UAE's new legal reforms to usher in more FDI and support SMEs, experts say

UAE's new legal reforms to usher in more FDI and support SMEs, experts say
© Khushnum Bhandari The UAE’s real estate sector, which is bouncing back from the pandemic-induced slowdown, is expected to benefit from the government’s legal reforms. Photo: Khushnum Bhandari / The National

The new legal reforms recently announced by the UAE government are expected to help the country attract more foreign direct investment and support the growth of small and medium enterprises to strengthen its economy, according to experts and top executives.

The President, Sheikh Khalifa formally approved the most extensive legal reforms in the country’s history earlier this week ahead of the Golden Jubilee celebrations of its formation. These include greater protection of personal data, stronger copyright rules and stricter measures to tackle fake news.

Other initiatives include amendments to the law on electronic transactions and trust services that give digital signatures the same weight as a handwritten signature. A law to protect industrial property and to regulate the procedures for its registration, use and assignment was also issued.

UAE's new legal reforms to usher in more FDI and support SMEs, experts say
Download our mobile app

The government will also allow investors and entrepreneurs to establish and fully own onshore companies in almost all sectors, except activities deemed to be “strategic” as part of the new changes.

“The leadership’s announcement of the most extensive legal reforms in the country’s history sets the tone for the next 50, with significant amendments that will further safeguard residents and benefit businesses across the UAE,” Talal Al Dhiyebi, group chief executive of Aldar Properties, told The National.

“With changes made around digital signatures, data protection, online security, copyright and the remit of onshore commercial companies, we will attract greater investment to the UAE and strengthen the private sector’s competitiveness.”

The legal overhaul is in line with the UAE’s ambitions to become a global business hub and further continue to diversify its economy in the next 50 years.

The Arab world’s second-largest economy is undertaking various measures to boost its economy. This year, it unveiled a new industrial strategy to boost the contribution of the industrial sector to Dh300 billion ($81.68bn) in the next 10 years, from Dh133bn currently.

The country also overhauled its commercial companies’ law last year to attract more foreign capital and annulled the requirement for onshore companies to have an Emirati shareholder.

UAE's new legal reforms to usher in more FDI and support SMEs, experts say
© Provided by The National The legal reforms will further safeguard residents and benefit businesses across the UAE, said Talal Al Dhiyebi, group chief executive of Aldar Properties.

The latest changes are expected to supplement the UAE’s previous reforms and further help its economy, according to experts.

“The updated laws cover a wide range of areas and are essential for two overarching reasons,” said Scott Livermore, chief economist at Oxford Economics Middle East.

“Firstly, they follow up on announcements made over the past year to solidify the key economic and social policy moves.

“Secondly, they demonstrate that key sectors such as digital and cultural industries need modern regulations that support progress but offer protection in areas such as intellectual property.

“Both of these factors will provide greater confidence to foreign talent and investors.”

Among the latest reforms to be announced, the government strengthened copyright laws to offer greater protection to people working within creative sectors. The law covers all major issues relating to authors’ rights and neighbouring rights, including the right to protest against alteration of the work if the alteration distorts the author’s intent.

“Creative sectors of the economy, including art and culture, music, fashion and the knowledge arena, are expected to benefit significantly from sweeping reforms on intellectual property rights with SMEs leveraging from imploding growth opportunities,” Ullas Rao, assistant professor of finance at Heriot-Watt University Dubai, said.

“SMEs would benefit from improved trust and productivity, and would also promote growth, create employment opportunities and expand business opportunity,” according to Saad Maniar, senior partner at consultancy Crowe. However, the cost of compliance would increase but at the same time the risk will also be reduced to a “great extent”.

The real estate sector, which is bouncing back from the pandemic-induced slowdown, is also expected to benefit owing to the new legal reforms enacted by the government.

The new digital signature law will aid in the increase of new property transactions, said Lewis Allsopp, chief executive of Dubai-based real estate agency, Allsopp & Allsopp.

