One Central – Offices No. 4 Dubai | Office: +971 45686046
ITQAN is a company that specializes in business setup and business growth

New Investment Law in the UAE

٠٧ فبراير New Investment Law in the UAE

Invest in Dubai. In this article, we will review everything related to the new investment law in the Emirates, as we will learn about the new investment law in the Emirates and discuss its implications and various aspects. The Emirates has recently become one of the countries that attract investors through full support for them in all economic fields, and also through the enactment of new laws that provide foreign and Arab investors as well as local investors with all the powers to make successful investments.

What is the importance of the new investment law in the UAE?

The new law offers many advantages that help in investing in Dubai by providing all sources of attraction for foreign and Arab investors as well as local investors. The importance of the new law is due to several important points that it provides in a different way to support the economy, which are:

  • The new law supports ownership rights for foreign investors.
  • The project is fully supported by investment companies in the UAE in some sectors of the economy.
  • The new law allows the founder of the company to own 100 percent of it, which contributes to solving many of the problems facing investors that cause disruption to the company’s balance due to the lack of an ownership law.
  • Asset ownership in companies at the end of 2019 reached 49 percent.
  • The new law applies to strategic sectors only so far until further details emerge.

Consequences of implementing the new investment law in the UAE:

The new law, if fully implemented, will yield many results, which are the results that all investors aspire to when thinking about the obstacles they may face when thinking about how to invest in Dubai. Here are some of those effective results:

In many of the free zones that greatly support investment in Dubai and are also among the largest economic pillars that the Emirates in general and Dubai in particular rely on in the pillars of investment, the new law allows the right to own property in those free zones that include thousands of companies operating in various fields of the economy.

The Dubai Free Zone is a role model in stimulating the economy and also greatly supporting investors through its high ability to adapt to the new law and the ability to give the greatest opportunities to investors according to what is stipulated by the new investment law and facilitating the establishment of a commercial license in Dubai.

The role of the new investment law in attracting investments:

The new investment law has been postponed for long periods, and it is time for a broad launch to contribute significantly to the advancement of foreign investment, as it prepares the country for a new phase of economic prosperity and rising economic growth.

In order to support foreign investments, the state has decided to pump more than $20 billion in the coming period, which is a much higher amount than what was provided in the previous period, as it previously reached a maximum of $11 billion, which now puts the Emirates among the countries that investors from everywhere head to.

Although the UAE occupies a high position among the economically advanced countries in the world, the UAE seeks further progress as it is now included in the list of the 10 most attractive countries for investment in the world as it is a fertile environment for foreign direct investment.

The state, according to the new law, facilitates the conditions for establishing a company in the Gulf through the joint Gulf States Group law.

Foreign ownership of companies in the UAE is regulated, which makes it easier for investors to carry out all stages of investment in Dubai smoothly without the complications they faced in the past, which helps attract foreign investors from different countries of the world, and also works to benefit from the UAE’s distinguished geographical location, which makes the UAE the first destination for investment in the Middle East and the Arab world.

Investment costs in Dubai

The investment costs in Dubai are calculated by conducting a study for any specific project. According to the activity or field you have chosen, the value of the investment costs in Dubai is determined, and also according to the extent of expansion in the field, as the costs differ whether they are small projects, for shops or the like, and between whether the investment idea is to establish a factory or a company. You can also establish a company in Dubai at the lowest costs by contributing to companies that are already established.

Conditions for establishing a company in Dubai

The UAE is working to facilitate all means of investment in Dubai through the new investment law, as it makes the conditions for establishing a company in Dubai simple and uncomplicated. Invest in Dubai through several important steps that must be followed to meet the conditions for establishing a company in the free zone in particular or in Dubai in general:

  • Determine the activity: The first step to start investing in Dubai is to determine your activity. This also depends on choosing the activity that suits the location and also the activity being within the needs of the population consuming the product in the location you have chosen and the activity that has been determined.
  • Commercial registration: This is the second step, where you can specify the trade name of the company you are establishing and based on that you can start it, as you must meet all the requirements of the Department of Economic Development in order to be able to obtain approval for the registration of your company. There are some conditions in order to obtain the approval of the Department of Economic Development for the commercial registration, which are:
  1. The trade name you choose must not violate public taste and must not contain inappropriate phrases or words.
  2. The legal form of the company must be linked to the trade name.
  3. The company name must not be registered by another company.
  4. Also, the trade name should reflect the product or activity it offers.
  5. The trade name must be free of the word “Allah” or “Lord” or any of the beautiful names of God.
  6. The trade name must not include any names of government institutions or political slogans.
  • Initial approval: You must first obtain approval from the General Directorate of Residency and Foreigners Affairs, and then we move on to initial approval from the rest of the relevant authorities.
  • Determining the company’s location: It is necessary for a company to be established in Dubai for foreigners to have a fixed location and legal headquarters in Dubai in particular or in the Emirates in general, as this requires you to obtain a lease contract authenticated by the Real Estate Regulatory Authority in Dubai.
  • Approval of the relevant authorities in the company: such as transportation authorities, the authorities responsible for insurance in the company, and legal consultations.
  • Pay the cost of a commercial license in the Dubai Free Zone.

In the end, we have reviewed everything related to the new investment law in the Emirates, how to establish a company in Dubai, and also the costs of investing in Dubai.