During the year 1960 to 1970, many countries that were still developing then adopted a policy on import substitution that ensured the development of the sector for domestic manufacturing. Such countries viewed foreign investment as a method of draining the national assets. The resultant scenario was a dislike for the inflow of foreign investors into countries. However, the situation today has changed especially in the developing countries who are encouraging the increase of foreign investments through providing the foreigners with financial incentives. The increase of inward investment has in turn boosted the transfer of technology enabling the countries to improve their competitiveness as far as the global market is concerned. (Harhara, 2014). For a similar paper follow the link Order Dissertation Paper Online.
The article aids in the research through focusing on the connection between increase in foreign investments and the increase in technology transfer in the UAE which will in turn lead to economic growth.
The fifth literature source that has proved quite useful for this research was a review from the International Financial Law, ‘UAE Companies Reform Fails to Deliver’ written by Meager, that shows how lawyers in the UAE have identified substantial inadequacies in the Commercial Companies Law in the region that was affected since July 1st, 2015. According to the review, the law failed to take into consideration the problem of lack of foreign investment in the UAE. The lawyers complained that the law came as a disappointment since the restrictions that were put on foreign ownership of investments were not relaxed as they had anticipated. Get in touch with buytermpaperonline.com
The people in UAE have realized that there are tremendous benefits from the encouragement of inflow of foreign investment and had expected the government to let down the stiff law that barred these investors from having total ownership of their investments and thus encouraging them to invest more. Unfortunately, the Commercial Companies Law failed to look into this matter proving that the UAE government is still quite reluctant to create a suitable environment for inward investors. (Meagre, 2015).
The review has been significant in the improvement of this research as it shows that the people in the UAE are beginning to realize that foreign investments are important for the country and that it should be encouraged. However, the same cannot be said about the UAE government as the abolishment of the law that prevents foreign investors from having superior ownership of their investments is yet to be carried out.
The sixth literature source for the research is a review done by the World Trade Organization, ‘Trade Policy Review of the UAE’ written by Mina W that gives an overview of the trade regime in the UAE. The review shows that the UAE has a regime that is liberal although the foreign segment sector has several conditions and limitations. Although the region has a trade regime that is open, it contrasts sharply with the investment regime. The drafting of another Investment Law has been initiated which will see to the expansion of foreign participation that will encourage transfer of information and foreign investment. Despite the drafting, the foreign investment sector in UAE still continues to be plagued by limitations since all foreign investments must be subjected to a domestic capital of 51%. Additionally, it is mandatory that business is conducted with the aid of local agents. (Mina, 2008).
