New law to allow varied foreign ownership

The UAE government is drafting a federal law for investment in the emirates. Mohammad Saleh Shelwah, assistant undersecretary for economic policies affairs at the Ministry of Economy, told Gulf News that it would be up to the federal cabinet to set the percentage for foreign investors in projects in the UAE, the second largest Arab economy and foreign investment destination after Saudi Arabia. \"The UAE has completed the drafting of a long-awaited law that could allow foreign investors to have a varied percentage of ownership in some projects, depending on the type of investment and size of the project. [The law] is awaiting final approval before it is enforced this year,\" Shelwah said. He said that in spite of the impact of the financial crisis on the UAE economy, the country had remained an attractive destination for foreign direct investment (FDI). \"We now have serious talks with many investors from the Arab world, Europe and other areas seeking to invest in tourism, industry and other sectors in the UAE… these investors are looking for lucrative and safe markets for their investments and are trying to enter the UAE for this purpose.\" Shelwah added. He said the initiative aims to stimulate the investment environment and to attract funds and technology that would drive the knowledge economy, besides reducing oil dependence through diversification. \"The initiative is part of the UAE Vision 2021 to drive the development of a knowledge-based economy,\" said Shelwah.