FDI Committee reviews sectors for full investment

Abu Dhabi: The Foreign Direct Investment Committee (FDI Committee) has held its second meeting in Dubai to review the proposed list of sectors eligible for full foreign direct investment.

Chaired by Sultan Bin Saeed Al Mansouri, Minister of Economy, the meeting discussed necessary controls and requirements in accordance with the provisions of the FDI Law.

Al Mansouri said that the UAE is pressing ahead with its vision to develop a conducive investment environment and enhance incentives and advantages offered to foreign investors, which contributed to enhancing the country’s regional and international investment status and attractiveness.

He added that the FDI committee represents a national platform to discuss and identify vital economic sectors eligible for full foreign investment, in line with the UAE’s economic visions and development strategies.

“Our endeavours in this regard builds on the national efforts aiming to develop a future economy based on knowledge, innovation, technology, research and development”.

The committee’s second meeting has discussed and identified some sectors and activities eligible for FDI, in preparation for submission to the Cabinet for approval, Al Mansouri added.

During the meeting, the committee reviewed a number of privileges and incentives offered to licensed FDI companies, namely:

• Treating licensed foreign investment companies the same as national companies and allowing the transfer of all net annual profits;
• Allowing the transfer of all net annual profits and the transfer of all funds resulting from liquidation or sale, or disputes related to the FDI project out of country without restrictions;
• Allowing the transfer of employees’ salaries, compensations and gratuities outside the country without restrictions; and
• Ensuring the confidentiality of information and investment initiatives that are submitted to relevant authorities.

The advantages also included the possibility of introducing new partners to the company, transfer ownership to a new investor and amend the contract of incorporation and the statute or change the legal form and the merger or acquisition without being affected by the privileges granted to them.