- May 23, 2021
- Posted by: Aswani
- Category: News
One of the most anticipated law amendments in the UAE, offering 100% foreign ownership on uae mainland for foreign investors, will come into effect from June 1st, 2021. Ever since the news was announced last year, business investors and entrepreneurs were excitingly awaiting for further updates on it. Now, the UAE government has come up with the complete list of positive sectors that will come under this law. 122 categories will be granted 100% foreign ownership on uae mainland, provided certain conditions are met.
The positive list includes sectors such as agriculture; manufacturing; transport and storage; hospitality and food services; information and communications; science and technology; healthcare; education; art and entertainment; and construction.
Even though UAE mainland is one of the most preferred business jurisdictions for many investors, the lack of complete ownership is something that holds them back from investing here. They can start a business on UAE mainland only with the help of local sponsor and the major share of the company will be held by the sponsor. The new amendment is a welcoming initiative in the business landscape of UAE and it will surely reap many positive benefits. Many investors will flock into the country to establish a business on UAE mainland, which will boost the economy of the country.
We have explained in details about the activities included and the conditions that must be fulfilled, in the table below;
Agriculture sector
| ISIC4 | Business activity | Minimum Capital | Conditions and controls for foreign direct investment | |
| 1 | 01111 | Grain cultivation (wheat, corn, barley, etc.) | – use of modern technology – achievement of high added value – contribution in the research and development field – satisfaction of the requirements of the licensing entities in the state | |
| 2 | 01112 | Cultivation of bean crops | ||
| 3 | 0113 | Cultivation of vegetables, melons, roots, and tubers | ||
| 4 | 0114 | Cultivation of sugar cane | ||
| 5 | 0116 | Cultivation of fiber crops | ||
| 6 | 0119001 | Flowers and Flower Buds Cultivation | ||
| 7 | 0121 | Growing of grapes | ||
| 8 | 0123001 | Fruits and Citrus Cultivation | ||
| 9 | 0124 | Growing of pome fruits and stone fruits | ||
| 10 | 0125 | Growing of other tree and bush fruits and nuts | ||
| 11 | 0126 | Growing of oleaginous fruits | ||
| 12 | 0127 | Growing of beverage crops | ||
| 13 | 01289 | Growing of aromatic, drug and pharmaceutical crops | ||
| 14 | 0161 | Support activities for crop production | 10 | |
| 15 | 0162 | Support activities for animal production | ||
| 16 | 0163 | Post-harvest crop activities | ||
| 17 | 0164 | Seed processing for propagation | ||
| 18 | 0210 | Silviculture and other forestry activities | ||
| 19 | 0240 | Support services to forestry |
Manufacturing sector
| ISIC4 | Business activity | Minimum Capital | Conditions and controls for foreign direct investment | |
| 20 | 10 | Manufacture of food products (except): 1071- Manufacture of bakery products 105 – Manufacture of dairy products Cultivation of fiber crops108 – Manufacture of prepared animal feeds | 15 | – use of modern technology – achievement of high added value – contribution in the research and development field – satisfaction of the requirements of the licensing entities in the state |
| 21 | 10 | Manufacture of beverages (except): 1101 -Distilling, rectifying, and blending of spirits 1102 -Manufacture of wines 1103- Manufacture of malt liquors and malt | 15 | |
| 22 | 14 | Manufacture of wearing apparel (except): 14109 – Tailoring and Sewing of Wearing Apparel 1410122 – Military Garments Manufacturing | 15 | |
| 23 | 15 | Manufacture of leather and related products | 15 | |
| 24 | 16 | Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials | 15 | |
| 25 | 2012002 | Straight or Complex Fertilizers Manufacturing | 15 | |
| 26 | 2013 | Manufacture of plastics and synthetic rubber in primary forms | 15 | |
| 27 | 2021 | Manufacture of pesticides and other agrochemical products | 15 | |
