Full foreign ownership of UAE companies to spur regional HQ race

Full foreign ownership of UAE companies to spur regional HQ race
A UAE flag flies over a boat at Dubai Marina. in the UAE where foreigners starting a company will no longer need an Emirati shareholder. (Reuters)
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Updated 20 May 2021

Full foreign ownership of UAE companies to spur regional HQ race

Full foreign ownership of UAE companies to spur regional HQ race
  • The companies law change comes into effect from June 1


DUBAI: The UAE will allow foreigners to start a company without an Emirati shareholder from next month as the regional race to attract investment heats up.
The change, which comes into effect from June 1, could also spur demand for commercial and residential property, said brokers.
“The amended Commercial Companies Law aims at boosting the country’s competitive edge and is a part of UAE government efforts to facilitate doing business,” said Minister of Economy Abdulla bin Touq Al-Marri, in a statement carried on the UAE’s official WAM news agency.
Previously companies needed either to have an Emirati shareholder or be based in a dedicated business park known as a free zone.
The announcement comes as Gulf governments ramp up efforts to attract foreign investors. Saudi Arabia said earlier this year it would stop signing contracts with foreign companies from 2024 unless their regional headquarters were based in the Kingdom. Neighboring UAE has also announced a number of other incentives to encourage firms to establish bases in the country.
It was not immediately clear how the UAE’s many major free zones will now seek to attract new tenants, however some are already shifting focus.
The Dubai Airport Free Zone Authority (DAFZA) said on Wednesday that companies trading with crypto assets could now obtain a business license in a new agreement that supports the mainstream use of blockchain technology. The free zone agreed with the Securities and Commodities Authority (SCA) to allow the regulation, offering, issuance, listing and trading of crypto assets within DAFZA.
Analysts said the move could help to spur demand for commercial and residential homes as business owners set up shop in the emirate.
“The federal and local governments across the UAE continue to unveil key policy initiatives that will be crucial in helping to create future demand for residential and commercial property across the country,” said Faisal Durrani, head of regional research at Knight Frank. “With this landmark change, the UAE has unlocked its potential to emerge as a key global contender (for) business headquarters, which were previously confined to free zones across the country. At the smaller end of the business spectrum, fresh initiatives such as ‘Dubai Next’ will certainly help to position cities such as Dubai as an attractive option for global startups looking for a dynamic launch location”.

 


EV Metals partners with Yanbu Royal commission to build $900m battery chemicals complex

EV Metals partners with Yanbu Royal commission to build $900m battery chemicals complex
Updated 28 September 2021

EV Metals partners with Yanbu Royal commission to build $900m battery chemicals complex

EV Metals partners with Yanbu Royal commission to build $900m battery chemicals complex

RIYADH: The Royal Commission in Yanbu on Wednesday signed a $900 million investment agreement with EV Metals to establish and operate a factory for the production of electric battery chemicals.

The facility will be spread over 127 hectares and the investment volume is approximately SR3,375 million. The project is expected to create 494 jobs.


OPEC's Barkindo expects oil demand to continue upward pace beyond 2021

OPEC's Barkindo expects oil demand to continue upward pace beyond 2021
Updated 29 min 58 sec ago

OPEC's Barkindo expects oil demand to continue upward pace beyond 2021

OPEC's Barkindo expects oil demand to continue upward pace beyond 2021

RIYADH: The secretary-general of the Organization of the Petroleum Exporting Countries, Mohammed Barkindo, is bullish on oil recovery and sees demand to pick up over the next few years.

“Energy and oil demand have picked up significantly in 2021, after the massive drop in 2020, and continued expansion is forecast for the longer-term,” Barkindo wrote today in the group’s World Oil Outlook.

“Non-OPEC liquids supply is projected to rise from 62.9 mb/d in 2020 to 70.4 mb/d in 2026, the key contributors to growth are the US, Brazil, Russia, Guyana, Canada, Kazakhstan, Norway and Qatar,” OPEC’s chief said in a virtual press conference.

