The government of the United Arab Emirates (UAE) is set to confirm that the defence industry will be excluded from a list of sectors open for 100% foreign direct investment (FDI).
Federal Law No. 19 of 2018 is expected to come into effect by 30 July 2019, after the UAE Federal Cabinet approved it on 2 July.
The FDI law relaxes the previous legal requirement for majority UAE ownership of commercial companies in the country. The new law opens 122 types of business in 13 sectors to full foreign ownership (as is already the case in designated free trade zones), but it stipulates that "investigation, security, military sectors, manufacturing of weapons, explosives and military equipment, devices, and uniforms" will remain subject to the earlier legislation.
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