« Back to Glossary IndexForeign Direct Investment (FDI)
Foreign Direct Investment (FDI) refers to investments made by foreign entities in UAE businesses, either through joint ventures, wholly owned subsidiaries, or strategic partnerships. The UAE FDI Law (Federal Decree-Law No. 19 of 2018, amended by Cabinet Resolution No. 16 of 2020) allows 100% foreign ownership in selected sectors on the mainland, eliminating the previous requirement for a local sponsor. Sectors such as technology, manufacturing, renewable energy, and healthcare are actively promoted under the UAE’s FDI strategy. FDI projects are encouraged through tax incentives, business-friendly regulations, and strategic free zones, making the UAE a key global investment hub.
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