RAKEZ OFFERS 100% FOREIGN OWNERSHIP IN MAINLAND WITH FDI COMPANY SET-UP
In response to the UAE Government’s efforts to provide relief to businesses during the COVID-19 pandemic, a number of free zones have announced major relief packages including fee waivers, rent holidays, and waivers of penalties and also introduced new license packages with a reduced fee to attract foreign investors. Ras Al Khaimah Economic Zone (RAKEZ) has also announced its latest addition to company set-up offerings, Foreign Direct Investment (FDI) to attract more foreign investment in the Non-Freezone Sector.
RAKEZ will be collaborating with Ras Al Khaimah Department of Economic Development (RAK DED) in the setting up of FDI companies in the mainland. The new formation structure allows a 100% foreign ownership of companies in Ras Al Khaimah’s mainland, enabling investments in various booming sectors, such as industrial, agricultural, and service sectors while owning and controlling all shares in non-free zone companies.
RAK DED will receive the application for setting up a company in Mainland through RAKEZ and will approve the applications ensuring that the activities which the investors intend to do fall under the ‘positive list’ of eligible sectors issued by the UAE Cabinet under FDI Law, where 100% foreign company ownership is permitted. Upon ensuring that all the requirements are satisfied, RAK DED will then reserve the trade name and issue the FDI license, according to the mechanism set by the UAE Cabinet. After this, RAKEZ will issue its license and documentation to the investor.
The said positive list of eligible sectors notably includes the following:
· Renewable energy
· Transport & Logistics
· Hospitality & Food services
· Information and communications
· Professional, scientific, and technical activities
· Administrative and support services
· Health care
· Arts and Entertainment
The companies licensed under this FDI structure will be considered as national companies and will have full confidentiality of technical, economic, and investment information. There will also be eligible to make financial transfers outside the country for project returns and will have their assets protected from being claimed by the state for public use or benefit through a guaranteed no expropriation. Other benefits enjoyed by the FDI companies include ease of adding partners and transferring ownership to new investors.
For more details on the Foreign Direct Investment (FDI) Law and criteria for availing the scheme, please click here.