A well-known newspaper on Thursday claimed that legal protection for overseas investors will be boosted, if the UAE enhances foreign investment in the country with a draft law this year.

This foreign investment law will lay down systematic incentives, in order to attract foreign investors as the country speeds up economic diversification. The UAE has been hit hard by the financial meltdown.

Minister of Economy, Sultan bin Saeed al-Mansouri, said in a speech to the Dubai Chamber of Commerce and Industry (DCCI): "We are preparing a draft law that guarantees a suitable climate for investors to do business according to the fundamentals of justice."

The newspaper further said that, as of now, the legislation is in draft form until it receives Cabinet approval and had been waiting queue from quite some time.

Mansouri concluded, "With more than 2 billion dirhams invested in the UAE's stock markets in the second quarter and third quarter so far this year, some of the cash that was withdrawn is now be starting to return."