Ras Al Khaimah Economic Zone (RAKEZ) will allow 100% foreign ownership for companies based on the mainland in order to attract more foreign direct investment (FDI) into the Emirate.
RAKEZ (home to over 15,000 companies) announced the new company formation regime which is intended to strengthen key strategic sectors of the economy as a whole.
RAK’s Department of Economic Development (RAK DED) will receive and approve applications, ensuring that they fall under the “positive list” of eligible sectors issued by the UAE Cabinet under FDI Law. RAK DED will then reserve the trade name and issue the licence, after which, RAKEZ will issue its own licence and documentation to the investor.
Companies setting-up under this new regime will be considered national companies, and will have “full confidentiality of technical, economic and investment information”. FDI companies will also be eligible to make financial transfers outside the country for project returns, and will have their assets protected from being claimed by the state for public use or benefit through a guaranteed no expropriation.
“The easing up of foreign ownership procedures in the mainland is definitely a game changer in the UAE and Ras Al Khaimah’s investment landscape, offering enhanced ease and freedom for investors when setting up their businesses. As always, we are here to embrace great developments as such, hence, we are happy to introduce FDI company set-up to the range of solutions that we offer,” said Ramy Jallad, Group CEO of RAKEZ. “The FDI formation structure is going to further increase Ras Al Khaimah’s appeal as a regional investment hub and we are excited to welcome new ventures across different sectors.”
Dr Abdulrahman Alshayeb Alnaqbi, RAK DED Director General, said: “The UAE continues to be a progressive country and the introduction of 100 per cent foreign company ownership in the mainland is a significant move that strengthens its commitment to providing a supportive platform to international investors. We are glad to work closely with RAKEZ in helping businesses take advantage of this opportunity, which will make Ras Al Khaimah’s investment landscape more welcoming and dynamic.”
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