Minister of Economy and Tourism: The Commercial Companies Law has investment flexibility that pushes the UAE towards global leadership
Abu Dhabi, January 14 / WAM / His Excellency Abdullah bin Touq Al Marri, Minister of Economy and Tourism, said that flexible legislation, incentives and diversity of opportunities represent at the heart of any competitive economy the main axes for creating a strong business environment capable of attracting investments, supporting the growth of companies, and ensuring effective management to protect their interests.
His Excellency added that establishing integrated and comprehensive legal frameworks to facilitate the practice of business and various economic activities is the engine that enhances confidence among local and international investors, and creates advanced governance that supports the growth and sustainability of companies of all sizes and types.
He pointed out that the UAE, thanks to the vision of its wise leadership, embarked on a legislative journey that extended over four decades to develop the commercial companies law, and our philosophy is to enhance the role of legislative texts to be an enabling tool for companies and projects, not an obstacle to them, and to act as dynamic growth engines that grant advantages and opportunities and open up prospects for future prosperity for economic sectors and business activities.
He said that from this standpoint, the law witnessed a series of fundamental amendments, which included updating its texts and provisions, and issuing new versions that replaced the previous ones, to become a flexible and modern legislative base aimed at increasing the number of companies in the country, and continuing to improve the legislative climate and business environment, as the UAE markets today host more than 1.4 million companies, including 250,000 companies established during the year 2025 alone, in a clear indication of the vitality and activity of the business environment in the country.
His Excellency continued, “The journey did not stop there. Rather, the country moved to a new stage of law development, according to a flexible and modern methodology in legislative thought, with the issuance of Federal Decree Law No. 20 of 2025 amending some provisions of Federal Decree Law No. 32 of 2021 regarding commercial companies. The new amendments, which included 15 amended articles and one new article, were characterized by unprecedented legislative steps at the region level. To enhance the flexibility of companies, enable them to keep pace with future trends, provide them with innovative tools that facilitate mergers and exits, and open various horizons for obtaining investments and financing.
He explained that what distinguishes these amendments is the response to the needs and aspirations of the business sector through our continuous investigation of reality, and at the same time, we were keen to anticipate the future and keep pace with the best global practices, through more advanced governance and broader options for ownership and management, in a way that enhances the continuity of companies, facilitates their transfer and transformation of their legal form, and supports the integration of the national economy between the free zones and the state’s territory.
He added that from our position as policy makers, we see this distinguished legislative step as strengthening the protection of rights and expanding opportunities for companies, which represents a message of confidence and support for flexibility and empowerment, and we direct it to every investor who seeks to make the UAE a platform to launch his business and achieve regional and global expansion.
His Excellency pointed out that the amendments granted the advantage of multiple categories of shares and shares in limited liability companies and public and private joint-stock companies as a legal right and a strategic tool that gives founders, shareholders and partners in any business unprecedented flexibility in structuring ownership, distributing profits, voting, etc., compared to the previous period, when obtaining this right was limited to public joint-stock companies through a decision of the Council of Ministers.
He stressed that the UAE is one of the first countries in the Middle East to provide this feature in limited liability companies, compared to many countries that restricted it to joint stock companies.
His Excellency continued that the classification of partners’ shares or shares into multiple categories is done according to specific patterns that will be approved by a decision of the Council of Ministers, and in keeping with relevant international legislation. Examples include: the category of dividend shares that grant their owners a higher percentage of profits or special privileges, the category of shares with priority in recovering capital upon exit or liquidation, which is considered one of the preferred rights, the category of preferred shares that grant additional privileges in profits or liquidation and distinct voting rights, and the category of shares with multiple nominal values that can be issued at different values. Varying without prejudice to the rights of partners, and the category of restricted shares that are subject to restrictions on disposition or transfer of ownership, including the partners’ approval of fundamental decisions.
He explained that the amendments created a modern economic model for companies, which is the “non-profit commercial company,” which can add a value and social dimension to companies by supporting impact projects, social responsibility, and businesses based on innovation, research and development. The amendments also allowed for faster and more comprehensive governance procedures, keeping pace with the requirements of the new economy and enhancing the competitiveness of the business environment.
He pointed out that, with the aim of consolidating the national economic identity, Article 9 stipulates that every company established in the UAE, including companies registered in the free zones and financial free zones, holds the nationality of the country. This trend contributes to enhancing the economic reputation of the UAE and improving companies’ access to global opportunities and markets, based on the country’s broad international partnerships and solid economic standing.
He said, “We are confident that the new decree for the Commercial Companies Law will achieve a qualitative leap in compatibility and integration between local legislation and the laws of free zones and financial free zones related to establishing, operating and transferring companies between the various systems and integrating the relationship between the licensing authorities in the country, in a way that reduces the cost of compliance and doing business for companies, ensures the continuity of their business, and supports their ability to access markets.”
His Excellency the Minister of Economy and Tourism stressed that continuing efforts to implement the provisions of the new decree and achieving the maximum benefit for companies and the Emirati business community from the advantages and facilities it provides, and enhances the capabilities of the private sector, as it represents a strategic step to strengthen the UAE’s position as a global center for business and investment, and reflects its vision towards innovation and economic sustainability, and in a way that supports the UAE’s obtaining first place in the world in developing proactive legislation for sectors of the new economy by the next decade, in light of the objectives of the “We Are the Emirates 2031” vision.
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