The UAE Cabinet Clears 100% Ownership Restriction in Mainland for Positive List of Sectors

Under the Foreign Direct Investment (FDI) Law, the UAE cabinet has released the full list of 122 categories for 100 percent ownership in the mainland. Cabinet Resolution No. (16) of 2020 mentioned the ‘Positive List’ of sectors and economic activities in which foreign direct investment is permissible and the percentage of ownership is 100 percent. This list covers key sectors – agriculture; manufacturing; transport and storage; hospitality and food services; information and communications; science and technology; healthcare; education; art and entertainment; and construction. It also includes numerous promising activities such as manufacturing of toys, sports goods, electrical equipment, consultancy services, advertising, photographic activities, construction of buildings, translation services, primary, secondary and higher education, hotel and restaurant management, hospitals, and music bands, etc.

Cabinet Resolution No. (16) of 2020 also sets a condition for companies to invest in the latest technologies, contribute to research and development, and meeting the requirements of the UAE licensing entities. This latest initiative by Cabinet, the manufacturing sector will benefit a lot. This measure is implemented to have a positive impact on the creation of jobs and reducing the import of goods by producing it locally. The minimum investment has been set at Dh2 million for manufacturing; Dh3 million for manufacturing of sports and toy industries; Dh20 million for manufacturing activities of automobiles, metal ad medical equipment; and Dh100 million for healthcare.

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