It is conditional for an investor, according to this law, to be a natural person residing in the United Arab Emirates, must practice the required activity by himself and have a license to practice the activity in his country of origin. However, he may not open branches inside the country. In case the investor is a legal person wishing to conduct retail or wholesale trade according to this law, the investor must be in the form of a company of which the share owned by the UAE nationals is not less than 50% of the capital. As for the ratio of legal shares concerning the activities for which no executive decisions have been issued in the country, the provisions of Article (22) of the Federal Law No. (8) for 1984 concerning commercial companies stated that “observing the commercial activities confined to nationals and prescribed by this law, each company to be established in the country should have one or more nationals whose share is not less than 51% of the capital
Foreign investors may appoint a commercial agent to represent their interests in the UAE. instead of establishing a permanent presence. The UAE, Commercial Agencies Law (Federal Law No. 18 of 1981, as amended by Federal Law No. 14 of 1988) regulates and governs the appointment of commercial agents, sales representatives, and distributors in theUAE. The law defines a commercial agency as any arrangement whereby a foreign company is represented by an agent to “distribute, sell, offer, or provide goods or services within the UAE for a commission or profit”.