Following the significant changes announced last year to the UAE’s Commercial Companies Law regarding foreign direct investment, this included the amendment to Article 10, effective as of 1 June 2021.  This amendment affects direct foreign ownership of onshore UAE companies by removing the fundamental default requirement of 51% UAE national ownership of an onshore company. 

Following its implementation, the UAE issued a Cabinet Decision, which — along with the announcements made by several Emirates listing the approved licenced activities open to 100% foreign ownership — has already begun to change the landscape of private investment in the UAE. In the latest update, by Stephenson Harwood LLP examines these changes, and their implications for existing shareholders and new investors.