Competition

Sheikha Lubna has been important for the UAE for two reasons - she was the first female minister, and she understands the benefit that foreign businesses and competition play in the economy. Since she was assigned her role in Economy and Planning in late 2004, there have been rumours of a new companies law that would really change the dynamic of the UAE economy. In January, she announced that foreign ownership of companies (outside the freezones) would move from 49% to a 79% cap. It was talked about yesterday that this would now be 100% ownership which would completely shake up the economy. Whether this is in fact true, or was just referring to the massive special economic zones project for Abu Dhabi that was discussed today is unclear. What is clear that whether it is 79% or 100% ownership for foreign companies, the lure to these companies to operate in the UAE increases substantially. It is also clear that UAE Nationals are busy securing business interests before agency laws monopolising importing of foreign brands are changed. Bring on June by which time the new law will be announced.

Andrew Carnegie once said "And while the law [of competition] may be sometimes hard for the individual, it is best for the race, because it ensures the survival of the fittest in every department."