FDI License Abu Dhabi
A new FDI(Foreign Direct Investment) license implemented by the Abu Dhabi Department of Economic Development (ADDED) with 100% ownership of the business investors within the emirate. The FDI license targets businesses with capital ranging from Dh2 million to Dh100 million or even higher. This FDI license will create a positive impact on Abu Dhabi’s business landscape as this covers almost 122 different economic activities related to agricultural, industrial, and services sectors.
The owner able chairman of ADDED, Mohammed Ali Al Shorafa, said that the chamber will enhance the local investment environment and strengthen the competitiveness of the economy in Abu Dhabi Through some policies that provide more investment opportunities in various oil sectors.
The issuance of FDI license is according to the provisions of Federal Law No (19) of 2018 regarding Foreign Direct Investment to promote the positive investment environment and achieve sustainable economic development in Abu Dhabi. If you are planning for a business setup in Abu Dhabi, then this will be great news for you.
The foreign investment above 49% will not be permitted in sectors that come under the negative list. The UAE Cabinet has the discretion to amend the “negative list” by adding or removing sectors. There are currently 13 sectors specified in the “negative list”, including banking, insurance, and commercial agencies.
Al Shorafa said the FDI license would “encourage investors, spur business development for foreign companies as well as attract businesses in technology and advanced industries” that contribute to the emirate’s economic diversification policy.
Beneficiaries of FDI License
- Foreign investors
- Residents in the UAE
- Legal persons, and
- Foreign companies that are engaged in FDI projects
Steps Involved in Applying for The License
- Submitting the license application,
- Obtaining the approval after fulfilling all conditions and completing all the required documents,
- Payment of fees followed by the issuance of the proposed license under ‘Foreign Direct Investment’
Benefits of FDI License
- Consolidates Abu Dhabi’s position as a global hub for investment.
- Ease of doing business.
- Deliver a strong positive impact on the emirate’s investment environment as several activities applicable to foreign investments.
- Encourage investors, spur business development for foreign companies as well as attract businesses in technology and advanced industries.
- Contributes to achieving various objectives such as expanding the base of foreign investments.
- Increasing the size of capital flows.
- Enhancing and diversifying local production.
- Increasing the emirate’s exports of goods and services.
Activities That Comes Under FDI License
Industrial activities permitted under the license include manufacturing of food and beverages products, clothing and leather production, wood and cork products, as well as the production of plastics and synthetic rubber in its primary forms, fertilizers, pesticides, and other agricultural chemical products.
The list of service activities that can be practiced with the license includes legal consulting; accounting, auditing, and tax advisory services; architectural and engineering activities; medical and dental clinics; veterinary activities; computer programming services; consultancy, research, and development activities in science and technology, among other activities.
A total of 13 activities are currently not covered by the newly-issued license, which includes postal and telecommunications services; audio and video media related services; petroleum exploration and production; ground and air transportation services; activities related to investigations, security and military sectors; the manufacturing of weapons, explosives as well as military equipment, devices, and clothing; printing and publishing services; banking and finance activities; payment and cash handling systems; commercial agents services; insurance activities, medical retailing such as private pharmacies; Haj and Umrah services; employment of labour, servants, and recruitment of employees; activities related to poison control centers, blood banks, and health quarantines; and finally, water, electricity, and fisheries services.
Source: Khaleej Times