“Activities Committee”: is excluded from the possibility of full ownership by foreign investors

Approval of the final list of economic activities with a strategic impact

The Committee on Economic Activities with Strategic Impact, during its third meeting, finally, headed by the Minister of Economy, Abdullah bin Touq Al-Marri, approved the final list of activities with a strategic impact, and submitted it to the Council of Ministers to consider its approval and official issuance.

A statement issued yesterday confirmed that the activities included in the list will be excluded from the possibility of full ownership by foreign investors, in accordance with the provisions of Federal Decree-Law No. 26 of 2020 regarding amendments to the Commercial Companies Law.

Two main categories

During the meeting, which was held through the virtual platforms, the committee reviewed the views of the bodies organizing the activities listed in the list, and accordingly, the list was divided into two main categories: “the category of activities subject to the approval and requirements of the activities with strategic impact committee”, and “the category of activities subject to the approval and requirements of the authorities. Her organization ».

Accordingly, standards, controls and percentages of foreign ownership will be determined in each category, unlike economic activities that are not classified under the "strategic impact" list, which is open to full foreign ownership without restrictions according to the amendments to the Companies Law.

Flexibility of the economy

The Minister of Economy, Abdullah bin Touq Al-Marri, said that the UAE, thanks to the directives of its leadership, is taking accelerated steps towards enhancing the openness and flexibility of its economy and its investment environment.

He stressed that the legislative reforms introduced to the Companies Law are a strong push towards achieving this goal, as foreign ownership has been made available in all activities and sectors in the country, with the exception of sectors of strategic impact that were identified and limited to the list approved by the committee, taking into account the national interests of the state. .

He added: “The committee has worked in accordance with the highest levels of integration and participation between the various concerned government agencies at the federal and local levels, to define activities with a strategic impact, and to arrive at a well-studied and limited list that takes into account the supreme national interests, and at the same time allows all other sectors to fully acquire the foreign investor, with the aim of Upgrading the investment climate in the country, in a way that supports the state’s plans and preparations for the next fifty years.

Ongoing evaluation

Al-Marri stressed that the committee will continue its work during the next stage, through continuous evaluation of the list, measuring its impact on the market periodically, and considering deleting or adding various activities to the list, in line with development strategies and national interests.

He said: “During the next stage, the committee will undertake the task of looking into applications for licensing companies that undertake any of the activities with a strategic impact, to issue its recommendation for approval or rejection, according to the standards and controls set by the committee and the regulating authorities in this regard, and the committee will also review and amend these controls whenever Need arose ».

Legislative framework

For his part, Minister of State for Foreign Trade, Dr. Thani bin Ahmed Al-Zeyoudi, said that completing the list of economic activities with a strategic impact is a fundamental step towards completing the legislative framework and legal and administrative procedures for the system of foreign investment in the country.

He added: “Once the list is officially issued, all sectors and economic activities in the country will be 100% open to foreign investors, except for the limited sectors and activities mentioned in the list. The process of licensing companies therein will be organized according to specific controls and standards that the committee will announce later.”

Al-Zeyoudi stressed that the amendment of the Companies Law and the adoption of the list of activities with a strategic impact would push towards increasing the incoming investment flows to the vital sectors in the country, achieving a qualitative leap in the investment climate during the next stage, and enhancing the attractiveness of the business environment and investments in the country regionally and globally, especially In value-added sectors.

He stressed that the Ministry of Economy will work with its partners to stimulate the attraction of quality foreign investments, which will contribute to diversifying the base of non-oil economic activities, and raising the competitiveness of the national economy to new levels.

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