| 28 | 2022 | Manufacture of paints, varnishes, and similar coatings, printing ink and mastics | 15 | |
| 29 | 2023 | Manufacture of soap and detergents, cleaning and polishing preparations, perfumes, and toilet preparations | 15 | |
| 30 | 2029006 | Glues and Prepared Adhesives Manufacturing | 15 | |
| 31 | 2029008 | Manufacture of dyestuffs and pigments | 15 | |
| 32 | 2029009 | Textiles and Leather Finishing Used Chemical Materials Manufacturing | 15 | |
| 33 | 2029013 | Manufacture of photographic plates, films | 15 | |
| 34 | 2029019 | Gelatine and Its Derivatives Manufacturing | 15 | – use of modern technology – achievement of high added value – contribution in the research and development field – satisfaction of the requirements of the licensing entities in the state |
| 35 | 2029021 | Essential Oils Manufacturing (Essence) | 15 | |
| 36 | 2029022 | Extracted Natural Aromatic Products Manufacturing | 15 | |
| 37 | 2029023 | Aromatic Distilled Waters Manufacturing | 15 | |
| 38 | 2029024 | Matches Manufacturing | 15 | |
| 39 | 2029025 | Welding Powders and Pastes Manufacturing | 15 | |
| 40 | 2030 | Manufacture of man-made fibres | 15 | |
| 41 | 2100 | Manufacture of pharmaceuticals, medicinal chemical and botanical products | 15 | |
| 42 | 22 | Manufacture of rubber and plastics products | 15 | |
| 43 | 23 | Manufacture of other non-metallic mineral products | 15 | |
| 44 | 24 | Manufacture of basic metals (except): 242 Manufacture of basic precious and other non-ferrous metals 2432 Casting of non-ferrous metals | 20 | |
| 45 | 25 | Manufacture of fabricated metal products, except machinery and equipment (except) 2529 Manufacture of weapons and ammunition | 15 | |
| 46 | 26 | Manufacture of computer, electronic and optical products | 15 | |
| 47 | 27 | Manufacture of electrical equipment | 20 | |
| 48 | 28 | Manufacture of machinery and equipment n.e.c. (except) 28259 Tobacco Processing Machinery Manufacturing | 100 | |
| 49 | 29 | Manufacture of motor vehicles, trailers, and semi-trailers | 100 | |
| 50 | 3011101 | Building of Commercial Vessels | 100 | |
| 51 | 3011103 | Ships and Floating Structures Sections Manufacturing | 100 | |
| 52 | 3011905 | Construction of Drilling Platforms, Floating or Submersible | 100 | |
| 53 | 3011906 | Construction of Floating Structures | 100 | |
| 54 | 3011907 | Building of Hovercraft | 100 | |
| 55 | 3012 | Building of pleasure and sporting boats | 15 | |
| 56 | 3020 | Manufacture of railway locomotives and rolling stock | 20 | |
| 57 | 3030 | Manufacture of air and spacecraft and related machinery (except): 3030006 Military Ballistic and Guided Missiles Manufacturing | 100 | |
| 58 | 3090 | Manufacture of transport equipment n.e.c. | 20 | |
| 59 | 31 | Manufacture of furniture | 15 | |
| 60 | 3220 | Manufacture of musical instruments | 2 | |
| 61 | 3230 | Manufacture of sports goods | 3 | |
| 62 | 3240 | Manufacture of games and toys | 3 | |
| 63 | 3250 | Manufacture of medical and dental instruments and supplies | 20 | |
| 64 | 3290 | Other manufacturing n.e.c. | 3 | |
| 65 | 3312001 | Repair and maintenance of train engines | 15 | |
| 66 | 3312002 | Repair and maintenance of engines ship | 15 | |
| 67 | 3315001 | Repair and maintenance of ships | 15 | |
| 68 | 3315004 | Repair and maintenance of trains and railway equipment | 15 | |
| 69 | 3315005 | Maintenance and Repair of Aircrafts Engines | 15 | |
| 70 | 3315006 | Repair and maintenance of aircraft | 15 |
Service sector
| ISIC4 | Business activity | Minimum Capital | Conditions and controls for foreign direct investment | |
| 71 | 6910002 | Legal Consultancy Offices | As per the applicable regulations | – Not to advocate before the UAE courts. – Not to carry out any judicial procedure before courts, arbitral tribunals, and judicial and administrative committees. – Not to carry out attestation activities – To obtain the approval of the relevant entities in charge of licensing such activities in the State – To be a natural or legal person known for its excellence in this field |
