Maintaining the advantages of small, citizen-owned companies in the government procurement system

“Economy”: Increasing the number of companies in the UAE to one million within 10 years

• Most economic activities will be 100% open to foreign ownership.

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The Minister of Economy, Abdullah bin Touq Al-Marri said that there are currently 300,000 public, private, and limited liability companies in the UAE, solidarity, and simple recommendations, of which national companies represent 99.3%, and we aim from the new amendments in the Commercial Companies Law to achieve an increase In the number of companies operating in the country, to reach one million companies, over the next 10 years.

Bin Touq confirmed, during a briefing to the ministry, regarding the amendments to the law, that "the new amendments will be applied to the existing and new companies, six months after their issuance, and a committee of the cabinet will be formed to determine the activities with a strategic impact that will be excluded," explaining that most economic activities It will be completely open to 100% foreign ownership.

New adjustments

He noted that the new amendments work to increase the productivity and competitiveness of national companies in the local and global markets, and to preserve opportunities and advantages for small and medium-sized companies owned by citizens in the government procurement system, as well as to accelerate the transformation of small, medium and family companies, in general, into joint stock companies listed in the markets. Finance to obtain financing.

Citizen ownership

For his part, Minister of State for Entrepreneurship and Small and Medium Enterprises, Dr. Ahmed Belhoul Al Falasi, affirmed that “abolishing the compulsory ownership of citizens in companies operating in the country is a real opportunity to encourage citizens to do business and invest in the local market, directly and 100% ownership of companies. Through partnerships as is currently happening, ”indicating that the amendments are expected to contribute to increasing the entry of a large number of citizens into the entrepreneurship sector.

Al Falasi stressed that the Emirati citizen possesses all the ingredients and competencies to develop, manage and operate the best successful commercial and investment projects, and establish competitive national companies, indicating that the government will support this trend in all possible ways and provide a stimulating environment for national small and medium enterprises, in order to continue their growth.

He stressed that small and medium-sized companies, owned and managed by 100% citizens, will have privacy and preference in many initiatives to support national entrepreneurship, especially the government procurement system.

He pointed out that these amendments would achieve the interest of the citizen investor and the foreign investor at the same time, and the amendments also serve the state’s efforts to enhance its ability to attract emerging and innovative companies and small and medium enterprises based on advanced technology, explaining that there is a greater opportunity for national entrepreneurs to enter into real partnerships. And directly with these companies, the benefits to the national economy and the contribution of innovation to the GDP.

The new law

For his part, Minister of State for Foreign Trade Thani bin Ahmed Al-Zeyoudi said, "The new law will replace the Foreign Direct Investment Law, and this is an advanced step in developing the country's economic legislation, in order to accelerate the procedures and stages of liberalizing economic sectors in front of foreign investment."

Al-Zeyoudi explained that according to the amendments, foreign companies can open branches or representative offices for them in the country, without requiring a citizen services agent for them, and this is an additional facilitation in the procedures for establishing those branches, and the ease of their ability to carry out their activities, noting that these amendments will contribute to giving companies freedom Akbar, to make an investment decision and reinvest in the country, which serves the business environment and investment climate

He added that, through amendments to the law, the UAE would take new and major steps in facilitating procedures for the foreign investor, enhancing his confidence in the state’s markets, encouraging him to develop sustainable plans to expand his investments in the country, and increasing the foreign capital’s appetite for investment in projects in the country.

Citizen agent

The Undersecretary of the Ministry of Economy, Abdullah Al Saleh, confirmed that with regard to the citizen agent in the companies, his future role will be "advisory", instead of a service agent, and the maximum limit that required companies to have 200 shareholders in private joint-stock companies was also removed.

He pointed out that the cases of commercial cover-up will completely disappear with the issuance of the new law, and there will be no excuses for practicing it, whether for citizens or foreigners.

He stressed that the amendments to the law apply only to companies, and do not apply to individual institutions, which will not be subject to the law, as individual institutions are subject to the laws of local governments.

He explained that for existing companies, contracts will be amended after the amendments come into effect between the parties of the company, so that the partners agree to establish a new joint company, according to the law, or to establish separate companies according to the agreement between them.

Initial Offerings

The Chief Executive Officer of the Securities and Commodities Authority, Dr. Obaid Saif Al-Zaabi, said that the new amendments will encourage initial public offerings and listings, increase the percentage of transactions and attract foreign capital.

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