The government has decided to allow 100 per cent foreign ownership of companies in the UAE, and 10-year visas for certain highly qualified professionals and investors.

UAE Vice-President, Prime Minister and Ruler of Dubai Sheikh Mohammed bin Rashid al-Maktoum revealed the decision on his official Twitter account on 20 May.

“At today's cabinet meeting, we decided to allow 100% foreign ownership of companies in UAE, with a 10-year visa for investors, scientists, doctors, engineers, entrepreneurs and innovators," he said. "The UAE has always welcomed, and always will, innovators and business leaders.”

The move will help attract talent and promote investment in the UAE.

"The UAE will remain a global incubator for exceptional talents and a permanent destination for international investors," said Sheikh Mohammed on his personal website on 20 May. "Our open environment, tolerant values, infrastructure and flexible legislation are the best plan to attract global investment and exceptional talents in the UAE."

The Ministry of Economy together with other relevant authorities has been tasked with implementing the resolution, following up on its developments, and submitting a detailed study in the third quarter of this year.

Changes to the companies law for the UAE have been widely talked about for many years. In April, Economy Minister Sultan Saeed al-Mansoori said that new legislation would be passed this year, adding that the new ownership laws are expected to boost foreign investment by 15 per cent.