security & Military
Banking &
Financing Activities Insurance
Including manufacturing of military weapons, explosives,
equipment, devices and uniforms
Water & Electricity Services
Fisheries &
Related Services
Post,
Telecommunication and other Audio
Visual Services
Road & Air Transport
Negative List
Printing &
Publishing
Commercial Agent Services
Medical Retail (including pharmacies)
Positive List
FDI Law grants the UAE Cabinet the authority to issue “Positive List”
FDI Committee will consider:
- Integration with strategic plans of the UAE;
- Achieving the best profit and added value to the UAE economy;
- Raising innovation and providing job opportunities and training;
- Limiting negative effects on incumbent UAE companies;
- The foreign investor’s level of competency & expertise;
- The best use of modern technology; and
- Achieving a positive impact on the environment
Positive List
UAE Cabinet may:
- Determine the specific Emirate
- Mandate the level of foreign ownership (whether 100 % or any less percentage)
- Place requirements in respect of the type of legal entity - Set minimum capital requirements
- Impose Emiratization requirements
- Allow certain exception from the current legislation
Positive List
World Economic Forum’s Global Futures Council Meeting in Dubai on Nov. 12, 2018
Aims to have the Positive List by 1Q, 2019 Expected Sectors
- Technology - Outer Space
- Renewable Energy - Artificial Intelligence
Impact on Your Business
Impact
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Jiwon Ha
j.ha@tamimi.com
