In a recent and key development in the landscape of foreign investments in the United Arab Emirates (UAE), the UAE has issued the "positive list" of business activities where 100% foreign ownership is now permitted. This update outlines how it applies to the healthcare sector and its relevant activities.
The positive list of business activities in which foreign direct investment is permitted as provided for in the UAE FDI Law1 has now been issued by the UAE Cabinet of Ministers (the Positive List Resolution)2 and has come into effect. This is a significant development for foreign investors that are interested in investing in, or are already invested in, the healthcare sector in the UAE.
The key business activities in the healthcare sector that are listed in the "positive list" are the following:
- Hospitals activities
- Manufacturing of pharmaceutical materials and chemical and plant pharmaceuticals
- Medical and dentist clinics activities
- Other activities in the field of human health.
We set out below the requirements and conditions in respect of each of these activities:
|
Business activity |
Minimum share capital required (AED) |
Requirements and conditions |
|
Hospitals |
100,000,000 |
|
|
Manufacturing of dental instruments and supplies |
20,000,000 |
|
|
Manufacturing of pharmaceutical materials and,chemical and plant pharmaceuticals |
15,000,000 |
|
|
Medical and dentist clinics |
In accordance with the applicable legislation(s) |
|
|
Other activities in the field of human health |
70,000,000 |
|
The Positive List Resolution also allows the competent licensing authority in each Emirate and industry specific regulators to impose additional conditions and provides that Emiratisation requirements may be imposed by the UAE Ministry of Human Resources and Emiratisation.
Footnotes
1 Federal Decree-Law No. 19 of 2018
2 Cabinet Resolution No. 16 of 2020
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.