10.09.2018

UAE COMPANIES LAW UPDATE

New Zealand businesses looking to establish a foothold in the UAE have many options

Setting up a company in the UAE

New Zealand businesses looking to establish a foothold in the UAE have many options.

They can choose between setting up in the UAE mainland, or, in one of the many free zones in the UAE. 

Businesses will typically choose to incorporate a company “onshore” in the UAE mainland if they intend to operate in the local UAE market. 

By contrast, entities that set up in a free zone are can operate in that free zone, but not mainland UAE. 

Ownership of companies

Companies incorporated in the UAE mainland are required to have at least 51% local Emirati shareholding i.e. the maximum allowable foreign ownership is 49%.

Entities set up in a free zone can have 100% foreign ownership. 

This ability to retain 100% ownership makes setting up a free zone entity preferable for many businesses, even though this will impact on their ability trade in the local UAE market. 

Change in ownership of mainland companies

Earlier this year Sheikh Mohammed Bin Rashid Al Maktoum, the Prime Minister of the UAE and the Ruler of Dubai, announced on Twitter that the UAE would allow 100% foreign ownership of mainland companies. 

https://twitter.com/search?q=100%25%20foreign%20ownership&src=typd

It is expected that the scope of the change – at least initially – will be limited to certain sectors and industries.  However it is still a significant development and may signal further changes in the future. 

A new law implementing the change is anticipated shortly.

For practical legal advice specific to your business, contact Hesketh Henry’s specialist Transport and Trade team:

https://www.heskethhenry.co.nz/Our+Services/Transport+and+Trade.html.

Disclaimer: Hesketh Henry does not advise on UAE law.  We have strong relationships with a number of law firms in the UAE who can give detailed advice on setting up in the UAE.

Simon Cartwright
Partner

Simon is a trade and transport specialist.  He is qualified in New Zealand and England. 

Previously a partner with an international law firm and based in Dubai, he has extensive experience advising on trade issues, including sanctions.

Simon.Cartwright@heskethhenry.co.nz

Tel: +64 9 375 8727

Mobile: +64 22 301 9870

Do you need expert legal advice?
Contact the expert team at Hesketh Henry.
Kerry
Media contact - Kerry Browne
Please contact Kerry with any media enquiries and with any questions related to marketing or sponsorships on +64 9 375 8747 or via email.

Related Articles / Insights & Opinion

Privacy Commissioner to consult on Privacy Rules for Biometric Information
With the increasing use of facial recognition technology (FRT), retinal scans, and voice recognition by an array of different agencies, privacy concerns about its collection and use are set to be form...
24.11.2023 Posted in Business Advice
Fern forest NZ
Bioenergy in New Zealand: Fuels for the Future?
The energy transition from combustion fuels to low carbon alternatives is viewed as critical in the race to cut global CO2 emissions and reach climate targets.  We look at some of the opportunities p...
14.11.2023 Posted in Business Advice & Climate Change & Forestry
Will Wide BW
A well drafted will is a craft
The New Zealand do-it-yourself “DIY” attitude and way of life is not limited to home improvements, but sometimes also extends to wills.  Recently we had a DIY $5.99 fill in the blanks will acros...
07.11.2023 Posted in Private Wealth
rsz large pillars
Health and Safety: The Consequences of Dishonesty
Siddhartha Gautama said that lies are like huge, gaudy vessels, the rafters of which are rotten and worm-eaten, and that those who embark in them are fated to be shipwrecked.  Two remarkable health a...
03.11.2023 Posted in Employment & Health & Safety
Properly sequencing your Construction Adjudications: Henry Construction Projects Ltd v Alu-Fix (UK) Ltd
According to the UK’s Technology and Construction Court (TCC) (in Henry Construction Projects Ltd v Alu-Fix (UK) Ltd [2023] EWHC 2010) valid payment claims must be paid before the underlying merits ...
30.10.2023 Posted in Construction & Disputes
Key change to rules on distribution of surplus assets under the new Incorporated Societies Act 2022
On 5 October 2023, the new Incorporated Societies Act 2022 (2022 Act) came fully into force, replacing the Incorporated Societies Act 1908 (1908 Act). One of the key requirements under the 2022 Act is...
18.10.2023 Posted in Business Advice
Construction Framework Wide BW
Major milestone passed – NZS3910:2023 expected in time to fill Christmas stockings
As the most widely adopted standard form construction contract in NZ, NZS 3910 was more than ready for updated conditions given the changes in the industry since its last review in 2013.  After almos...
09.10.2023 Posted in Construction
SEND AN ENQUIRY
Send us an enquiry

For expert legal advice, please complete the form below or call us on (09) 375 8700.