Dubai economy expects 35% growth in foreign investments due to law reforms

The recent amendments will have a far-reaching impact on the flow and quality of foreign and domestic investments as well as overall economic growth of the country. (File/AFP)

DUBAI: Dubai’s economy is expecting a 35 percent growth in foreign investment due to recent reforms in the UAE’s Commercial Companies Law, according to the Director-General of Dubai Economy, Sami Al-Qamzi.
The recent amendments will have a far-reaching impact on the flow and quality of foreign and domestic investments as well as overall economic growth of the country, Al-Qamzi said. 
The reforms – which came into effect at the start of this month – allow foreign nationals 100 percent ownership of commercial companies within the country.
The changes will also contribute to increasing competitiveness and ease of business in the UAE in addition to bringing in more investments and creating more jobs, Al-Qamzi added. 
“Allowing foreign nationals 100 percent ownership of commercial companies will lead to a significant increase not only in foreign and domestic investments, as these amendments allow full freedom for investors to manage and operate their businesses,” he added. 
The director-general also hopes that the new legal framework will encourage individual investors and residents to invest, especially in the small and medium enterprises sector.
The changes aim to bring long-term investment in manufacturing, high-tech industries, digital economy, entertainment, engineering and legal consulting services, according to state news agency WAM. 
“Granting full ownership to foreigners and the subsequent influx of investments will enhance operational and administrative efficiencies not only in the private sector but also in the overall economy,” Al-Qamzi said.
Al-Qamzi added the UAE will benefit from increased competitiveness as a result of the amendments which will also improve the country’s position in the World Bank’s Doing Business report.