New laws on the anvil to boost investment

UAE’s Ministry of Economy is preparing to promulgate a host of new laws to modernise the current legislative system and improve the business environment in line with the UAE Strategic Vision for 2010.

"The Ministry of Economy is laying the final touches on Competition Law, Companies Law, Auditors Law, Foreign Investment Law, Industry and Industry Ownership Laws, Certificate of Origin Law, Anti-Fraud Law and the draft of the Arbitration Law,” Sultan bin Saeed Al Mansouri, UAE Minister of Economy, said.

Addressing an event organized by the Dubai Chamber of Commerce & Industry, Mansouri said preparations are under way to launch a batch of new laws.

“We believe that the new regulations will help us address concerns regarding commercial regulations and arbitration, and promote efficiency, transparency, and investor confidence in the business sector", he said in his keynote address on Sunday in Dubai.

“All these laws being drafted encompass lessons from the past, realities of the present, and goals for the future. Dubai Chamber continues to play a pivotal role in making sure that the new laws will address the needs of our business community. The visionary leadership of the UAE has continued to invest in this country's social and economic infrastructure even through the most difficult period for its economy", the minister said.

The Competition Law has been finalised by the Ministerial Legal Committee and will now be sent to the Cabinet. The law will encourage competition and curb monopoly practices in line with the recommendations of the World Trade Organization during its last review of the trade policy regime of the UAE while the new Companies Law will make it mandatory for companies in the UAE to put a general corporate governance framework to ensure protection for shareholder's rights, transparency, and disclosure.

The Suhoor gathering was attended by Abdul Rahman Saif Al Ghurair, Chairman, Majed Al Shamsi, 1st Vice Chairman, Hisham Al Shirawi, 2nd Vice Chairman, Eng Hamad Buamim, Director General, Dubai Chamber; Counsul Generals, heads of business groups, a host of VIP guests representing the business community in Dubai and members of the local media.

Acknowledging the role of Dubai Chamber in representing the business community of Dubai,  Sultan Bin Saeed Al Mansouri informed that the UAE has now created the perfect platform for a more solid and sustainable growth.

"We look to the private sector to make use of this opportunity and carry this country forward on the path of its development. From finance and real estate, to education and healthcare, the UAE has an unmatched infrastructure and opportunities. You are most welcome to explore and develop as many of you have done in the past. Together, we can make this journey into the future a fruitful one," he said.

Al Mansouri pointed out that the global financial crisis has brought into focus the investment opportunities available in small and medium enterprises. "The way the small and medium enterprises (SMEs) weathered the global economic crisis has been an eye-opener for countries around the world. The UAE has already come a long way in tapping the potentials of this sector to build on our first-mover advantage in SMEs," said Al Mansouri.
“The UAE was one of the first governments in the world that reassured investors and businesses by securing deposits, propping up the banking sector with enough liquidity, and initiating steps to fill gaps in the legal and regulatory framework of the country,” he said.

Citing the recent cooperation with South Korea, which is one of the strongest SME sectors in the world, Al Mansouri added, "One of the fundamental requirements to promoting investment and investor confidence in SMEs is to clearly define this business sector. The Ministry of Economy is currently co-ordinating with its partner agencies to reach a broadly applicable definition for SMEs. This will clearly enable the SME sector to leverage its strengths and acquire necessary legal guarantees and financial support." He said the UAE has traditionally been known for nurturing entrepreneurial spirit and growing start-ups into world-leading businesses. A liberal tax regime, a robust banking sector, and dedicated free trade zones, among many others, have ensured that entrepreneurs benefit in terms of policies and infrastructure.

He said that the UAE is currently the Arab World's second leading destination for foreign capital and its total FDIs stood at $69 billion in June this year.

During his welcome speech, Buamim informed the gathering that the export figures of recent times and sectoral performances are best indicators to sum up the trend that shows encouraging figures from our members' export and re-export activities. Dubai's non-oil trade soared 18% in the first half of the year which valued at Dh279 billion compared to Dh237 bn over the same period last year, he said.

Reaffirming Dubai's status of a sound investment destination in the region Buamim cited the example of the number of passengers travelling through Dubai International Airport, which clocked a record of 4 million passengers in July while the hotel occupancy stood at 80 per cent in June, the timely launch of the Dubai World Central's Al Maktoum International Airport's cargo hub, the fast expanding Dubai Metro and other infrastructure spending by the Government which he said will generate further opportunities for businesses and investors alike.

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