Cabinet Resolution No. (16) of 2020 Regarding Determining the Approved List of Sectors and Economic Activities in which Direct Foreign Investment is Permitted and their Percentage of Ownership

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Cabinet Resolution Regarding Determining the Approved List of Sectors and Economic Activities in which Direct Foreign Investment is Permitted and their Percentage of Ownership
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 last update on this law was listed on 17 Mar 2020

Issued Date

17 Mar 2020

Effective Date

01 Apr 2020

Official Gazette Date

31 Mar 2020

Official Gazette No

675

Legislation State

Active

Regulation Table

1

Disclaimer: Every effort has been made to produce an accurate and complete English version of this website/ legislation. However, for the purpose of their interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text will prevail

Index
Index
Article (1) Definitions
Article (2) Approved List
Article (3) Legal Form
Article (4) Foreign Investor Ownership
Article (5) Minimum Capital
Article (6) Conditions and Controls for Direct Foreign Investment
Article (7) The Minimum Number of UAE Nationals
Article (8) Available Benefits for the Direct Foreign Investment Project
Article (9) Exceptions
Article (10) Repeals
Article (11) Publication and Enforcement of the Resolution
Cabinet Resolution No. (16) of 2020 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) Approved List

The Approved 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

1. 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.
2. 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.

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