Cabinet Resolution Regarding Determining the Approved List of Sectors and Economic Activities in which Direct Foreign Investment is Permitted and their Percentage of Ownership
The Cabinet:
- Upon reviewing the Constitution;
- Federal Law No. (1) of 1972 Concerning the Competences of the Ministries, the Powers of the Ministers, and any amendments thereof;
- Federal Law No. (2) of 2015 concerning Commercial Companies and its amendments;
- Federal Law by Decree No. (19) of 2018 Concerning Direct Foreign Investment; and
- Upon the proposal of the Minister of Economy, and the approval of the Cabinet;
Has resolved:
Article (1) — Definitions
In application of the provisions of this Resolution, the following words and phrases shall have the meanings assigned thereto, unless the context indicates otherwise:
State: United Arab Emirates (UAE)
Foreign Investor: A natural or legal person who is not a UAE national and is investing in the State in accordance with the provisions of Federal Decree Law No. (19) of 2018 concerning direct foreign investment.
Article (2) — Positive List
The positive list of sectors and economic activities attached to this Resolution shall be approved, in which, the foreign investor may directly invest.
Article (3) — Legal Form
The direct foreign investment project in the economic activities referred to in Article (2) of this Resolution shall take one of the following legal forms:
a. Limited Liability Company, including one-person companies. b. Shareholding Company, including one-person companies.
Article (4) — Foreign Investor Ownership
The percentage of foreign investor ownership of the direct foreign investment project in the economic activities referred to in Article (2) of this Resolution shall be 100% except for the mentioned in Federal Law No. (2) of 2015 concerning Commercial Companies.
Article (5) — Minimum Capital
The minimum capital for a direct foreign investment project in the economic activities referred to in Article (2) of this Resolution, according to the list attached to this Resolution.
Article (6) — Conditions and Controls for Direct Foreign Investment
The conditions and controls for direct foreign investment in the economic activities referred to in Article (2) of this Resolution, according to what is ascribed to each activity in the list attached to this Resolution in addition to any conditions and controls determined by the licensing authority and any conditions and controls contained in the legislation in effect in this regard.
Article (7) — The Minimum Number of UAE Nationals
The minimum number of UAE nationals working in the direct foreign investment project in the economic activities referred to in this Resolution shall be in accordance with the Law in effect in this regard with the Ministry of Human Resources and Emiratization.
Article (8) — Available Benefits for the Direct Foreign Investment Project
- The available benefits for the direct foreign investment project in the economic activities referred to in Article (2) of this Resolution shall be in accordance with the merits stipulated in Law by Decree No. (19) of 2018 concerning direct foreign investment.
- The Competent Local Authority may grant any additional benefits to the direct foreign investment project.
Article (9) — Exceptions
The direct foreign investment project in the economic activities referred to in Article (2) shall be exempt from this Resolution, provisions of Articles (71, (151), and (209) of Federal Law No. (2) of 2015 concerning Commercial Companies.
Article (10) — Repeals
Any provision contrary to or inconsistent with the provisions of this Resolution shall be repealed.
Article (11) — Publication and Enforcement of the Resolution
This Resolution shall be published in the Official Gazette; and shall enter into force as of the day following the date of its publication.
Mohammed Bin Rashid Al Maktoum Prime Minister
Issued by us: On: Rajab 22, 1441 Η Corresponding to: March 17, 2020