The Likely Effect Of The New UAE Law 2008 On Real Estate Investments- By: William King
A foreign investment law is created so that there is a free flow of foreign investment in to the home land. This greatly helps in globalization and also in bringing the ideas of different nations and different productive business techniques in the home land.
According to sources from the ministry of economy, The UAE foreign investment is in its drafting stages and it should be ready by the end of the year 2008. This will enable the global investors to freely invest in UAE.
To accomplish this task, the federal government has set up a committee. This committee consists of members of ministries of economy, finance and industry, and also representatives of over 35 firms including both the public and the private firm.
It is the vision of the prime minister of the economy, Sheikh Lubna Al Quasami to make the emirate a favored foreign investment destination. He is facing problems in the drafting of the law, as the seven countries that constitute the emirate have different laws relating to ownership and investments. But at a national investment forum in last December, he expressed his view of providing a one stop legal reference point for all the investors. He also spoke about likely measures in the law to regulate foreign direct investment in to the country.
Aleef Al farra also expressed a common belief saying that although they did not hope to standardized the law and regulations through out the country, but still there would be certain common grounds so that the foreign investors could invest with certainty. The main motive of this law is to provide transparency and to remove all ambiguities. The reason of ambiguity behind the various laws of the different nations of the emirates, for example on the northern emirates you can get land for free which is not the standard practice through out the UAE.
The aim of foreign investments is not just to have a greater cash flow in to the country but with greater investments, there is an impetus to growth. These investments help to rear new ideas and also give a chance for new companies to come up with innovative products.
Another law that helps the same cause is the UAE competition law. This law is modeled keeping in mind the anti trust law of the United States and also laws of other developed countries. This law helps to keep a check on the companies that create monopolistic trends. These anti competive companies are a great danger to the economy as they take way the opportunity for the small and the medium sized companies to prosper. These monopolistic companies also weigh heavy on the pocket of the consumers. As in the case in the other developed countries, small and medium sized enterprises will be excluded from the purview of this law, as these enterprises are not capable of carrying out a monopolistic business owing to their size.
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