Abu Dhabi plans to introduce legislation allowing 100 per cent foreign ownership

Nicosia, June 24 : Abu Dhabi, which has been quite successful in attracting foreign investment, is preparing a new law which would allow foreign investors to own up to 100 per cent in various economic sectors to spur the emirate's economic boom.

The Abu Dhabi Planning and Economic Department in its weekly report earlier this month stresses that there was a need to amend existing laws in order to attract foreign investment and create a more favourable environment. According to Abu Dhabi planners, the revised law would increase foreign ownership in some activities in the emirate up to 100 per cent, instead of the current maximum, which is 49 per cent.

The influx of foreign investment is expected to help diversify the local economy and attract new technology.

Foreign direct investment in Abu Dhabi in 2007 rose to 4.85 billion dollars, compared to 4.38 billion dollars in 2006. When the new law is approved it is expected to give a strong boost to Abu Dhabi's economy.

The World Bank has identified the UAE's legal requirements for a local partner as an impediment to higher levels of investment.

ANI