Investors have begun enforcing 100% foreign holdings in Sharjah’s Economic Development (SEDD) & ADED (Ajman department of economic development). This is done without special capital requirements or extra costs for overseas investors. The judgment also allows, international corporations to operate in the emirates without the necessity for an agent of a foreign corporation. More than 1,000 foreign investment economic operations were approved by the Department of Economic Development in Ajman (Ajman DED), with the exclusion of “strategical economic activity,”
The Economic Development Department of Sharjah is responsible for the economic development of the city. SEDD’s major goal is to work tirelessly to accomplish economic growth in the Emirate and to provide the greatest services and facilities to investors.
New Commercial Companies Law
The UAE’s New Commercial Companies Law, which went into effect on June 1, 2021, legalises 100% foreign ownership in the country. Non-Emiratis from all over the world will be able to establish onshore businesses in the country.
This change allowed investors of any nationality to start new businesses.
The UAE has made several legislative changes in recent months to maintain its progressive growth, particularly in the areas of immigration and society.
With the new Commercial Companies Law came into action on 1st June 2021 Sharjah & Ajman have put up a proposal to grant 100% ownership to foreign investors in commercial and industrial companies.
Sharjah’s Department of Economic Development (SEDD) declared that, from the 1st of June, it will respect the new trade regulations and will award 100% ownership to international investors. This judgment did not provide for criteria like the capital or the additional charges stated, which permit the branches of international corporations but did not allow the operation by an agent of a foreign firm in the Emirates.
The introduction of a list of economic activities open to foreign ownership “confirms Sharjah’s determination to attract more external direct investment” and “emphasises Sharjah’s efforts to strengthen Sharjah’s competitive business climate,” said Sultan Abdullah Al Suwaidi, Chairman of SEDD.
He further continued “These measures seek to boost investment in Sharjah, attract more new international investors, and contribute to revamping the local economy and driving economic development, to improve the Emirate’s position on the local and global investment map,”
SEDD is always working to enhance its corporate environment by making it simpler for Sharjah to do business “According to the company’s President, Sultan Abdullah bin Hadda Al Souwaidi. “The incredible prospects offered in banking, trade, and commerce attract international investors to Dubai and Abu Dhabi.
Similarly, The Ajman Department of Economic Development (Ajman DED) has also decided to enable foreign investors to purchase commercial and industrial properties in their entirety.
The Department of Economic Development in Ajman was established to attract foreign direct investment and maximise the emirate’s economic potential. Ajman was the first city in the United Arab Emirates to give international investors 100% freehold in 2004.
It was decided to follow the strategic objective of the UAE to create a competitive modern and global environment for investment and to implement recent modifications to the law on commercial companies. Over 1,000 foreign investment economic operations, other than those agreed upon at the Strategic Impact Committee, were approved by the Department under the supervision of the Ministry of the Economics, and more information will be published.
“By providing competitive investment infrastructure, this move is an important step in the direction of the new government’s policy and strategic vision.” Sheik Ahmed bin Humaid Al Nuaimi, Ajman’s Representative for Administrative and Financial Affairs and Chairman of the Ajman DED, made the statement. He went on to say that the decision would make conducting business easier and attract foreign direct investment to numerous critical industries in the emirate of Ajman, which would continue to support such advancements and options while also assisting economic diversification for long-term prosperity.
“We will constantly strive to provide the greatest possible investment atmosphere for investors,” he added.
According to Abdullah Ahmed Alhamrani, director-general of the Ajman Department of Economic Development, the department has invented a foreign investment and promotion policy aimed at promoting investment in the UAE and creating a competitive environment for ongoing and periodic investment. Given the benefits and opportunities, the Department would welcome international investment.
Post this implementation, Chemmannur International Group, a gold jewellery retailer, and FreshToHome, a fresh food e-commerce site, are among the first Indian companies to seek full control of their UAE businesses following revisions to foreign owners. Seems like post this decision the industries are going to witness a lot of changes in the coming time.
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