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FINANCIAL NEWS
UAE cabinet approves draft companies law
05 Dec 2011
(MENAFN) UAE government Okayed a draft companies law that allows foreign ownership of controlling stake, as part of the Gulf state’s efforts to attract more foreign investments to diversify its economy, WAM reported.
The law allows foreign ownership above 49 percent of the company’s capital in businesses and sectors specified by the government, the state’s news agency said.
The new law puts a framework for the governance of public companies, ensuring transparency and disclosure of financial data as well as the efficiency and integrity of the board of directors.
The existing law allows a maximum 49 percent ownership limit for listed companies, and foreigners need a UAE national or partner to conduct business, although full foreign ownership is permitted in free zones.
UAE is seeking to diversify its economy, developing sectors including tourism, finance and aerospace, away from oil exports.
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