U.A.E. Adjourns Law on Companies Foreign Ownership, Khaleej Says

Feb. 14 (Bloomberg) -- The United Arab Emirates has postponed a plan to allow foreigners to own majority stakes in companies after an advisory body voiced concern that the local population would lose control of the economy, Al Khaleej said.

Economy Minister Sultan Al Mansouri yesterday told a meeting of the Federal National Council that a new draft will be submitted when it reconvenes after the summer recess, the newspaper said. The new draft will specify the conditions and industries where majority ownership by foreigners will be allowed, and will be part of a foreign investment law, he said.

The Federal National Council rejected the draft law on companies proposed by the government, after members including Ahmad al-Shamsi, Abdul Rahim al-Shaheen and Mosbah al-Ketbi criticized it. Al-Ketbi said such a law would help foreigners compete against the Emiratis.

Emiratis account for 19 percent of the total population of the country, according to the CIA’s World Factbook.