| 72 | 692 | Accounting, bookkeeping, and auditing activities; tax consultancy | As per the applicable regulations | Only permissible for tax planning for businesses and consultancies, preparing and reviewing taxes on businesses |
| 73 | 711 | Architectural and engineering activities and related technical consultancy | As per the applicable regulations | To be a natural or legal person known for its excellence in this field |
| 74 | 862 | Medical and dental practice activities | ||
| 75 | 75 | Veterinary activities | ||
| 76 | 620 | Computer programming, consultancy, and related activities | As per the applicable regulations | To provide a technical team of no less than 5 specialized programmers by the end of the first year of the company |
| 77 | 72 | Scientific research and development | As per the applicable regulations | As per the applicable regulations |
| 78 | 7730-77300 | Renting and leasing of other machinery, equipment, and tangible goods | ||
| 79 | 471 | Retail l sale in non-specialized stores (except Cooperative Societies 4711001) | ||
| 80 | 731 | Advertising | ||
| 81 | 732 | Market research and public opinion polling | ||
| 82 | 702 | Management consultancy activities | ||
| 83 | 712 | Technical testing and analysis | ||
| 84 | 331 | Repair of fabricated metal products, machinery, and equipment (except ships or aircraft and other transport equipment) | ||
| 85 | 8121-81210 | General cleaning of buildings | ||
| 86 | 742 | Photographic activities | ||
| 87 | 8292-82920 | Packaging activities | ||
| 88 | 823 | Organization of conventions and trade shows | ||
| 89 | 741 | Specialized design activities | ||
| 90 | 7490005 | Legal Translation Services | ||
| 91 | 7490006 | Translation services, movies, and television programs | ||
| 92 | 7490012 | Translation Publications Services | ||
| 93 | 8299002 | Translation Services | ||
| 94 | 41 | Construction of buildings | As per the applicable regulations | Only permissible for large-scale infrastructure projects such as airports, highway roads, sports facilities and projects whose value exceed AED 450,000,000 |
| 95 | 42 | Civil engineering | ||
| 96 | 432 | Electrical, plumbing, and other construction installation activities | ||
| 97 | 433 | Building completion and finishing | ||
| 98 | 431 | Demolition and site preparation | ||
| 99 | 439 | Other specialized construction activities | ||
| 100 | 7730009 | Construction and Building or Demolition Machines and Equipment Renting | ||
| 101 | 851 | Pre-primary and primary education | As per the applicable regulations |
|
| 102 | 852 | Secondary education | ||
| 103 | 853 | Higher education | ||
| 104 | 854 | Other education | ||
| 105 | 370 | Sewerage | As per the applicable regulations | As per the applicable regulations in this regard |
| 106 | 382 | Waste treatment and disposal | ||
| 107 | 3900001 | Pollution Consequences Treatment and Environment Protection | ||
| 108 | 861 | Hospital activities | 100 |
|
| 109 | 869 | Other human health activities | 70 | As per the applicable regulations |
| 110 | 8211001 | Hotel Management | As per the applicable regulations | |
| 111 | 8211004 | Restaurants Management | ||
| 112 | 90009 | Creative activities and presentation of art drama (theater) | Permissible only for theater activities and live bands As per the applicable regulations | |
| 113 | 9000104 | Music Band | ||
| 114 | 9000110 | Circus | ||
| 115 | 8130002 | landscape and gardening services | ||
| 116 | 9103-91030 | Botanical and zoological gardens and nature reserves activities | Permissible only for public garden services and specialized garden services. | |
| 117 | 5012-50120 | Sea and coastal freight water transport | As per the applicable regulations | |
| 118 | 5022001 | Internal Water Transportation of Goods | ||
| 119 | 7730016 | Commercial Ships Rental | ||
| 120 | 5222002 | Ship Piloting and Towing | ||
| 121 | 5222007 | Marine towing of boats and jet sk | ||
| 122 | New | Activities of holding companies in intellectual property |