Abu Dhabi: A senior Abu Dhabi Government official on Tuesday ruled out the possibility of 100 per cent foreign business ownership outside UAE free zones as part of the expected new companies law.

"The new companies law will give some relaxation to foreign ownership," Mohammed Omar Abdullah, undersecretary of the emirate's Department of Economic Development, said on the sidelines of an investment conference. "But it will not be to the extent of 100 per cent."

Abdullah added that the Ministry of Economy is preparing the final draft of the law ahead of its relay to the Federal National Council later this year.

A new companies law has been in the works since 2008, but the provision for allowing majority foreign ownership has only been promoted by the Ministry of Economy since September.

Current rules limit foreigners to 49 per cent ownership.