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Establishing a new company in Dubai may no longer require a mandatory UAE sponsor if the government approves a recommendation to this effect, which is currently under study, said a top Dubai Chamber official.
Hamad Buamim, Director-General of Dubai Chamber, said the proposal has been with the Executive Council for the past three months. If approved, the new policy may be announced with the revised Company Law this year.
"This is in line with what the business community is expecting," he told Emirates Business. "It would support the business community in attracting more investment. The government is looking into this issue along with the Company Law that is under revision and is expected to be out in 2009."
The Dubai Chamber has also recommended to the Executive Council to change ownership laws, which will pave the way for 100 per cent ownership of businesses outside the free zones.
The privilege is only on a case-by-case basis and would prioritise businesses that are strategic to the economy, according to Khalid Al Kassim, Deputy Director-General of Economic and Sector Development at the Dubai Department of Economic Development.
Dubai Chamber officials feel it is possible to do away with the sponsorship system even at a national level. Dr Belaid Rettab, Senior Executive Director of the Dubai Chamber, said the proposal to "ban" the sponsorship system is possible and feasible for the entire economy, not just Dubai.
"UAE's private sector would like to see an end to the sponsorship system and free entry allowed for all companies without any barriers," he said. "This is possible, and it is expected the government will review this issue."
The chamber has also recommended that the government needs to issue monetary policies to enable banks to provide easier access to funds at lower service charges and interest rates.
"We are already seeing some tangible results, such as the call for the financial sector to ease financing of the business community. The business community has said that finding financing was very difficult in February and March, but now it's easier," Buamim said.
In the real estate sector, the chamber recommended that existing limitations on foreign ownership of properties be removed.
"Rera is doing its best to manage the market but it is has not yet reached the levels where we would like to see it managed," Rettab said. "There are still a lot of unknowns about the visas connected to real estate. Things have to be clarified."
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