Law Statutes

Back

Cabinet Resolution No. 16 of 2020

24-11-2020

Concerning the Determination of the Positive List of Economic Sectors and Activities Eligible for Foreign Direct Investment and Percentage of their Ownership

The Cabinet:
- After cognizance of the Constitution; and
- The Federal Law No. (1) of 1972 concerning the Mandates of Ministries and Powers of Ministers and its amendments; and
- The Federal Law No. (2) of 2015 on Commercial Companies, and its amendments; and
- The Federal Decree-Law No. (19) of 2018 on Foreign Direct Investment; and
- Upon the proposal of the Minister of Economy and the approval of the Cabinet,

Has resolved:

Article (1)
Definitions

In this Resolution, the following words and expressions shall have the meanings ascribed to them, unless the context otherwise requires:
State or UAE : the United Arab Emirates.
Foreign Investor : means a natural or moral person who has not the UAE nationality and invests in the State in accordance with the Federal Law No. (19) of 2018 on Foreign Direct Investment.

Article (2)
Positive List

The positive list of economic sectors and activities attached hereto and in which the foreign investor is permitted to invest is hereby approved.

Article (3)
Legal Form

The Foreign Direct Investment Project in the economic activities referred in article (2) hereof shall take any of the following legal forms:
a. A limited liability companies, including one person (single owner) companies.
b. Private joint stock companies, including one person (single owner) companies.

Article (4)
Percentage of Ownership by the Foreign Investor
The foreign investor shall own 100% of Foreign Direct Investment Project in the economic activities referred to in article (2) hereof, except as provided for in Federal Law No. (2) of 2015 on Commercial Companies.

Article (5)
Minimum Share Capital

The minimum share capital of the Foreign Direct Investment Project in the economic activities referred to in article (2) hereof shall be as set forth in the list attached hereto.


Article (6)
Restrictions and Conditions of Foreign Direct Investment

Restrictions and conditions of foreign direct investment in the economic activities referred to in article (2) hereof shall be as ascribed to each activity in the attached list in addition to any other restrictions and conditions set by the licensing authority and any restrictions and conditions set by the legislation in force.

Read More