UNITED ARAB EMIRATES Law and Practice Contributed by: Yasser Omar and Laryssa Perkins, Hadef & Partners LLC
7. Foreign Investment/National Security 7.1 Applicable Regulator and Process Overview There is generally no requirement for FDI into the UAE to be reviewed or approved by a UAE regulatory authority. Instead, disclosure of FDI occurs primarily through company registration and licensing, ultimate beneficial ownership reporting, ongoing financial and compliance filings, and specific rules for certain sec - tors and publicly listed companies. 7.2 Criteria for National Security Review See 6. Antitrust/Competition and 11.1 Intellectual Property Considerations for Approval of FDI for more information on the competition legal framework in the UAE. 7.3 Remedies and Commitments See 6. Antitrust/Competition for more information on the competition legal framework in the UAE. 7.4 National Security Review Enforcement See 6. Antitrust/Competition for more information on the competition legal framework in the UAE.
to enforce the decision, which may include the ability for the Ministry to prohibit or otherwise interfere with a transaction within its competency to combat any form of activities or practices in breach of the provisions of the Competition Law. Under Article 14 of the existing implementing regula - tions, any concerned party can request the Minister to review its decision within 14 days from the date the applicant becomes aware of the decision. The Competition Regulatory Committee will review the request and submit its recommendation to the Minis - ter within ten days from the date on which the request was referred. The Minister is to adopt a final decision within 30 days from the filing of the request. If a deci - sion is not adopted within this timeframe, the request is deemed to be rejected. Decisions issued by the Minister can be appealed before the competent court (following the procedures set out in Article 34 of the Competition Law). Under Articles 25 and 26 of the Competition Law, any person who fails to notify a reportable economic con - centration transaction may be fined between 2% and 10% of the annual total sales achieved by the violating parties within the UAE during the last fiscal year, or if this is not possible to determine, the penalties will be between AED500,000 and AED5 million. Additionally, if parties initiate any actions or procedures to con - clude the economic concentration operation during the review period, a fine of between AED500,000 and AED5 million will be imposed. Under Article 24 of the Competition Law, any per - son violating the predatory pricing and restrictive agreement requirements will be fined not less than AED100,000 and not more than 10% of the annual total sales realised by the violating party during the last fiscal year, or, if this is not possible to determine, the penalties will be between AED500,000 and AED5 million.
8. Other Review/Approvals 8.1 Other Regimes
Ownership of real estate in certain Emirates is sub - ject to restrictions. Foreigners (non-Gulf Cooperation Council (GCC) nationals) can generally own real estate assets only within certain zones as designated by the government. Foreigners therefore need to check the applicable real estate regulations in the relevant Emir - ate they wish to invest in.
9. Tax 9.1 Taxation of Business Activities
A company incorporated in the UAE (or effectively managed from the UAE) would constitute a resident taxable person and will be subject to corporate tax (CT) at 9% on its worldwide taxable income (provided that the first AED375,000 is taxed at 0%). The UAE
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