Non-OPEC liquids output is set to decline from a peak of 71 mb/d around 2030 to 65.5 mb/d in 2045.

The WOO report says that more electric vehicles on the road for alternative energy will decline the demand for oil in rich countries.

Internal combustion engine vehicles are set to retain the largest market share at over 76 percent by 2045. Oil demand in the transportation sector is expected to stay around 46 mb/d after 2025.

Indian Minister of Petroleum and Natural Gas Shri Puri said: “OPEC should move toward reliable pricing globally as cost of prices plays a crucial role in global interest.” 

Dr. Ayed Al-Qahtani, director of research at OPEC, said that short-term investment is of paramount importance to prevent a potential hike in prices.

Brent oil dipped on Tuesday after topping $80 per barrel for the first time in nearly three years, as a five-day rally ran out of steam with investors locking in profits.

Oil benchmark prices have been on a tear, with fuel demand growing and traders expecting major oil-producing nations will decide to keep supplies tight when OPEC meets next week.

Brent dipped 75 cents, or 0.9 percent, to $78.78 a barrel at 12:37 a.m. EDT (1637 GMT), after reaching its highest level since October 2018 at $80.75.

US West Texas Intermediate crude fell 60 cents, or 0.8 percent, to $74.85 a barrel, after hitting a session high of $76.67, highest since July.


Ma'aden adds four new vessels to its fleet to ship ammonia

Ma'aden adds four new vessels to its fleet to ship ammonia
Updated 28 September 2021

Ma'aden adds four new vessels to its fleet to ship ammonia

Ma'aden adds four new vessels to its fleet to ship ammonia

RIYADH: Saudi Arabian Mining Company (Ma’aden), has signed agreements with Thenamaris LNG Inc. and Exmar Marine NV to hire a total of four vessels to transport ammonia produced by the company.


Saudi Tourism Development Fund signs financing agreements to develop Jeddah projects

Saudi Tourism Development Fund signs financing agreements to develop Jeddah projects
Updated 28 September 2021

Saudi Tourism Development Fund signs financing agreements to develop Jeddah projects

Saudi Tourism Development Fund signs financing agreements to develop Jeddah projects

RIYADH: Saudi Arabia's Tourism Development Fund (TDF) signed two financing agreements with Dallah Al-Baraka Group and Dallah Real Estate Company, to develop a tourism project at the Durrat Al-Arous resort in Jeddah, accordign to an emailed statement.

Saudi Arabia’s Tourism Development Fund signed two financing agreements with Dallah Al-Baraka Group and Dallah Real Estate Company, to develop a tourism project at the Durrat Al-Arous resort in Jeddah, accordign to an emailed statement.

Under the deal, the tourism fund provide funds for the development of “Durrat Lagoon,” which will be operated by Hotel Indigo.

“The financing and support services provided by the Tourism Development Fund contribute significantly to enhancing the experiences of investors and the value of their projects, as well as boosting the Kingdom’s ability to attract tourists from around the world,” Mohiuddin Saleh Kamel, vice chairman of Dallah Al-Baraka Group, said.

The second agreement was signed with 17Sixty to provide a variety of recreational activities enabling visitors of Durrat Al-Arous resort to safely explore the depths of the Red Sea.

“TDF is focused on providing innovative solutions that link investors to the abundant opportunities in the Saudi tourism sector, contributing to achieving the objectives of the National Tourism Strategy and consolidating the Kingdom’s position as a tourist destination that attracts visitors from all over the world,” the fund’s CEO, Qusai Al-Fakhri, said.


Saudi net foreign assets fall to $437bn in August, central bank data shows

Saudi net foreign assets fall to $437bn in August, central bank data shows
Updated 28 September 2021

Saudi net foreign assets fall to $437bn in August, central bank data shows

Saudi net foreign assets fall to $437bn in August, central bank data shows

Saudi Arabia’s net foreign assets dropped over 0.1 percent in August, according to newly-released figures.

Data from the Saudi Central Bank (SAMA) showed the assets, which measures its ability to support its dollar-pegged assets, falling to 1.64 trillion riyals in August from the month before.

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