100% Direct Foreign Investment in Abu Dhabi! What is the new FDI license and how to apply?

By Diana Youssef


There is no doubt that investing in Abu Dhabi, the United Arab Emirates’ capital, is straightforward and is encouraged by a business-friendly legal, regulatory, and financial environment. As one of the world’s freest economies, Abu Dhabi is a stable, investor-friendly global hub, starting with its investment attraction strategy by establishing the award-winning International Financial Centre, Abu Dhabi Global Market (“ADGM”). Under the leadership of Dhaher bin Dhaher Al Mheiri - CEO ADGM Registration Authority; Richard Teng - CEO ADGM Financial Services Regulatory Authority; and Linda Fitz-Alan - Registrar and Chief Executive of ADGM Courts, and their remarkable work that helped promote the ADGM to become today one of the largest and most attractive financial centers in the region and globally.

Last week, the emirates of Abu Dhabi announced the issuance of Foreign Direct Investment’ FDI’ licenses, a game-changing initiative allowing foreign investors to hold 100% ownership of their business within the emirate.

So, what do we know about the FDI licenses?

According to The Abu Dhabi Department of Economic Development (ADDED):

1. The FDI license targets businesses with capital ranging from Dh2 million to Dh100 million or even higher.
2. It will cover 122 different economic activities related to the agricultural, industrial, and services sectors.
3. The issuance of the FDI license is in line with Federal Law No (19) of 2018 regarding Foreign Direct Investment. It is part of the department’s efforts to further promote a favorable investment climate.

Mohammed Ali Al Shorafa, Chairman of The Abu Dhabi Department of Economic Development, said the chamber is committed to strengthening the local investment environment and encouraging the Abu Dhabi economy’s competitiveness through policies that contribute more investment opportunities to various non-oil sectors.

What is the FDI Negative List?

1. Under the FDI Law, foreign investment above 49% will not be allowed in sectors that appear on a “negative list.” The UAE Cabinet has the discretion to modify the “negative list” by adding or eliminating sectors.
2. There are currently 13 sectors specified in the “negative list,” including banking, insurance, and commercial agencies.

Who are the beneficiaries of the FDI license?

The beneficiaries are foreign investors and UAE residents, including individuals, legal persons, and foreign companies engaged in FDI projects.

Interested in obtaining an FDI License?

Talk to one of our experts today at info@complyee.com.

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