Abu Dhabi’s Economic Development Department has announced it has issued a foreign direct investment license. It has been issued in line with Federal Decree-Law No. 19/2018 and will enable investors to hold 100% ownership of their businesses in the Emirate. It covers 122 different economic activities in the agricultural, industrial and service sectors.
It targets businesses with total capital of between two and 100 million AED or more. The aim is to encourage more investment into the Emirate, diversify the Emirate’s economy and protect investors.
It will benefit foreign investors and UAE residents, including individuals, legal persons and foreign companies who are engaged in Foreign Direct Investment projects. The license can be applied for through the Department’s Business Centre by submitting the application, obtaining the approval after fulfilling all conditions and completing all the required documents and paying the relevant fees.
It covers agricultural sector activities, like the cultivation of grains, leguminous crops, vegetables, fruits and citrus fruits. Other activities which support crop and livestock production and seed processing for reproduction will also be able to get the license. It covers industrial activities like the manufacturing of food and beverages, Food and Beverage, products, clothing and leather production, wood and cork products and the production of plastics and synthetic rubber in its primary forms, fertilisers, pesticides and other agricultural chemical products. It covers service activities like legal consulting; accounting, auditing and tax advisory services; architectural and engineering activities; medical and dental clinics; veterinary activities; computer programming services; consultancy and research and development activities in science and technology.
The Department added certain activities cannot obtain the license without the approval of the UAE’s Cabinet. 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 agent services; insurance activities, medical retailing like private pharmacies; Haj and Umrah services, employment of labour, servants and recruitment of employees, activities related to poison control centres, blood banks and health quarantines and water, electricity and fisheries services are not covered.