The United Arab Emirates, the biggest economy of Arab World, would soon pass a new company law this year which would define the ownership limit of the business to be set up by any foreign company in the country. A senior economist concerned with the development said that the country would never allow 100 per cent ownership by any foreign company under the new law.

Mohamed Omar Abdullah, undersecretary in the Abu Dhabi Economic Department added, "It will be more than the current 49 percent. This will increase investments to Abu Dhabi and the U. A. E. in general."

The new regulation will encourage investment opportunities in the UAE according to Nasser Saidi, Chief Economist of the Dubai International Financial Center. He said that the law will truly liberalize the economy of the country providing more opportunities to small and medium scale industry.

The new law is expected to be presented before the cabinet within a month after getting nod of the Economy Ministry. The country aims to give some relaxations in ownership restrictions apparently under its policy to diversify the oil-gas dominant economy.