Foreign Investment Law in Dubai

A foreign investment law is created to establish rules to encourage foreign investment, allowing better and increased inflow of foreign capital. It protects the rights and property of foreign investors. Such law also enables import of intelligent and productive ideas in the form of business and infrastructure growth by foreign entities, and its contribution in national development.

Foreign Investment Law in the UAE is in its early stages and will be ready in year 2008, as stated by the UAE Ministry of Economy. As per the Ministry officials, the law will provide better investment opportunities for foreign investors in Dubai.

For this task, the federal government has recently set a committee to draft the investment law of the country. The committee consists of officials from ministries of economy, finance and industry and representatives from 35 business firms belonging to both private and public sectors. Drafting this law has proven to be a time consuming job as each emirate in the country has different standards for foreign investment. This is because related laws such as land ownership, company formation and many others are different in all emirates.

The U.A.E Minister of Economy, Sheikh Lubna Al Qasimi is very keen on attracting foreign investments to U.A.E and is working on helping create efficient investment laws for the nation. Speaking at the first National Investment Reform Workshop in the UAE held in last December, the minister told that the law would provide a “one stop” legal reference point for foreign investors. There will also be some measures in the law, which will help regulate the foreign direct investment to the country.