President His Highness Sheikh Khalifa Bin Zayed Al Nahyan has issued a decree overhauling foreign ownership rules of commercial companies, as part of the government’s ongoing efforts to ensure a conducive legislative environment and open up the economy to all nationalities.
The decree, which introduces significant amendments to the UAE Federal Law No. 2 of 2015 on Commercial Companies, annuls the requirement for commercial companies to have a major Emirati shareholder or agent, providing full foreign ownership of onshore companies. Under the new amendments, businesses can now be fully established by non-Emiratis of all nationalities, with companies now having a maximum of one year to comply with the amended law from the time its articles become effective.
This can be extended under a decision by the cabinet as proposed by the Minister of Economy.
The decree, in addition, supersedes the UAE Federal Law No. 19 of 2018 on Foreign Direct Investment (FDI Law). It also includes certain provisions and regulations related to limited liability and joint-stock companies aimed at attracting foreign capital and further boosting the local economy.
The decree grants relevant local authorities a set of powers, including setting a specific percentage of Emiratis in the capital allocation and boards of directors of companies, approving requests to establish companies -except for joint-stock companies- and identifying fees & charges according to the policies adopted by the UAE Cabinet.
Significant changes include that firms wishing to become joint-stock companies can, after the approval of relevant authorities, sell no more than 70% of the company, instead of the current 30%, through IPOs.
The decree authorizes the cabinet to set up a committee that includes representatives of the relevant authorities with a view to proposing activities of “strategic impact” and the measures required to licence companies that operate in such areas. Upon the recommendation of the committee, the Cabinet will stipulate what activities shall be considered of strategic impact and the required measures for licensing such companies.
Electronic voting at general assembly meetings is now permitted under the new amendments.
The decree empowers the Securities and Commodities Authority to establish the controls and procedures required for evaluating in-kind shares and the names of stakeholders attending the general assembly meetings of companies. It also allows the appointment of board members who have the expertise and are not stakeholders, without stipulating a specific percentage, as well as the dismissal of a chairman or any other board members if a judicial judgment is issued against them for committing fraud or misuse of power.
The decree enables stakeholders to sue a company in civil court over any failure of duty that results in damages.
Concerning capital increases or decreases in public companies, the decree enables the company to approve its capital increase through issuing bonds and converting them into shares.
The decree is reflective of the UAE’s forward-looking vision to open up its economy by creating a favourable legislative environment that will keep pace with the changes taking place across the global economy and supporting companies operating in the country.
Muhammad Iqbal Dawood, President Pakistan Business Council Dubai told Gulf Today that the UAE’s decision to allow 100% foreign ownership of companies would add more flavor to the country’s economic growth, adding that this great move would further boost investor confidence in the UAE and will attract more investors.
Rizwan Sajan, Founder, and Chairman Danube Group said: “Thanks to the visionary leaders of the UAE that the economic status is getting more and more favourable every day for the people to invest in the region. “
He further added: “However UAE has become a hub for investment, where most of the organizations are taking advantage of business opportunities to the fullest. These timely decisions make the country a desired destination for starting and growing business in the local and global markets. Wish the nation achieves greater heights in the coming year.”
Chandra Dake, CEO, Dake Rechsand, said: We welcome this great move of allowing 100% ownership of businesses for foreign nationals, in the UAE.
Nigeria Lacks Space To Store Pfizer’s COVID-19 Vaccine —- NIMR
The Nigerian Institute of Medical Research says there is not enough space at the moment to store the COVID-19 Pfizer vaccines which are expected to arrive next week.
The Director-General of NIMR, Prof. Babatunde Salako, said this during an interview with The PUNCH on Saturday.
Salako revealed that Nigeria had freezers in different parts of the country to store the Pfizer vaccines at -70 degrees centigrade.
He, however, said most of these freezers were occupied and were storing medical supplies which also need to be stored at a low temperature.