“The real estate market will benefit from this new law greatly with overseas investors, sellers and end-user buyers having no need to visit the country or be in the country at the time of signing. This makes real estate transactions more efficient and convenient for everyone involved.”

The latest changes are also expected to support the UAE’s ranking on various fronts including business and non-business parameters, said Junaid Ansari, senior vice president of investment strategy and research at Kamco Invest.

“The country has seen solid investor interest this year with Abu Dhabi being one of the best-performing markets globally but there are a number of new initiatives in the pipeline relating to privatisation of state entities, listing on local exchanges, attracting companies in the tech sector announced recently. The reforms would ensure the success of these initiatives.”

Earlier this month, Dubai announced plans to list 10 government and state-owned companies on the Dubai Financial Market as part of a broader strategy to double the financial market’s size to Dh3 trillion.

The emirate’s authorities also launched a market maker fund worth Dh2bn as it seeks to encourage listings from sectors such as energy, logistics and retail.

Abu Dhabi is launching a Dh5bn IPO fund to help encourage and support private companies to list on the local stock market. The IPO fund will invest in five to 10 private companies a year, with a special focus on SMEs, and will aim to have a ticket size of between 10 per cent and 40 per cent of the float.

The new reforms “will bring the UAE closer to the adoption of global best practices and are aimed at pushing the UAE as a trade and business hub of the region”, Mr Ansari said.

The country’s adoption of the most recent innovations has fuelled strategies for stabilising and advancing economic growth, according to Tareq Hijazi, public sector director at Microsoft UAE.

“The UAE has not only successfully adapted to the past year’s seismic shift in the way we work and learn but has also excelled in large-scale digital transformation by facilitating the best in skilling initiatives, hybrid models and championing sustainable operations across all industries,” he told The National.

News Related

OTHER NEWS

Canada expands training mission in Ukraine, promises non-lethal aid

© Vayar Military Agency Agency via AP Belarusian military vehicles gather preparing to attend Belarusian and Russian joint military drills in Belarus on Tuesday, Jan. 25, 2022. Russia has sent ... Read more »

TCS No. 2 in global IT services brand value: Report

© Provided by The Times of India BENGALURU: India’s software supremacy continues to show itself on the global stage. Indian IT services firms have outpaced their peers in the US, ... Read more »

Köniz gelingt die Revanche gegen Wiler-Ersigen

Der Meister gewinnt ein unterhaltsames Berner Unihockey-Derby 7:3. Zu Beginn des Schlussdrittels bangen beide Teams um Manuel Engel. © Foto: Raphael Moser Tim Aebersold feiert sein Tor zum 6:2 mit ... Read more »

Republic Day parade: Socially distant event sees 6,000 in attendance

© Provided by The Indian Express A flypast with 75 aircraft, women officers performing stunts on bikes and a tableau with technology illustrating the ‘metaverse’ were among highlights at Rajpath ... Read more »

DCP wins 11th President's Medal for Gallantry

© Provided by The Indian Express From heading a team in the Batla House encounter to busting the terror group of Indian Mujahideen, Delhi Police’s Deputy Commissioner of Police (Special ... Read more »

Visually-challenged man's papers for sarpanch rejected because he signed in Braille

© Provided by Hindustan Times A livid Shantilal Sabar of Odisha’s Nuapada district asked why when he could pass the matric examination conducted by the Odisha Board of Secondary Education ... Read more »

US: Fed likely to raise rates in March amid soaring inflation

© Provided by DW US inflation reached a four-decade high of 7% in December Federal Reserve Chair Jerome Powell indicated on Wednesday that the US central bank was ready to ... Read more »

Russia, Ukraine agree to uphold ceasefire in Normandy talks

© Provided by DW A service member of the Ukrainian armed forces walks at combat positions near the line of separation from Russian-backed rebels in the Donetsk region With tensions ... Read more »

Rationalise levies for clean energy tech: Sumant Sinha, senior V-P, Assocham

© Provided by The Financial Express Given that there is no GST on power output, all these input taxes are a cost to the developer and impact the viability of ... Read more »

