{"id":4342,"date":"2020-12-12T20:44:43","date_gmt":"2020-12-12T20:44:43","guid":{"rendered":"http:\/\/baileyonlineclassroom.com\/middleeastandnorthafricablog\/?p=4342"},"modified":"2020-12-12T20:44:43","modified_gmt":"2020-12-12T20:44:43","slug":"uae-allows-full-foreign-ownership-of-firms-to-boost-economy","status":"publish","type":"post","link":"https:\/\/baileyonlineclassroom.com\/middleeastandnorthafricablog\/2020\/12\/12\/uae-allows-full-foreign-ownership-of-firms-to-boost-economy\/","title":{"rendered":"UAE Allows Full Foreign Ownership of Firms to Boost Economy"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Link to article: <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2020-11-23\/uae-abolishes-requirement-for-local-partners-in-firms-national\">https:\/\/www.bloomberg.com\/news\/articles\/2020-11-23\/uae-abolishes-requirement-for-local-partners-in-firms-national<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Companies operating in the United Arab Emirates are no longer required to have UAE shareholders. The new business regulations will come into effect on December 1st.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The previous regulations required companies to give at least 51% of ownership to locals to continue their business in the country, as well as for the board of directors positions to be held mostly by Emiratis.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">About 81% of UAE\u2019s population is comprised of foreigners, but many have been forced to leave the country after losing their jobs to recession-driven lay-offs. At the beginning of the coronavirus recession, it was estimated that the population of the UAE would shrink 10%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The decision was made to draw more businesses to operate in the UAE. An increase in business would stimulate their economy, which is currently experiencing a recession as a result of Covid-19.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The United Arab Emirates is a member state of OPEC, an IGO responsible for setting oil quotas in an attempt to control oil market prices through controlling the supply chain. Daily quotas were lowered after it became apparent that demand for oil was decreasing during the pandemic shut-down. This, among other circumstances, has sent the UAE economy into a recession.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Many consider Dubai one of the best cities to conduct business in. With these more relaxed regulations, it is likely that an influx of foreign companies will grow their business to operate on UAE soil. Companies experiencing this new freedom are likely to innovate or expand their business, creating the positive effects for the UAE economy that are hoped for. Although, this large shift has the potential to overtake local culture, especially now that the new additions will not be required to connect with the locals.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Without the requirement for local business partners, the UAE is creating incentives for businesses to move away from other countries in favor of itself. It is unclear whether other countries will resent the UAE for taking business investment away from their own shores, but it is a possibility. However, the UAE is prioritizing its own economy over the economies of other countries, supporting the realist international theory.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Link to article: https:\/\/www.bloomberg.com\/news\/articles\/2020-11-23\/uae-abolishes-requirement-for-local-partners-in-firms-national Companies operating in the United Arab Emirates are no longer required to have UAE shareholders. The new business regulations will come into effect on December 1st. The previous regulations required companies to give at least 51% of ownership to locals to continue their business in the country, as well as for the board of directors positions&#8230; <a href=\"https:\/\/baileyonlineclassroom.com\/middleeastandnorthafricablog\/2020\/12\/12\/uae-allows-full-foreign-ownership-of-firms-to-boost-economy\/\">Read more &raquo;<\/a><\/p>\n","protected":false},"author":159,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4342","post","type-post","status-publish","format-standard","hentry","category-article"],"_links":{"self":[{"href":"https:\/\/baileyonlineclassroom.com\/middleeastandnorthafricablog\/wp-json\/wp\/v2\/posts\/4342","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/baileyonlineclassroom.com\/middleeastandnorthafricablog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/baileyonlineclassroom.com\/middleeastandnorthafricablog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/baileyonlineclassroom.com\/middleeastandnorthafricablog\/wp-json\/wp\/v2\/users\/159"}],"replies":[{"embeddable":true,"href":"https:\/\/baileyonlineclassroom.com\/middleeastandnorthafricablog\/wp-json\/wp\/v2\/comments?post=4342"}],"version-history":[{"count":2,"href":"https:\/\/baileyonlineclassroom.com\/middleeastandnorthafricablog\/wp-json\/wp\/v2\/posts\/4342\/revisions"}],"predecessor-version":[{"id":4344,"href":"https:\/\/baileyonlineclassroom.com\/middleeastandnorthafricablog\/wp-json\/wp\/v2\/posts\/4342\/revisions\/4344"}],"wp:attachment":[{"href":"https:\/\/baileyonlineclassroom.com\/middleeastandnorthafricablog\/wp-json\/wp\/v2\/media?parent=4342"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/baileyonlineclassroom.com\/middleeastandnorthafricablog\/wp-json\/wp\/v2\/categories?post=4342"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/baileyonlineclassroom.com\/middleeastandnorthafricablog\/wp-json\/wp\/v2\/tags?post=4342"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}