THE WHAT? The United Arab Emirates has scrapped a rule that required corporations working within the nation to have Emirate shareholders, in response to an article printed by Bloomberg citing reviews in native press.
THE DETAILS The amended 2015 industrial corporations regulation, which got here into drive yesterday, will now not require corporations to be chaired by an Emirati nationwide or for the board to be majority Emirati. Nevertheless, native authorities can set particular targets for Emiratis in capital allocation and boards.
“This was all the time a delicate subject given the simple ‘rents’ derived by locals for his or her passports,” Tarek Fadlallah, CEO of Nomura Asset Administration’s Center Japanese division advised Bloomberg. “Passing it’s probably a giant second.”
THE WHY? The measure is designed to draw overseas traders and diversify the Gulf financial system amid the downturn brought on by COVID-19’s catastrophic impact on oil costs.