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ARTICLE · 27 NOVEMBER 2019

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Rima Mrad of BSA Ahmad Bin Hezeem & Associates LLP looks at the potential impact of the new Foreign Direct Investment law on existing shareholding arrangements in companies.

United Arab EmiratesGovernment, Public Sector
Rima Mrad
Rima Mrad
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Rima Mrad of BSA Ahmad Bin Hezeem & Associates LLP looks at the potential impact of the new Foreign Direct Investment law on existing shareholding arrangements in companies.

The enactment of the ground-breaking Federal Decree Law No. 19/2018 on foreign direct investments towards the end of 2018 was a clear indication of the UAE's continuing efforts to encourage and increase foreign investments in the country. Prior to the enactment of this law, there had been a number of steps taken to enhance commercial laws and regulations in areas which were potentially relevant to foreign investment starting with the remodeled UAE Federal Law No. 2 /2015 On Commercial Companies, UAE Federal Law No. 9/2016 on bankruptcy and Federal Law No. 20/2016 on pledging movable assets as a guarantee for debts.

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