Ukraine crisis: US offers no concessions in response to Russia's demands

The Biden administration and Nato told Russia on Wednesday there will be no US or Nato concessions on Moscow’s main demands to resolve the crisis over Ukraine. In separate written ... Read more »

Tesla Q4 2021 Earnings Report: Beats Expectations Yet Again

© InsideEVs Tesla Model Y Another profitable quarter in the books. Tesla just released its Q4 2021 earnings report and the numbers are impressive. Tesla again turned a profit, which makes ... Read more »

Another TikTok exec heads for the exit

TikTok executive Sean Kim left the company earlier this month. Main: Getty Images; Inset: Linke A week after TikTok ousted its marketing chief Nick Tran, the short-video app’s head of ... Read more »

Budget may provide booster dose to meet climate goals

© Provided by The Times of India NEW DELHI: At a time when India is focusing on decarbonising its economy, industry is pitching for steps to encourage green mobility in ... Read more »

Boris Johnson came out fighting in style against Keir Starmer – especially for a man under pressure

Battler Boris FOR a man under insane pressure Boris Johnson came out fighting yesterday and with some style. Of course nothing short of a nuclear blast will wipe away Keir ... Read more »

Highway Code rule changes LIVE – Every new 2022 change REVEALED including safety for cyclists at roundabouts & junctions

THERE are major changes happening to the Highway Code from next week The new rules are split into three main categories and ultimately aim to improve safety for pedestrians, cyclists ... Read more »

Arizona marks 2 years since state's first COVID-19 case

© Provided by Associated Press FILE — Dr. Rebecca Sunenshine, of Maricopa County Department of Public Health, left, and Dr. Shauna McIsaac, of Pinal County Department of Public Health, speak ... Read more »

GOP redistricting plan passes in Kansas; court fight looms

© Provided by Associated Press This image shows the “Ad Astra 2” congressional redistricting plan for Kansas drafted by the Kansas Legislative Research Department for Republican leaders in the GOP-controlled ... Read more »

Gates Foundation adds board members following Bill and Melinda's divorce

The Bill and Melinda Gates Foundation named four new members to its board of trustees on Wednesday, marking the first outsiders added to the charity’s board in its two-decade history. ... Read more »

Israeli settlers rage through Palestinian town, marking the latest 'nationalistically-motivated' attack in the region

Israeli settlers in a convoy of cars rampaged through a Palestinian town in the West Bank near Nablus on Monday evening, marking the latest in a string of violent incidents ... Read more »

Moderna begins testing omicron-matched COVID shots in adults

The Associated PressFILE – A sign marks an entrance to a Moderna building in Cambridge, Mass., on Monday, May 18, 2020. On Wednesday, Jan. 26, 2022, the pharmaceutical company announced ... Read more »

Janet Jackson doc explores her scandalous marriage to James DeBarge

Janet Jackson and James DeBarge eloped in 1984 but the marriage was annulled the next year. Getty Images It was an attempt to take control of her life from father ... Read more »

Henrik Lundqvist's best Rangers moments No. 2: Comeback complete

Leading up to Friday’s ceremony in which the Rangers will retire Henrik Lundqvist’s No. 30 at the Garden, The Post is taking a look at the King’s five best moments ... Read more »

‘Property Brothers' renovation home sells fast for $730K

A home renovated by the “Property Brothers” in 2014 has found a buyer just one week after it hit the market. HGTV A Georgia home renovated by the “Property Brothers” ... Read more »

Woman praises man for not staring at her at the gym during an ‘uncomfy' squat but some slam her for her double standard

GOING to the gym should be a comfortable experience for everyone. However, when Libby Christensen was doing her daily work out, she was pleasantly surprised to see a man had ... Read more »

Advienne speaks on being replaced by Mikyx at Excel

Henk “Advienne” Reijenga has spoken out on his sudden replacement as the LEC support for Excel former by Mid-Season Invitational champion Mihael “Mikyx” Mehle. Advienne was suddenly replaced by Mikyx ... Read more »

