Based on the provisions of Federal Decree-Law No. 26 of 2020 amending the provisions of Federal Law No. 2 of 2015 on Commercial Companies, Federal Decree-Law No. 19 of 2018 on foreign direct investment FDI has been cancelled based on the provisions of Clause 2 of Article 6. Based on this, any decision issued pursuant to Federal Decree Law No. 19 of 2018 on FDI is now null and void, i.e., Resolution No. 16 of 2020 on the Determination of the Positive List of Economic Sectors and Activities Eligible for FDI and percentage of their ownership is considered null and void.

The FDI Law was replaced by a number of amendments to the Commercial Companies Law, the most prominent of which are:

1- Amended provisions of Article 10 in Federal Decree Law No. 26 of 2020 not to specify the percentage of national contribution and limiting it to a list of sectors with strategic impact through a committee by virtue of a UAE Cabinet decision. The committee includes representatives of the competent authorities, in addition to being from the competent local authority has the power to determine a specific percentage for UAE citizens’ contributions to the capital or boards of directors of all companies established within its jurisdiction.

2- Cancellation of the provision that mandated the appointment of an Emirati sponsor for the branches of foreign companies in the country.

Issued on 20 September 2021, the Federal Decree-Law No. 32 of 2021 on commercial companies, introduced several amendments to the Commercial Companies Law.

The Cabinet Resolution No. 65 of 2022, which issued the executive regulations of Federal Decree Law No. 29 of 2021 on the entry and residence of foreigners, has enabled some groups of skilled professionals who excel in higher professional levels to get the 10-year golden residency. These groups are based on the professional classification approved by the Ministry of Human Resources & Emiratisation. These include:

A. Presidents and CEOs at the highest position level.

B. Specialists at the second highest level in various categories, as stated in the above-mentioned resolution.

To learn more, please visit the official website of the Federal Authority for Identity, Citizenship, Customs & Port Security.

Based on the provisions of Federal Decree-Law No. 26 of 2020 amending the provisions of Federal Law No. 2 of 2015 on Commercial Companies, Federal Decree-Law No. 19 of 2018 regarding foreign direct investment FDI has been cancelled based on the provisions of Clause Two of Article Six. Based on this, any decision issued pursuant to Federal Decree-Law No. 19 of 2018 regarding FDI is now null and void, i.e., Resolution No. 16 of 2020 Concerning the Determination of the Positive List of Economic Sectors and Activities Eligible for Foreign Direct Investment and Percentage of their Ownership is now considered null and void.

The FDI Law was replaced by a number of amendments to the Commercial Companies Law, the most prominent of which are:

1-Amended provisions of Article 10 in Federal Decree-Law No. 26 of 2020 not to specify the percentage of national contribution and limiting it to issuing a list of sectors with strategic impact through a committee by UAE Cabinet decision. The committee includes representatives of the competent authorities, in addition to being from the competent local authority has the power to determine a specific percentage for Emirati citizens’ contributions to the capital or boards of directors of all companies established within its jurisdiction.

As far as the telecommunications sector is concerned, it is one of the sectors with strategic impact identified by Cabinet Decision No. 55 of 2021 on activities with strategic impact, which allows foreign investors to own in sectors with strategic impact after the approval of the relevant authorities that regulate these sectors.

To learn more about the benefits offered by the UAE to foreign investors, please visit the "Grow in UAE" page on the official website of the Ministry of Economy.

In light of the Federal Law Decree No. 26 of 2020 amending Certain Provisions of Federal Law No. 2 of 2015 on Commercial Companies, the Federal Law Decree Law No. 19 of 2018 on FDI was abolished, pursuant to Article 6, clause No. 2. Accordingly, any decision issued under the Federal Law Decree Law No.19 of 2018 on FDI shall be deemed null and void. The Federal Law Decree Law No. 16 of 2020 on ‘Positive List of Economic Sectors and Activities in which Foreign Direct Investment is Permitted’ with the ownership shall accordingly be deemed null and void.
A number of amendments on the commercial companies replaced the Law of Direct Foreign Investment, as follows:

1- Amending provisions of Article 10 of the Federal Law Decree no. 26 of 2020 providing not to specify the share of national contribution and to be limited only to the issuance of a list of strategic sectors through a panel to be formed by the Cabinet. The Panel shall be composed of two members representing the competent authorities, where the national competent authority will have the authority to specify a certain share of contribution by nationals or all companies’ Board of Directors established within the scope of its jurisdiction. 
2- Abolishing the Article stipulating that a local service agent from the UAE is required.
On 20 September 2021, a Federal Law Decree no. 32 of 2021 on Commercial Companies was issued. It includes all amendments made to the Commercial Companies Law.

