The Minister of Economy, Engineer Sultan bin Saeed Al Mansoori, said that the distinguished cabinet approval of the implementation of the first positive list of economic activities available for foreign ownership by 100% in accordance with the law on foreign direct investment represents a qualitative shift to move the investment climate in the country to a new level of momentum and competitiveness, and support The UAE's strategy to enhance its position as a global destination attracting qualitative investment.
He explained that liberalizing 122 major and subsidiary economic activities in the agriculture, industry and services sectors in front of foreign investors by 100% will add value to the economic diversification policy pursued by the state and would attract successful international companies and raise the contribution of non-oil sectors to GDP at advanced rates, which is complementary With the country's economic vision to build a diversified global competitive economy based on knowledge and innovation.
The Minister of Economy added that the selection of the first positive list came in accordance with the best regional and global practices in the application of investment liberalization policies, and took into account the achievement of the national interest and strategic visions and related indicators, stressing that his positive list will be subject to continuous evaluation in accordance with the restrictive progressive approach adopted by the Ministry The economy and its partners in the Foreign Direct Investment Committee that emanate from the law, which allows the government and business regulators to study the results of openness and measure the impact and added value on economic performance, including It does not guarantee the achievement of national targets.
He continued: "A number of controls were taken into account when determining the activities of the positive list and the minimum capital therein, the most prominent of which are: the limited impact on citizens and national companies that perform a similar activity, and stimulating activities that are related to research and development fields and attract modern technology and global expertise and integrate with the strategic plans of the state, And excluding activities that could have a direct or indirect negative impact on the national public interest and on citizens and society. "
He pointed to a set of paths through which the opening of foreign investments in the activities included in the list contributes to advancing sustainable economic development in the country, the most prominent of which are:
Increase the flow and attract foreign direct investment to priority sectors
• Expanding and diversifying the production base, transferring technology, knowledge and training
• Increasing job opportunities, raising Emiratization rates in the private sector, and achieving the best return for the available resources
• Strengthening the partnership between citizens and foreign investors through the complementarity of the production of goods and services and strengthening the value chain
Supporting the country's strategies in the areas of innovation, sustainability, industry, education, health, food security and artificial intelligence
Law advantages and guarantees
In the same context, the Ministry of Economy confirmed that the provisions of the Foreign Direct Investment Law apply to all foreign direct investment projects and are licensed in the state, while they do not apply to projects that are established in the financial and non-financial free zones in the state, and that the law provides a set of incentives, benefits and guarantees for activities Which is licensed as a foreign direct investment company, the most important of which are:
100% ownership
• Dealing with licensed foreign direct investment companies like national companies
• Conducting financial transfers outside the country
• Ensure that project funds are not seized or confiscated without a court ruling
Ensure that property is expropriated only for public benefit in exchange for fair compensation
Guaranteeing the right to use real estate
Ensuring the confidentiality of technical, economic and financial information and investment initiatives
• Additional privileges such as: entering one or more partners, transferring ownership, amending the articles of association or articles of association, changing the legal form of the company, merger, acquisition or liquidation.
Steps to license a foreign investment company that is included in the positive list
In addition, the Ministry announced the procedures and steps that a foreign investor must follow to authorize a foreign direct investment company for an activity included in the positive list, where the investor submits a request for approval of a legitimate license to the authority responsible for foreign direct investment in the local government, fulfilling the conditions and documents, and licensing takes place within 5 Maximum working days only to obtain approval, according to nine steps as follows:
1. Determine the nature of the activity in the positive list and the legal form (with limited liability, private contribution, including one-person companies)
2. Determine the capital so that it is not less than the minimum set in the positive list
3. Submit a foreign direct investment license application after obtaining the initial approval
4. Reservation of the trade name so that it is followed by the legal form of the company and then with the phrase "foreign direct investment" or what it indicates
5. Obtaining the approvals of the authorities organizing the activity
6. Proof of submitting an application to join the Emiratisation Club
7. Obtaining approval and receiving the license after paying the fees
8. Opening a bank account in the name of the company (under incorporation) and depositing at least 20% of the capital
9. Registration of the license with the Ministry of Economy
Steps to convert an existing company into a foreign investment company
The Ministry also clarified the steps for converting existing companies into foreign direct investment companies, provided that the legal form of the existing company is in accordance with the specific forms of foreign direct investment companies, and that conditions and obligations are reconciled in accordance with the conditions and requirements specified in the Foreign Direct Investment Law and the positive list, and the conversion procedures include the five steps next:
1. Obtaining the approvals of the organization organizing the activity
2. Proof of submitting an application to join the Emiratisation Club
3. Obtain approval and receive the license after paying the fees
4. Deposit at least 20% of the capital
5. Registration of the license with the Ministry of Economy
Project license not included in the positive list
The Ministry indicated that the licensing of foreign direct investment projects is not necessarily confined to the positive list, in order to provide an opportunity to establish and attract projects that have a high added value to the economy even if they are not included in the positive list, provided that the bodies identified by the Foreign Direct Investment Law agree, in accordance with the steps and criteria next:
• Submit the application to the authority responsible for foreign direct investment (which has the right to disapprove or submit the request to the foreign direct investment committee for consideration in coordination with the licensing authority and the local government)
• In the event that the request is presented to the Investment Committee, its recommendation will be submitted to the Council of Ministers. In the event of a approval decision, the investor shall be notified through the competent authority to complete whatever data and documents it deems necessary.
• Issuing approval of the license within 5 working days from the date of completing all the documents and procedures
• The decision of the competent authority to reject a project not included in the positive list is considered a final decision and is not subject to appeal or appeal
Positive list sectors and activities
The first positive list included 122 main and subsidiary economic activities, 19 of which are in the agricultural sector, 51 in the industrial sector, and 52 in the services sector, which have been classified and approved according to the economic activities manual approved by the Ministry of Economy.
In the agricultural sector, the list set the minimum capital as follows:
• AED 7.5 million in 18 activities, most notably the cultivation of grains, leguminous crops, vegetables, fiber crops, flowers and fruits Support activities for animal production, seed processing and forestry
• AED 10 million in one activity: support activities for crop production.
In the industrial sector, the minimum required capital has been determined according to the following categories:
• 100 million UAE dirhams in 8 activities, most notably the manufacture of machinery, vehicles, merchant ships, drilling rigs, hovercraft, air and space vehicles and related machinery
• 20 million UAE dirhams in 5 activities highlighted by the manufacture of metals, electrical equipment, transportation equipment and medical tools
• 15 million UAE dirhams in 34 activities in various industries such as food, beverages, clothing, leather goods, wood products, plastics, chemicals, engines, computers, metal products, and medicines
• 3 million UAE dirhams in 3 activities, including making sports and games kits
• Two million dirhams in one activity, which is making musical instruments
In the services sector, the minimum capital required was determined according to the following categories:
• 100 million dirhams in two activities, namely retail trade in non-specialized stores and hospital activities
• AED 70 million in one activity that includes other health care related activities
As for the remaining 49 activities in the services sector on the positive list, its minimum capital is determined according to the legislation in force.