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UAE’s New Proposed Investment Law for Better Protection of Foreign Investments

Middle East : 10 March 2010

Factors such as free zones, abundance of skilled and unskilled labour, advanced infrastructure, and a commitment to anti-piracy and international IP rights were quoted as evidence that the state was an attractive location for foreign investment, according to the UAE’s Minister of Economy, Sultan Bin Saeed Al Mansouri.

To consolidate this view, the government is drafting a law which is expected to come into force by the end of the current year.

The law on foreign investment is aimed to improve the investment climate and to protect foreign investors as well as to offer them incentives. According to Al Mansouri, the companies and industrial laws will be announced very soon as well.

UAE’s proximity to world’s largest population centers – China and India is another important factor contributing to the attractiveness of the UAE in terms of foreign investment. The existing law which doesn’t allow more than 49% of ownership by foreigners in any business except for in free zones is a limiting factor for a lot of foreign investors when considering the UAE as a potential investment opportunity.

Al Mansouri said that the economy grew by 1.3% last year and is expected to grow by 3.2% in 2010. Due to prudent economic decisions by the UAE government, the country’s economy defied all odds of global financial crisis.

Paul Holdsworth, Staff Writer, Gulf Jobs Market News
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