Facts Every Foreign Investor Needs To Know About UAE Free Zone

Facts Every Foreign Investor Needs To Know About UAE Free Zone

If you are considering Dubai freezone company formation, then you need to be aware of the country’s legal framework. The UAE federal constitution and laws allow the emirates to establish free zones for general commercial and industry-specific activities. UAE free zones are designed to attract foreign direct investment. Entities located in free zones are allowed to have 100 percent foreign ownership, while nationals of the UAE are required to own at least 51 percent of a company located outside of a free zone.

The legal system in the UAE:

The UAE legal system is based on British regulations and was also influenced by French and Roman law. While Islamic laws are the dominant form, traces of other legal systems remain in the legislation and business regulations. For this reason, UAE lawyers need to be familiar with both legal systems. Below is a brief description of the legal system in the UAE. It should be clear to any visitor that the UAE is a mix of different legal systems.

The legal system in the UAE is not as rigid as in many countries. A thorough assessment of the UAE legal system is necessary for successful business integration and performance. By assessing the legal system of the UAE, business owners can avoid problems with crucial business processes. The UAE legal system is similar to that of many other jurisdictions, so understanding the legal system of the other countries will give them a head start in dealing with the UAE. This will give you a foundation to navigate the legal system in UAE and its various aspects.

Judiciary is independent in UAE:

The judiciary is independent in the UAE. It is chaired by the Minister of Justice, who is also a member of the Cabinet. Supreme Court judges are appointed by the President. The government’s ministries are responsible for foreign affairs, defense, security, currency, public health, and education. The Ministry of Justice oversees these sectors. The relevant ministries draft laws and bills, which are then submitted to the National Council for review. After this, they are discussed and approved by the Cabinet.

The law is governed by federal law no. 8 of 1980:

UAE employment law is governed by Federal Law No. 8 of 1980, which sets forth working hours, leave entitlements, health care regulations, and other requirements. Emirati citizens are given preference in hiring and promoting foreign workers. The UAE Federal Law 06 of 2020 stipulates that women and men must be paid equal wages in the private sector. However, there are still some issues affecting workers’ rights. UAE law prohibits workers from participating in unions and strikes.