This article is a two-part article concerning the foreign ownership restriction (the Ownership Restriction) which is currently in force in the United Arab Emirates (the UAE) and recent announcements from the Cabinet of Ministers in the UAE (the UAE Cabinet) to amend such restriction. The second part to this article will be issued following further expected announcements from the UAE Cabinet.

THE UAE CABINET RESOLUTION -

On May 20, 2018, the UAE Cabinet issued a resolution effecting a substantial change to the Ownership Restriction, which currently prevents foreign nationals or companies from owning more than 49% of an onshore business operating in the UAE. The proposed change will potentially allow foreign nationals or companies to own up to 100% of a business operating in the UAE, without the need for a local Emirati co-investor.