The Abu Dhabi Economic Vision 2030
Foreign Direct Investment
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FDI can be beneficial for the economy as a whole, as it brings with it know-how and expertise that can
trigger further economic growth. Additional work will be done to improve the investment facilitation
process, by developing one-stop shops.
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Abu Dhabi is looking to attract more strategic FDI, to encourage export-orientated industries and
improve the know-how and competitiveness of the Emirate.
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The Government is committed to the ongoing evaluation of its legislation, legal systems and government
processes to ensure the Emirate is an attractive investment destination.
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Abu Dhabi aspires to rival rankings enjoyed by benchmark economies such as Ireland, Norway, New
Zealand and Singapore on the global indices scale for economic freedom and ease of doing business.
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A simple and transparent tax structure is one of the Emirate’s major advantages when it comes to
attracting foreign investment.
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Aspects of Abu Dhabi’s legal system will also be enhanced and strengthened to optimise business
opportunities.
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The UAE Government levies no corporate or income tax and, at 1.7% of GDP, tax payment rates are
among the lowest in the world.
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Outside of free zones, limits in Abu Dhabi are similar to those of its GCC partners. Foreign ownership of
companies in the UAE is capped at 49%, with few exceptions. This policy has been relatively successful,
creating a generation of local shareholders and business-owners.
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The level of foreign ownership remains low within the Emirate, thus indicating an opportunity to boo st
FDI and speed-up the roll-out of leading edge technologies, business processes and management practices
to the rest of the economy.
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For now, however, free zones, which enjoy some exemptions and flexibility related to foreign ownership
rights, are the primary tools to encourage FDI. Foreign nationals are now permitted to own real estate in
the Emirate within specially designated zones - a measure to improve the attractiveness of the Emirate as
an investment destination.
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A more contemporary corporate governance framework will also be considered in order to boost investor
confidence in Abu Dhabi. The Federal Commercial Companies Law provides some guidelines for
corporate governance provisions and minority shareholder rights. Legal reforms in this area will help to
bolster higher standards and investor confidence within the business community.
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