Full details about increasing foreign ownership of shares to 40% in Sharjah
The Sharjah Islamic Bank increased foreign ownership of shares to 40%. This is the first time in the UAE’s history that a bank has reached this level of foreign ownership. In this article, we will evaluate the details of this big increase in foreign ownership shares. The Sharjah Islamic Bank is one of the most profitable banks in the Middle East, and it is also one of the major banks in the world. Likewise, the bank has a strong international presence with many branches worldwide. 1. What is foreign ownership? Foreign ownership is a type of ownership in which an entity owns shares of stock in a company that is not its primary residence. This type of proprietorship can be attributed to people outside the country. Likewise, citizens of the land who live abroad can have a foreign proprietorship. This type of investment has been a controversial topic in many countries. Some restrict foreign investment because they feel it will hurt their economy. In contrast, others, like the UAE, welcome it as an opportunity for growth. 1.1 Types of foreign investment Although foreign investment has different definitions for legal issues in other countries, it has two defined modalities: direct and indirect. 1.1.1 Direct investment Foreign direct investment is made by an economic entity (country, company, or individual) from a given country in another foreign country. This investment must have a specific purpose to distinguish this concept from others. This investment follows two primary purposes: obtaining a return and controlling part of a foreign company. It can be a new line of business or the expansion of a parent company in other countries as if they were subsidiaries. Therefore, direct investment refers to any foreign capital that aims to invest and obtain a return in the country. In addition, they are part of an enterprise abroad. 1.1.2 Indirect investment Indirect foreign investments involve corporations, financial institutions, and private investors that purchase foreign companies. This option is generally less controversial, as the local company can quickly sell its investment. This type of investment is also often referred to as foreign portfolio investment. Indirect investments include equity instruments such as stocks and debt instruments such as bonds or commissions. 2. What are the advantages of foreign investment in the UAE? Foreign investment is an important part of the UAE’s economy since the Sharjah Islamic Bank increased foreign ownership of shares to 40%. It has helped in the development of infrastructure and achieving economic growth. The UAE has been able to attract foreign investment for several reasons. These include: 2.1 Stable political environment The UAE has been a stable country for many years, and it is one of the most developed countries in the region and the world. The government has always been responsive to its people, and they have provided a stable environment for them. The UAE’s stability is not only due to its government but also because of its people. The people have always been very welcoming and open-minded, making the country very welcoming to all cultures. This nation has a stable political environment, which is one of the reasons why the Sharjah Islamic Bank increased foreign ownership of shares to 40%. 2.2 A welcoming business environment As a country that is considered a welcoming place for all, the UAE is known to be open and accepting of people from different cultures, lifestyles, and religions. 2.3 Attractive tax regime This Emirate has one of the most attractive tax regimes in the world. They have a zero-tax regime for professionals and entrepreneurs, including freelancers and consultants. In addition to this, they also have no taxes on foreign-earned income and no capital gains tax. This is why many people are moving to the UAE and investing in the local economy. 3. Why is foreign ownership in the UAE a controversial topic? Foreign ownership in the UAE is a controversial topic because it has been seen as a threat to national security and sovereignty. The UAE has been in a state of flux for decades, with its economy being primarily based on oil production and trade. The country was also one of the first to adopt free trade policies. A few years ago, foreign ownership was encouraged by the government to develop the nation’s industry and infrastructure. However, this led to many foreigners buying up land and establishing companies without restrictions or regulations. This led to many disputes over land rights, and it became clear that these unregulated policies were not sustainable for the country’s future development. Nowadays, after all these disputes, the Sharjah Islamic Bank increased foreign ownership of shares to 40%. 4. How does foreign ownership affect local businesses? Foreign ownership can be beneficial to local businesses in many ways ever since the Sharjah Islamic Bank increased foreign ownership of shares to 40%. It can provide them with access to new markets, improve the quality of their products, and provide them with more capital. However, there are also some bad side effects to foreign ownership. Foreign ownership can increase competition and decrease the number of jobs available in a local area. Besides, foreign companies are more likely to hire workers from other countries than locals, which would result in fewer job opportunities for locals. Foreign business owners might also force the company to move their manufacturing facilities abroad. 5. Who can benefit from the foreign ownership option? The foreign ownership option is an excellent opportunity for those who want to start their own business in the UAE. For example, the fact that Sharjah Islamic Bank increased foreign ownership of shares to 40% can benefit everything related to banking transactions. However, it is crucial to note that it does not apply to all sectors. Business activities vary across the Emirates, but these are examples of the types of activities you might see: 5.1 Contracting business Contracting business in the UAE is a lucrative field, as it offers many benefits to those who are interested in it. The country has been making significant
