Gulf states are moving beyond the traditional 49%-ownership limit for foreign investors, as they look to diversify their economies in the face of a possible post-oil future. Foreign direct investment inflows to the region were just $15bn in 2017, a 13-year low, but are likely to increase in the coming years. Qatar, UAE and Oman all have new laws pending that permit 100% onshore foreign ownership. However, the devil will be in the detail, including which sectors are covered and the process of securing an investment licence. Kuwait, Saudi and Bahrain already have more open foreign investment environments and are making incremental improvements. PDF report available here: 20180722 – MENA Advisors – Gulf states to ease foreign investment restrictions GCC governments have traditionally placed substantial restrictions on foreign investment to create advantages for local firms. This is changing rapidly as even some of the most traditionally restrictive states seem to be competing to lower barriers and attract investors. However, significant questions remain about the details of the new regimes and likely impact of the planned reforms. The 49% ceiling Foreign investors have typically been limited to a maximum stake of 49% in local companies, often with even stricter restrictions on listed firms and the hydrocarbons sector. Although old investment laws sometimes permitted greater ownership stakes in certain sectors, usually on a case-by-case basis, these provisions have rarely been implemented. The main exception has been in free zones, such as Jebel Ali in Dubai and the Qatar Financial Centre, which have attracted……...
