UAE Transforming Into An Official Offshore
UAE Wants To Allow Full Access To Foreign Investors
United Arab Emirates (UAE) plans to allow in financial sector reform being finalized, access to their territory of foreign entrepreneurs, who will have control over your business commitments. Conditions generated by the global crisis, which has collapsed, virtually, banking and construction industry in this region, required the adoption of the measures designed to bring back investors in the area.
The current legislation limits the control of foreign businessmen from 49% in business, the rest being held by Arab partners, but which has no claim on his property, content with the money obtained from the business. The financial crisis has created serious problems for UAE economy.
They have lost billions of dollars and many buildings were frozen amid the expensive housing market crash – prices fell by almost 50%. There is therefore no wonder that the UAE authorities decided to transfer much of the business under the control of foreign investors.
“UAE launches a comprehensive action program to remove the existing shortcomings in the regulatory and legislative, on our financial system. Although we expect a rapid recovery in the pace of economic growth in recent years, have eliminated the risks and challenges brought to the surface of the economic crisis, “said recently, manager of the Dubai Financial Centre (DIFC).
A context that compels concrete measures
Among other things, the company obtained from its creditors, including Credit Suisse Group AG, HSBC Holding Plc., Barclays Plc., Lloyds Banking Group Plc. and Royal Bank of Scotland Group Plc., the restructuring of a debt worth $ 23.5 billion . Thus, $ 14.4 billion will be paid in two installments – $ 4.4 billion over the next five years, another $ 10 billion within eight years. The remaining $ 8.9 billion will be paid through the redemption of shares. On the other hand, economic sanctions against Iran were placed in difficulty offshore structures in Dubai. Being among the top trading partners of the republic in all spheres of economic, re emirate by Tehran for almost 80% of products purchased. The UN sanctions cannot be ignored, including the fact that Abu-Dhabi, the emirate neighboring Dubai, which has granted financial aid to $ 20 billion, is in favor of the strict observance of these international measures. In addition, UAE represents one of the major buyers of U.S. weapons in the Persian Gulf – in the last two years, the value of contracts in this area reached $ 17 billion. Experts say that new approaches advocated by UAE authorities is “a clear signal about its openness to investment.”
