Sweeping legal reforms aim to maintain UAE’s competitive edge

The United Arab Emirates [UAE] permitted a sweeping authorized reform on Nov. 27, aiming to spice up its financial system, maximize the industrial alternatives and improve social stability.

The brand new modifications embrace 40 legal guidelines starting from commerce, on-line safety, copyright, residency, narcotics and different social points.

As reported by state information company WAM, the amendments in industrial regulation intention to extend overseas direct funding and reaffirm the UAE’s standing as a number one enterprise hub regionally and globally.

To maintain its aggressive edge, the UAE authorities has intensified its efforts because the starting of the 12 months, permitting foreigners to personal 100% of the shares in UAE corporations in all sectors besides the strategic ones. Beforehand, foreigners may personal a most of 49% of an organization.

The Gulf state additionally moved to make investing simpler and extra engaging for gifted individuals by new sorts of visas and straightforward procedures to register companies which makes it sixteenth globally within the World Financial institution’s 2020 Ease of Doing Enterprise rankings. As well as, it introduced huge spending to spice up the non-public sector, as reported earlier by Al-Monitor.

These measures come because the UAE is going through rising regional competitors from its shut neighbor Saudi Arabia, which began its personal plan to diversify its financial system and appeal to overseas buyers and skills.

Abdulkhaleq Abdulla, retired professor of political science at Emirates College, instructed Al-Monitor that the work on these amendments began way back, and is being completed progressively, to arrange the UAE for the long run. He stated that many international locations within the area are working to enhance their economies, together with Saudi Arabia, Qatar and Egypt.

On Feb. 15, Saudi Arabia instructed worldwide corporations to relocate their Center East headquarters to its capital Riyadh or else lose authorities contracts ranging from 2024. This transfer was described by Bloomberg as a direct problem to neighboring UAE, the place most of those corporations have regional places of work.

Wadah Al Taha, advisory board member of the UAE Chartered Institute for Securities and Investments, stated that the Emirates is working repeatedly to stay a gorgeous enterprise hub within the area, because it ranks first within the Arab world within the dimension of overseas funding.

With a view to preserve this place, three elements have to be current: the infrastructure, the legislative system and funding legal guidelines. All these are effectively accessible now, Al Taha instructed Al-Monitor.

The current modifications within the authorized system, he added, will add extra flexibility to a variety of financial sectors and industries. He expects that the brand new modifications in industrial regulation will improve direct overseas funding, localize initiatives and help small and medium-sized enterprises.  

Along with the financial system, the modifications additionally touched on social points and private rights, in keeping with Abdulla, who famous that these modifications are wanted to the “Emirates of the twenty first century.”           

Beforehand, it had been unlawful for an single couple to stay collectively, and even flatmates to share an house — though authorities not often prosecute anybody.

The brand new authorized reform additionally decriminalizes sexual relations out of marriage and alcohol consumption for UAE nationals and foreigners. Ona Bustani, an Indonesian chief accountant, who’s working for an offshore firm in Abu Dhabi, instructed Al-Monitor that these social points commonly got here up in conversations along with her colleagues, particularly newcomers.

Bustani, who moved to UAE two years in the past after working in Singapore for 3 years, stated that the brand new legal guidelines might put new residents relaxed about shifting to the nation.

The brand new social amendments, Abdulla stated, imply that the UAE is updating its authorized system to align with worldwide requirements and to reassure overseas communities of their significance and contribution to the state.