A Quarterly Newsletter from UAE and Oman Offices

VOL 12, Issue 2 April 2010

FREE ZONE UPDATE

Minimum Share capital requirement in Dubai Silicon Oasis amended.

Launched in 2004, Dubai Silicon Oasis (DSO) is considered as one of the leading centers of advanced electronic innovation, design and development, with a mission to facilitate and promote modern technology-based industries in this region.

In order to attract more investors into the Free Zone, the DSO Authority has now decided to amend the minimum share capital requirement of Free Zone Establishments (FZE) and Free Zone Companies (FZCO) to AED 100,000.

Prior to this amendment, Free Zone Establishments (FZE) were required to have minimum share capital of AED 1,000,000 represented by one share and any additional capital in multiples of AED 1,000,000. Free Zone Companies (FZCO) were required to have minimum share capital of AED 500,000 represented by five shares, each share of AED 100,000 or its multiples.

This move is likely to encourage new entrants into the market, who previously stayed away with the onerous capital requirement as a hindering factor. This amendment has the potential to usher in fresh investments into this country.

(This article has been compiled by Mr. Stany Pereira, Partner and Mr. Jawhar A., Free Zone Coordinator)