In light of the Federal Law Decree No. 26 of 2020 amending Certain Provisions of Federal Law No. 2 of 2015 on Commercial Companies, the Federal Law Decree Law No. 19 of 2018 on Direct Foreign Investment was abolished, pursuant to Article 6, clause No. 2. Accordingly, any decision issued under the Federal Law Decree Law No. 19 of 2018 on FDI shall be deemed null and void. The Federal Law Decree Law No. 16 of 2020 on ‘Positive List of Economic Sectors and Activities in which Foreign Direct Investment is Permitted’ with the ownership shall accordingly be deemed null and void.
A number of amendments on the commercial companies replaced the FDI law, as in following:
1- Amending provisions of Article 10 of the Federal Law Decree no. 26 of 2020 not to specify the share of national contribution and to be limited only to issuing a list of strategic sectors through a panel to be formed by the Cabinet. The Panel shall be composed of two members representing the competent authorities, where the national competent authority will have the authority to specify a certain share of contribution by nationals or all companies’ Board of Directors established within the scope of its jurisdiction.
2- Abolishing the Article that stipulates that a local service agent from the UAE is required.
On 20 September 2021, a Federal Law Decree no. 32 of 2021 on Commercial Companies was issued. It includes all amendments made to the Commercial Companies law.

In light of the Federal Law Decree No. 26 of 2020 amending Certain Provisions of Federal Law No. 2 of 2015 on Commercial Companies, the Federal Law Decree Law No. 19 of 2018 on FDI was abolished, pursuant to Article 6, clause No. 2. Accordingly, any decision issued under the Federal Law Decree Law No. 19 of 2018 on FDI shall be deemed abolished. The Federal Law Decree Law No. 16 of 2020 on ‘Positive List of Economic Sectors and Activities in which FDI is Permitted’ with the ownership shall accordingly be deemed abolished.
A number of amendments on the commercial companies replaced the FDI Law, as follows:
1- Amending provisions of Article 10 of the Federal Law Decree no. 26 of 2020 in a provision not to specify the share of national contribution and to be limited only to issuing a list of strategic sectors through a panel to be formed by the Cabinet. The Panel shall be composed of two members representing the competent authorities, where the national competent authority will have the jurisdiction to specify a certain share of contribution by nationals or all companies’ Board of Directors established within the scope of its jurisdiction.
2- Abolishing the Article providing that a local service agent from the UAE is required.
On 20 September 2021, a Federal Law Decree no. 32 of 2021 on Commercial Companies was issued. It includes all amendments made to the Commercial Companies law.

Following the issuance of Federal Decree-Law No. 26 of 2020, which amends certain provisions of Federal Law No. 2 of 2015 regarding Commercial Companies, the Federal Decree-Law No. 19 of 2018 concerning FDI has been revoked. This resolution is based on the provisions of the second clause of Article 6. As a result, any resolution made under Federal Decree-Law No. 19 of 2018 regarding Foreign Direct Investment is no longer valid. This includes Cabinet Decision No. 16 of 2020, which specified the positive list of sectors and economic activities eligible for foreign direct investment and their ownership percentages.

It is important to note that the Foreign Direct Investment Law has been replaced by making a number of amendments to the Commercial Companies Law, the most prominent of which are:

1-      Amendments to the provisions of Article 10 of Federal Decree-Law No. 26 of 2020 by not specifying the percentage of national contribution and restricting it to the issuance of a list of sectors with strategic impact by a committee by a decision of the Cabinet, including representatives of the competent authorities. In addition, it is within the competence of the competent authority local to determine a specific percentage for the contribution of UAE citizens in the capital or boards of directors of all companies established within its jurisdiction.

2-       Cancellation of the article that mandates the appointment of a local agent for the branches of foreign companies in the UAE. On September 20, 2021, Federal Decree-Law No. 32 of 2021 on Commercial Companies was issued, which include all amendments made to the Commercial Companies Law.

To learn more about the law, please visit the “Grow in UAE” Legislative Environment page on the Ministry of Economy's website.

Ten days in high-income countries, or four days in the UAE via the economic departments, or just 15 minutes online through the Basher platform.

Companies and investors from different nationalities are permitted to have full ownership in all economic activities as specified by the relevant local authorities, and as outlined in the list of activities with strategic impact.

Investors, entrepreneurs, talented individuals, scientists, experts, top graduates, humanitarian workers, and frontline personnel can apply for a golden residency permit based on specific criteria for each category. For further details, you can visit the official website of the Federal Authority for Identity and Citizenship, Customs, and Port Security:

  https://beta.smartservices.icp.gov.ae/goldenservices/web/landing

You can find out more about the eligible categories for obtaining the golden residency permit by visiting the website of the Federal Authority for Identity and Citizenship, and Ports Security.