DUBAI – The United Arab Emirates has announced plans to allow 100 per centownership and visa incentives to foreigners, in a bid to attract investorsto boost its slowing national economy.
The decision, taken by the UAE cabinet Sunday night, aims to lure“international investments and exceptional talent”, according to Dubairuler Sheikh Mohammed bin Rashed Al-Maktoum.
The new measures come amid signs of an economic slowdown in the oil-richGulf state on the back of lower oil prices, with reports showing the vitalreal estate and tourism sectors of Dubai struggling.
The decision will allow foreign investors 100 per cent ownership ofcompanies, coupled with 10-year residence permits for them and theirfamilies, according to a cabinet statement cited by WAM news agency.
The measures will come into force by the end of 2018, the statement said.
The UAE leads all Arab countries in terms of foreign direct investment,attracting $11 billion last year – a jump of 22 per cent on 2016 –according to the International Institute of Finance.
Although it is the most diversified and open economy in the Middle East,foreigners can only own up to 49 per cent of companies unless they areestablished in special free trade zones.
The new measures also grant 10-year long residence permits to professionalsin the medicine, science, research and technical fields.
Like other energy-rich Gulf Cooperation Council (GCC) states, foreignersworking in the UAE must have their residence permits made by a nationalsponsor known as kafeel.
The International Monetary Fund earlier projected that UAE economic growthwould fall from 3.0 per cent in 2016 to 1.3 per cent in 2017.
Capital Economics, a London-based think tank, however has said that the UAEeconomy grew by just 0.5 percent last year.
It said that the economy of Abu Dhabi, the largest of the seven emiratesmaking up the UAE and the richest in oil, shrank by 1.3 per cent and 1.1per cent in the third and fourth quarters of last year, respectively.
In Dubai, sales and rents in the real estate sector slowed down by five to10 per cent in 2017. The downturn is expected to continue through 2019,before picking up in 2020 when it will host the World Expo trade fair. -APP/AFP