Monday, 5 December 2011 at 08:09, Reuters, Abnu Dhabi
UAE has been trying to diversify &modernise its economy, developing areas including tourism, finance and aerospace. (REUTERS)
The United Arab Emirates cabinet has approved a draft companies law that will make it easier to set up businesses and strengthen the protection of shareholders, state news agency WAM reported on Sunday.
The legislation lays down a framework for the governance of public companies, ensuring transparency and disclosure of financial data as well as the efficiency and integrity of the board of directors, WAM said.
It did not say when the legislation was expected to take effect.
There has been speculation the law might ease limits on foreign ownership in some sectors. Currently, there is a maximum 49 per cent ownership limit for listed companies and foreigners need a UAE national or partner to conduct business, although full foreign ownership is permitted in "free zones".
The UAE has been trying to diversify and modernise its economy, developing areas including tourism, finance and aerospace, to reduce its heavy dependence on oil exports.
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