Ras Al Khaimah allows 100% foreign ownership in mainland

EASE OF DOING BUSINESS: RAK will also allow investors to add partners and transfer ownership to new investors.

The emirate of Ras Al Khaimah has allowed 100 per cent foreign ownership to companies in mainland in order to attract more foreign direct investment (FDI) in to the emirate.
The RAK Economic Zone (RAKEZ), the free zone home to 15,000 companies, announced the new company formation structure under the emirate's programme to woo more foreign investment key strategic sectors such as industrial, agricultural and services.
RAK's Department of Economic Development (RAK DED) will receive and approve applications, ensuring that they fall under the "positive list" of eligible sectors issued by the UAE Cabinet under FDI Law, where 100 per cent foreign company ownership is permitted. RAK DED will then reserve the trade name and issue the FDI licence, according to the mechanism set by the UAE Cabinet. After which, RAKEZ will issue its licence and documentation to the investor.
Companies set up under this FDI structure will be considered national and will have full confidentiality of technical, economic and investment information. FDI companies will also be eligible to make financial transfers outside the country for project returns, and will have their assets protected from being claimed by the state for public use or benefit through a guaranteed no expropriation.
The emirate will also allow investors to add partners and transfer ownership to new investors. In 2019, the UAE Cabinet had approved a "positive list" of activities under which 100 per cent foreign ownership in companies outside free zones was permitted. In April 2020, the UAE released the full list of 122 categories for 100 per cent ownership in the mainland under the FDI law.
The list covered key sectors agriculture; manufacturing; transport and storage; hospitality and food services; information and communications; science and technology; healthcare; education; art and entertainment; and construction.
"The UAE continues to be a progressive country and the introduction of 100 per cent foreign company ownership in the mainland is a significant move that strengthens its commitment to providing a supportive platform to international investors. We are glad to work closely with RAKEZ in helping businesses take advantage of this opportunity, which will make Ras Al Khaimah's investment landscape more welcoming and dynamic," said Dr Abdulrahman Alshayeb Alnaqbi, director-general of RAK DED.
"The easing up of foreign ownership procedures in the mainland is definitely a game changer in the UAE and Ras Al Khaimah's investment landscape, offering enhanced ease and freedom for investors when setting up their businesses. As always, we are here to embrace great developments as such, hence, we are happy to introduce FDI company set-up to the range of solutions that we offer," said Ramy Jallad, Group CEO of RAKEZ.
"The FDI formation structure is going to further increase Ras Al Khaimah's appeal as a regional investment hub and we are excited to welcome new ventures across different sectors," he added. - waheedabbas@khaleejtimes.com