UAE President His Highness Sheikh Khalifa Bin Zayed Al Nahyan issued a law that no longer needs to have UAE citizens as sponsors. Thus, foreign investors have the opportunity to own one hundred percent of the company, licensed and registered in the UAE.

According to the Vice President and Prime Minister of the UAE, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, a favorable legislative environment has now been created in the country for the creation of enterprises in order to increase the competitiveness of the UAE.

“As per the Commercial Companies Law, Law No. 2 of 2015, foreign shareholders were limited to owning a maximum 49 percent in a 'limited liability company' (LLC) operating as an onshore UAE business. This requires an Emirati individual or 100 percent Emirati-owned company to hold the balance 51 percent share as a local sponsor.

The amended law allows natural and legal persons to establish companies without the need for a specific nationality. The law, however, will not apply to some companies that are excluded based on decisions by the Cabinet and those that are either wholly-owned by federal or local governments or their subsidiaries. " - write gulfnews.

Key initiatives:

The new amendments allow unincorporated companies to engage in investment activities on behalf of third parties if permitted by the laws governing those activities.
The amendments included some provisions for organizing the business of limited liability companies as well as legal entities.

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From December 1, 2020, Foreigners Will Be Able To Own 100% Of A Business In The UAE