100 percent ownership in abu dhabi mainland

Abu Dhabi’s FDI License: Start a Business with 100% Foreign Ownership on Mainland

Setting up a business in the UAE mainland with 100% foreign ownership is now possible as the Abu Dhabi Department of Economic Development (ADDED) has implemented the Foreign Direct Investment License. Foreign investors seeking to start a business setup in Abu Dhabi mainland can apply for the Foreign Direct Investment License through Abu Dhabi Business Centre. The FDI License targets businesses with total capital ranging between AED 2 million to 100 million or higher.

The initiative by ADDED is in line with the Federal Law by Decree No. (19) of 2018 that enable the foreign investors to hold up to 100% shares in their companies if the business activity falls under the positive list of sectors specified in the Law. Business setup consultants in the UAE will guide the investors about the requirements and procedures of obtaining a Foreign Direct Investment License.

Steps for Licensing an FDI Project in the List

To obtain an FDI license in Abu Dhabi, a foreign investor needs to apply for approval of the project license to the ADDED. Given the investor has met all the conditions and requirements ADDED will issue the license within a matter of a few days.

  1. Select a Business Activity
  2. Reserve a Trade Name & get ADDED Initial Approval
  3. Submit the FDI License Application to ADDED
  4. Get External Approvals based on the nature of the activity
  5. Receive FDI License after paying the fee
  6. Open the bank account on behalf of the company

Major Activities Included in the Positive List

1. Agriculture Sector

The FDI License for the Agriculture sector covers activities including cultivation of grains, leguminous crops, vegetables, fruits, citrus fruits, among others. Apart from that, the license also covers activities that support crop and livestock production, seed processing for reproduction etc.

2. Industrial Sector

The major industrial activities that come under the industrial license include manufacturing of food and beverages, F&B, products, clothing and leather production, wood and cork products etc. Further, activities such as the production of plastics and synthetic rubber in its primary forms, fertilizers, pesticides, and other agricultural chemical products etc. are also covered under the industrial sector.

3. Services Sector

The list of service sector activities that can be carried out under the FDI license includes legal consulting; accounting, auditing and tax advisory services; architectural and engineering activities etc. Apart from that other activities permitted under the FDI license include medical and dental clinics; veterinary activities; computer programming services; consultancy, research and development activities in science and technology etc.

List of Activities Not Covered by the FDI License

The Federal Law by Decree No. (19) of 2018 specifies a Negative List of activities that are outside the scope of the FDI License. Foreign investors are not permitted to set up a business in Abu Dhabi, UAE in such activities. The activities are:

  1. Exploration and production of petroleum materials
  2. Investigations, security, military sectors, manufacturing of arms, explosives & military equipment, devices and clothing
  3. Banking and financing activities, payment systems and dealing with cash
  4. Insurance services
  5. Hajj & Umrah Services, providing employment and recruitment services for staff & servants
  6. Water and electricity services
  7. Services related to fisheries
  8. Postal services, telecommunications services and audio and video services
  9. Land and air transport services
  10. Printing and publishing services
  11. Commercial agents’ services
  12. Medical retail such as private pharmacies
  13. Blood banks, venom and quarantine centres

The government may over time review the activities mentioned in the list and may remove or add activities mentioned in the Negative List. Foreign investors need to have an in-depth understanding of the permitted activities for which the help of business setup consultants in the UAE can be availed.

Grounds for Refusal of FDI License Project

According to Federal Law by Decree No. (19) of 2018, the ADDED or the Government can reject the FDI project in whole or part in the following cases:

  1. A threat to national security or peace
  2. Activities that negatively impact a strategic sector in the UAE
  3. Influence on public health or morals and the values of society
  4. Impact on the defence sector
  5. Influencing the foreign policy of the State

Get FDI License with the Help of Business Setup Consultants in the UAE

Abu Dhabi Department of Economic Development has implemented the Foreign Direct Investment Law, which will enable investors to hold 100% ownership of their businesses in Abu Dhabi. The license covers 122 different economic activities related to the agricultural, industrial and services sectors. With the FDI License, the foreign investors can do away with the requirements of Local Sponsorship and enjoy total ownership of the mainland company. However, the foreign investors may require sound knowledge about the regulations and requirements that govern the FDI license for which business setup consultants in the UAE such as Jitendra Business Consultants (JBC) can assist. JBC has a team of highly qualified business setup consultants who will guide the investors through all the steps of business setup in the UAE.

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