Mission of the Emirates Investment Authority for Foreigners

In this article, we will talk about the mission of the UAE Foreign Investment Authority, as the UAE is considered one of the best countries in the world in terms of investment, whether the investment in Dubai is local or foreign, and the UAE encourages investment in it, and the presence of free zones in it is a contributing factor in attracting investment in Dubai.

 Foreigners seek to invest in Dubai by establishing a company in Dubai for foreigners , and the mission of the UAE Foreign Investment Authority is considered one of the most important bodies concerned with encouraging foreign investment in the Emirates.

Definition of Dubai Investment Authority:

The Dubai Investment Authority is a government entity affiliated with the UAE government, and has assets estimated at approximately $800 million, which are preliminary estimates of these assets, but the real value of these assets has not been officially announced yet.

The Dubai Investment Authority was established in 1976 by Sheikh Zayed bin Sultan Al Nahyan, the founder of the modern UAE. The aim of establishing the Investment Authority was to exploit the state’s funds in a safer manner.

Before the establishment of the Investment Authority, the government was working in gold, oil and mining investments in general, but recently the UAE government began adopting strategic plans for post-mining or oil investment, and therefore the Investment Authority was established, but at first the purpose of establishing the Investment Authority was not understood.

Achievements of Dubai Investment Authority: 

The Investment Authority has achieved many accomplishments in the field of investment in Dubai, including the following:

1. In 2007, the Investment Authority signed an agreement protocol with the American Citigroup, one of the most important banks in the United States of America, and seven and a half million dollars were invested through this agreement.

The Investment Authority receives from this agreement an investment of 4.9% of the total value of the bank, and this investment is considered one of the most important Emirati investments at this time. However, the opposite happened, as the bank breached the terms of the agreement with the Investment Authority, which is to convert the Authority’s ownership bonds into shares for a percentage of the bank’s value. After that, the UAE Investment Authority requested huge financial compensation for the damage caused to it by breaching the terms of the agreement.

2. Real estate investment is considered one of the most important investments in Dubai. The Dubai Investment Authority signed a contract with Emaar to establish its largest residential complex in 2010.

Procedures to encourage investment in the UAE Investment Authority:

The UAE Investment Authority works to provide all means of comfort and security for the investor, whether local or foreign, and also facilitates the conditions for establishing a company in Dubai, and provides special facilities for establishing a company in Dubai for foreigners.

The facilities provided by the UAE Investment Authority include the following:

1. Facilitating the conditions for establishing a company in Dubai in terms of the required papers, and special facilities for obtaining commercial licenses, as well as special facilities for bringing facilities into the company.
2. Providing security and protection for the investor in terms of residence and investment, such as providing commercial shopping centers, and also providing company locations for ownership or rent, and providing protection and security for these places.
3. Creating a good infrastructure for ease of living and investing in the Emirates.
4. Promoting the principles of respect for others and brotherhood among all residents of the Emirates, as there are many nationalities in the Emirates, and the government is working hard to achieve social justice among them in order to live safely.

Steps to establish a company in the Emirates: 

There are some procedures for the conditions for establishing a company in Dubai, which are:

1. The type of activity of the company must be specified, whether it is a professional activity, a commercial activity, or an industrial activity. The Emirates provides many areas of investment.
2. The company name must be chosen in accordance with the type of activity being carried out in Dubai.
3. Choosing a suitable location for the company to be its headquarters, and all utilities must be included in it, including water, electricity, and means of communication such as telephone and internet. It can be rented or owned, and the company’s rental or ownership contract must be obtained.
4. Documenting the lease or ownership contract for the company’s headquarters with the designated government agencies.
5. Obtaining initial approval to invest in Dubai.
6. Submit all required papers and documents to the UAE authorities to obtain a commercial license to start investing in Dubai.
7. Receive the commercial license and start the activity in the Emirates.

These are some of the conditions for establishing a company in Dubai for foreigners, but we have previously mentioned that the UAE provides all the facilities for establishing companies in it to encourage investment in it, and among these facilities is the instant license. The instant license is obtained without going through all the previous steps, and is done in one step, with a single payment permit, after which the commercial license is obtained and the investment activity begins in Dubai. But there is a condition for this license, which is that it is in the first year of the company in Dubai, and upon renewal, all the company’s papers are submitted to the competent authorities in the Emirates. There are other additional conditions for establishing a company in Dubai for foreigners, as the conditions for establishing a company in Dubai are consistent with the conditions for establishing a company in Dubai for foreigners, but the UAE government has specified some activities that the foreign investor is allowed to work in, and some that he is not allowed to do.

Activities permitted to be practiced in the UAE for foreign investors:

1. All activities related to business management, whether companies or providing consulting.
2. All works related to owning real estate or land.
3. All activities related to stock market speculation, owning and selling stocks.

Activities not permitted to be carried out in the UAE when establishing a company in Dubai for foreigners

1. All investments in airlines, whether by owning an airline, managing its business, or owning stocks in these companies.
2. All investments related to the media, such as owning visual, audio or print media agencies, or even managing these agencies, or owning shares in these agencies on the stock exchange.
3. All mining investments, such as oil and petroleum, precious stones, or gold.

Saudi investment in the UAE: 

Saudi investment in the UAE is considered one of the most important foreign investments in it, and therefore the UAE provides all the facilities related to establishing a company in Dubai for Saudis.

The Saudi investor also always seeks to find a place for himself in the UAE market and benefit from investments there, as well as in the free zones in the UAE.

Among the steps for establishing a company in Dubai for Saudis are the following:

1. Submitting all the papers and documents required to establish a company in Dubai according to the previous steps, and submitting them to the competent authority in the Emirates, which is the Department of Economic Development, which has a special section for establishing a company in Dubai for Saudis.
2. When applying for a commercial license, the fees must be paid within thirty days of obtaining the payment authorization. If payment is not made within six months of obtaining the payment authorization, the commercial license application will be considered void.
3. The company must be registered with the Chamber of Commerce in the Emirates and obtain membership in it.
4. Providing all information related to the company’s full capital in the company’s commercial register.
5. There is one payment authorization for all procedures related to obtaining a commercial license, which is worth three thousand dirhams.
6. The validity of the commercial license begins from the date of issuing the payment authorization.
7. Receive the commercial license and open a commercial register for the company to establish a company in Dubai for Saudis.