The United Arab Emirates will introduce a new company law in six months which will allow majority foreign ownership in some sectors, the country's Minister of Economy said on Wednesday.
"It will be ready within six months," Sultan bin Saaed al-Mansouri (pictured above) told Reuters. "We will allow that wherever it helps the economy of the UAE," he said, declining to name the sectors.
Under current law, companies must be 51 per cent owned by a local partner. The exception to this is companies registered in ‘free zones’ such as Dubai Media City and the Dubai International Financial Centre.
Speculation has been rife about the new law, especially regarding which sectors it may be applied to. It is expected that the new legislation law could be applied to the UAE’s undeveloped insurance sector as a way to encourage foreign involvement and increase competition.
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