Responding to a question, Salako said, “Our facilities can hold Pfizer vaccines at -70 degrees but we don’t have enough of such freezers, and the ones we have are even full at the moment. We even just got one that we have yet to install but how many samples can it even hold?
“Even if we rearrange things, I doubt if we can store more than a few hundred or thousands.”
When asked if other facilities besides NIMR could hold such vaccines, he said, “There are many -80 freezers around in the research institutes and universities but the point is that many of them have samples inside them. So, even if we evacuate, I don’t think we will all be able to do more than a few thousands.”
Salako said storage was the minor problem, adding that the major challenge would be how to transport the vaccines at the temperature of -70 to rural areas.
The NIMR boss argued that in the future, Nigeria may need to buy other brands that do not require such low temperatures like Pfizer.
Salako noted that other brands like Oxford/AstraZeneca could be stored at normal freezer temperature while the Russian vaccine could also be stored at a temperature not as low as Pfizer.
He said, “The problem is not just about storing vaccines but moving it to the rural areas and maintaining that same temperature. For example, if you land in Lagos and you store it at -70 and it has to be transported over the creek somewhere, how do you move them? There are other ways but they will be very costly. They can store them with liquid nitrogen or even dry ice but it will cost a lot of money.
“AstraZeneca would have been better because it would stay at normal freeze temperature and I think even Russian vaccines can be stored at the same temperature but I think the government is going with Pfizer because the World Health Organisation has given it an emergency approval.
“But I think all the vaccines are now being deployed in many countries. So, we can do all of them rather than do just one considering the storage capacity for Pfizer. Even the government knows that we don’t have enough space but we can be taken in batches.”
Only God Can Give Victory Over Insecurity —– Femi Adesina
The Special Adviser to the President on Media and Publicity, Femi Adesina, says Nigerians who fail to commit the security situation into the hands of God could be guilty of indirectly prolonging the war against insurgency.
Adesina said this in an article on Thursday titled, ‘The Decent for the Indecent, the Just for the Unjust’.
The President’s aide noted that a short viral video showed a soldier and four others singing that victory is from God alone.
Adesina, however, said many Nigerians had failed to understand that only God gives victory.
He wrote, “But victory is from God alone. That is what we must realize as Nigerians. Do we ever pray for our troops in the frontlines? Do we remember those youths, our pride, and strength, faced by death daily, as we sleep in the comfort of our homes, ensconced in the tender bosom of our wives?
“As we pray; God give me money. Give me a car. Give me a promotion. Kill my enemies. Do it now. Do we ever remember our soldiers? Ere you left your room this morning, did you think to pray…did you pray for our soldiers? Victory comes from God alone. If you don’t pray, you may be guilty of prolonging the war in North-East, North-west, North-central, and all over Nigeria.”
The President’s spokesman said rather than understand the fact that only God can give victory, some Nigerians had become wailers.
“Yes, victory is from God alone. But do some people know? Does it ever enter into their consciousness? They only wail: ‘this insurgency war has lasted too long. The banditry has demystified our military. They are cowards. The top guns don’t even want the battle to end.
“They are making money in billions.’ Okay. Making money in billions and wasting our soldiers, our youths, our future, and hope, in their hundreds and thousands because of blood money. That is all some people see; permanent cynics and sceptics, who know nothing of altruism, and whose God is their belly. They think only of pecuniary gain, nothing else,” Adesina said.
He said as the nation marks this year’s Armed Forces Remembrance Day, Nigerians should seize the opportunity to pray for the military and encourage them and not run them down.
JUST IN: Lagos Okays School Reopening January 18
The Lagos State Government has affirmed its earlier pronouncement that all public and private schools in Lagos State below tertiary level should resume on Monday, January 18, 2021, for the second term 2020/2021 academic session.
This affirmation was made today by the Honourable Commissioner for Education, Mrs Folasade Adefisayo while noting that this is in line with the Federal Government’s resolution after reaching a consensus with relevant stakeholders.