What is the importance of the new investment law in the UAE?

The new law offers many advantages that help in investing in Dubai by providing all sources of attraction to foreign and Arab investors, as well as local investors. The importance of the new law is due to several important points that it provides in a different way to support the economy, which are:

• The new law supports ownership rights for foreign investors.
• The project is fully supported by investment companies in the United Arab Emirates in some sectors of the economy.
• The new law allows the founder of the company to own 100 percent of it, which contributes to solving many of the problems facing investors that cause a disturbance in the company’s balance due to the lack of an ownership law.
• Lack of ownership of assets in companies at the end of 2019 reached 49 percent.
• The new law applies only to strategic sectors so far until further details emerge.

Consequences of implementing the new investment law in the UAE

The new law, if fully implemented, will produce many results, which are the results that all investors aspire to when thinking about the obstacles they may face when thinking about how to invest in Dubai. Here are some of those effective results:

In many of the free zones that greatly support investment in Dubai and are also one of the largest economic pillars that the UAE in general and Dubai in particular rely on for investment pillars, the new law provides the right to own property in those free zones that include thousands of companies operating in various fields. Economy.

The free zone in Dubai is considered a role model in stimulating the economy and also greatly supporting investors through its high ability to adapt to the new law and the ability to give the greatest opportunities to investors in accordance with what is approved by the new investment law and facilitating the establishment of a commercial license in Dubai.

The role of the new investment law in attracting investments

The new investment law plays a vital role in attracting investments to the country, for several reasons:

• Providing a suitable investment environment: The law aims to improve the investment environment and provide legal and economic security for investors, which increases the attractiveness of the country as a place for investment.
• Stimulating national and foreign investment: The law can provide a range of incentives and benefits to both local and foreign investors, encouraging the direction of investments towards the state.
• Facilitating administrative procedures: The law may contain reforms to simplify and speed up administrative procedures related to establishing companies and obtaining licenses and permits, which will attract investors looking for an easier and more efficient administrative experience.
• Providing legal protection: By establishing laws that protect the rights of investors and ensure effective arbitration procedures to resolve disputes, the law encourages greater trust between investors and the government.
• Enhancing transparency and accountability: The law could include requirements to enhance transparency and accountability in investment operations and corporate management, which enhances investor confidence in the economic environment.
• Improving infrastructure and public services: The law may include arrangements to improve infrastructure and provide public services in investment areas, making them an attractive place for investment.

How does the new investment law affect the rights of foreign investors?

The new investment law could affect the rights of foreign investors in multiple ways, and this depends on the exact content of the law and how it is implemented and applied. Here are some ways the law may affect the rights of foreign investors:

1. Facilitating investment procedures: The law may provide easier and more convenient procedures for foreign investors to establish companies and invest in various sectors.
2. Protection of property rights: The law may include incentives to protect the intellectual property and property rights of foreign investors, which enhances their confidence in the investment environment.
3. Providing benefits and privileges: The law may provide special benefits and privileges to foreign investors, such as tax incentives, or easier access to the local market.
4. Providing a stable investment environment: By establishing laws and policies that ensure economic and political stability, the law can help create a stable investment environment that attracts foreign investors.
5. Regulating relations between businesses and the government: The law may provide mechanisms to regulate relations between businesses and the government, providing a clear legal framework for operating and dealing.
6. Improving arbitration procedures: By improving arbitration procedures and providing a legal environment that encourages quick and effective dispute resolution, the law can enhance the confidence of foreign investors.

Investment costs in Dubai

Investment costs in Dubai are calculated by conducting a study of any specific project, depending on the activity or field that you have chosen. The value of investment costs in Dubai is determined, and also according to the extent of expansion in the field, as the costs differ whether they are small projects, for shops, etc. Likewise, indicate whether the investment idea is to establish a factory or a company. Also, you can establish a company in Dubai at the lowest costs by contributing to already established companies.

Conditions for establishing a company in Dubai

The UAE is working to facilitate all ways of investing in Dubai through the new investment law, as it makes the conditions for establishing a company in Dubai simple and uncomplicated, so invest in Dubai through several important steps that must be followed to fulfill the conditions for establishing a company in the free zone in particular or in Dubai. in general:

• Determining the activity: The first step in order to start investing in Dubai is to determine your activity, and it also depends on you choosing the activity that is appropriate for the location and also that the activity is within the needs of the population consuming the product in the location you have chosen and the activity that has been identified.
• Commercial Registration: It is the second step. In this step, you can determine the trade name of the company that you are establishing, and based on that you begin to start it. You must fulfill all the requirements of the Department of Economic Development in order to be able to obtain approval to register your company. There are some conditions in order to obtain approval. Department of Economic Development on commercial registration:

1. The trade name you have chosen must not violate public taste and must not contain inappropriate phrases or words.
2. The legal form of the company must be linked to the trade name.
3. The company name must not be registered by another company.
4. Also, the trade name must reflect the product or activity it offers.
5. The trade name must be free of the word “God” or “the Lord” or any of the beautiful names of God.
6. The trade name must not include any name of government institutions or political slogans.

• Initial approval: You must initially obtain approval from the General Administration of Residency and Foreigners Affairs, and then we will move on to initial approval from the rest of the relevant bodies.
• Determining the location of the company: It is necessary for a company to be established in Dubai for foreigners to have a fixed location and a legal headquarters in Dubai in particular or in the Emirates in general, as it requires you to obtain a documented lease contract from the Dubai Real Estate Regulatory Authority.
• Approval of the relevant authorities in the company: such as transportation authorities, as well as the authorities responsible for insurance in the company, as well as legal consultations.
• Pay the cost of a business license in the Dubai Free Zone .

Advantages of investing in the Emirates

There are many advantages that make investing in the UAE tempting and attractive to investors, including:

• Advanced investment environment: The UAE enjoys an advanced investment environment with an effective legal and economic system that protects investors’ rights and encourages growth and innovation.
• Political and economic stability: The UAE is characterized by political and economic stability, which provides a safe and favorable environment for long-term investment.
• Advanced infrastructure: The UAE has a modern and advanced infrastructure, including airports, ports, roads and communications, which facilitates transportation and distribution operations and enhances the national economy.
• Diversity of economic sectors: The UAE offers a variety of economic sectors that investors can benefit from, including real estate, tourism, technology, energy, education, and health.
• Easy access to regional and global markets: The UAE constitutes an ideal base for accessing regional and global markets due to its strategic location in the heart of the Middle East, and provides good communications and advanced infrastructure.
• Investment incentives: The UAE government provides a range of incentives and tax exemptions to investors, including exemption from income taxes, capital taxes, and customs duties.
• Development of innovation and technology: The UAE is interested in developing the innovation and technology sector, which attracts startups and innovative companies and creates new opportunities for investors in areas such as financial technology, artificial intelligence, and e-commerce.
• Quality of Life: The UAE provides a high quality of life with a wide range of health, educational and entertainment services, making it a preferred destination for investors looking for a vibrant and developed environment in which to live and work.

In the end, we have reviewed for you everything related to the new investment law in the Emirates, how to establish a company in Dubai, and also the costs of investing in Dubai .