How to scan enemies in Rainbow Six Extraction

© Provided by Dot Esports Rainbow Six Extraction can be an intense experience, especially at higher difficulty levels when new mutations and enemies turn incursions into deadly missions. Trying to ... Read more »

LEC Team of the Week: 2022 Spring Split week 2

© Provided by Dot Esports Another exciting week has flashed by in Europe as the LEC Spring Split is well underway in Berlin, with teams jockeying for early positioning within ... Read more »

Jamie Carragher sends message to Everton fans after more Goodison Park protests

Jamie Carragher has sent a message to Everton fans amid what he has described as “understandable” frustrations, amid renewed protests outside the club’s stadium. With a number of supporters opposed ... Read more »

‘Useless', ‘Absolutely embarrassing' – These West Brom fans slam key figure after Preston setback

© Provided by Football League World Championship – Barnsley v West Bromwich Albion West Brom fell to a disappointing 2-0 defeat at home to Preston this evening as the fans ... Read more »

Mizkif loses $20K after bet with MrBeast in League of Legends

Sometimes the streaming community is shocked by the amount of money content creators make, but at least Matthew “Mizkif” Rinaudo and Jimmy “MrBeast” Donaldson have decided to use some of ... Read more »

Hearts 1-2 Celtic: Japanese star Hatate nets first goal in Scotland

For Celtic the width of a Tynecastle post proved crucial in the end. Stepping forward to take a Hearts penalty with 19 minutes to play Liam Boyce had the opportunity to ... Read more »

Celtic survive second-half scare to win at Hearts and keep pressure on Rangers

© Alamy Stock Photo Celtic’s Nir Britton celebrates victory. CELTIC SURVIVED A strong second-half fightback from Hearts to grind out a 2-1 victory in a pulsating cinch Premiership encounter at ... Read more »

The Repair Shop fans joke man's 135-year-old family heirloom is a time machine

The Repair Shop viewers were bemused by what they joked was a ‘time machine’ on the latest episode of the heartwarming show. The BBC series followed the journey behind an ... Read more »

Frankreich komplettiert EM-Halbfinals

© KEYSTONE/AP/Tibor Illyes Olympiasieger Frankreich erreicht an der Handball-EM als letztes Team die Halbfinals und trifft dort auf Schweden. Den zweiten Finalisten machen Titelverteidiger Spanien und Dänemark unter sich aus. ... Read more »

#Showbiz: Mila Jirin glad her business picked up again

© Provided by New Straits Times KUALA LUMPUR: With her catering and wedding planning business interrupted for almost two years due to the pandemic, singer-turned-entrepreneur Mila Jirin is relieved that ... Read more »

NYC spread owned by Warhol superstar Brigid Berlin sells for $1.1M

Ich bin ein Berlin-er: The one-time home of the actress and photographer (above) just sold. Matthew McDermott It’s picture-perfect. A Kips Bay apartment owned by the late Brigid Berlin — ... Read more »

PICS: Farhan Akhtar pulls off a smart white co ord set as he goes out and about in the city

Farhan Akhtar is one of those performers who has always dazzled audiences with his unwavering commitment and ability to immerse himself in the flesh of each character he portrays. And, ... Read more »

Bank of Canada holds interest rates at 0.25% but hints of hike to come

© Provided by Financial Post Tiff Macklem, governor of the Bank of Canada, during a news conference in Ottawa on Dec. 15, 2021. The Bank of Canada declared an end ... Read more »

Chevron, Marathon raise quarterly dividend as energy prices rally

(Reuters) -Chevron Corp and Marathon Oil Corp on Wednesday became the latest U.S. oil and gas companies to raise quarterly dividends as a rebound in fuel demand drives energy prices ... Read more »

Little Guy Micro Max Trailer Is Ready For Adventures, Big Or Small

© Motor1.com Copyright Little Guy Micro Max Trailer A pretty lightweight trailer that can be easily towed. In the realm of motorhomes and adventure vehicles, it isn’t always about going ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic