The U.A.E. Government has been revamping the entire commercial legislation. Beginning with the comprehensive amendment to the agencies law, it is now easier for foreign principles to terminate agencies or re-negotiate their terms. This was virtually impossible before the amendment took place. It is believed that this amendment will bring more competition by reducing or limiting monopolistic practices.
Dubai has issued the much discussed property law whereby foreigners are now allowed to buy and register properties in their name in certain designated areas. With the opening up of the property sector three years go Dubai has witnessed unprecedented growth in the real estate sector. In the absence of registration of these properties in their name, buyers were not fully assured about the ownership of their properties or their ability to raise debts or obtain mortgage thereon. This legislation will go a long way in the development of the real estate sector in the U.A.E.
The UAE has now signed and joined the New York Convention on the recognition and enforcement of Foreign Arbitral Awards. In its absence, it was difficult to implement foreign arbitration awards in the UAE and the entire process was lengthy, expensive and uncertain. It is believed that this is a significant step and will assure foreign corporations that dealing with UAE entities will be within the international legal framework.
There is a mooted change in the Federal Insurance Law whereby foreigners may be able to acquire up to a 25% stake in insurance companies. Historically, the insurance sector has been restricted to only nationals. With the growth the UAE is witnessing and the need for foreign capital and expertise, this amendment, should it go through, will give a boost to the development of the insurance sector in the UAE.
The new Commercial Companies law is still awaited and, if the indications are true that it will allow majority foreign ownership of companies, there will undoubtedly be increased interest in the UAE from foreign investors.
There are other usual columns, updates on happenings in the UAE, PKF International and the offshore world and I do hope you will enjoy reading our newsletter. Please feel free to write update@pkfuae.com if you would like to express an opinion on any matter inside.
M.A. RAFIK
