Source : WAM
The Ministry of Economy and Tourism organised a media briefing to outline the key features of Federal Decree-Law No. 20 of 2025, which amends selected provisions of Federal Decree-Law No. 32 of 2021 on Commercial Companies in the UAE.
The amendments introduce forward-looking and substantial updates across 15 articles, in addition to a new article that regulates and legalises the transfer of a company’s registration within the commercial register with the relevant authorities.
The briefing was attended by Abdulla bin Touq Al Marri, Minister of Economy and Tourism, along with Abdullah Al Saleh, Undersecretary of the Ministry; representatives from the Securities and Commodities Authority, including its CEO Waleed Al Awadhi; Saif Ahmed Al Suwaidi, Director-General of Ajman Department of Economic Development; and Counselor Barkan Khalifa Al Khalifa, Executive Director of the Business Governance Sector in Abu Dhabi.
Bin Touq highlighted that the UAE has adopted a long-term, future-focused vision to establish an advanced and competitive business environment for companies of all sizes and legal forms, aligned with global best practices and guided by the country’s wise leadership.
He explained that the UAE has introduced competitive economic legislation and policies reflecting its firm belief in the central role of the business sector in driving GDP growth and supporting the nation’s sustainable development over the next 50 years. This approach aligns with the objectives of the “We the UAE 2031” vision, which seeks to position the UAE as a global leader in developing proactive legislation for new economy sectors.
In his address, the Minister said the amendments to the Commercial Companies Law represent a major milestone, reaffirming the UAE’s commitment to enhancing corporate flexibility and sustainability, and enabling companies to adapt to future developments. He noted that the law introduces unprecedented legislative measures at both national and regional levels, further strengthening the UAE’s competitiveness and investment appeal.
The updated framework provides clear and comprehensive legal provisions that support company growth and long-term sustainability, facilitate access to financing and investment, and enable businesses to continue operations and expand across free zones and financial free zones.
The amendments also introduce greater flexibility in ownership structures and sale and exit mechanisms, while strengthening corporate governance and protecting shareholders’ rights within a modern economic ecosystem aligned with international best practices.
“The amendments grant multiple quotas and share classes in limited liability companies (LLCs) and public and private joint stock companies as a legal right, compared to the previous system where this right was limited to public joint stock companies through a Cabinet decision,” Bin Touq continued.
He added, “The UAE is among the first countries in the Middle East to allow multiple quotas classes for LLCs, while many countries restrict this to joint stock companies, particularly public joint stock companies. It enhances flexibility in ownership structures and better regulates the relationship among shareholders.”
The law further simplifies doing business by enabling companies to transfer their registration between emirates, free zones and financial free zones while retaining their legal identity, contracts and obligations, without the need for liquidation or re-establishment. It also allows companies, including cooperatives, to convert between different legal forms.
The Minister noted that the amendments will strengthen alignment between local legislation and the laws governing free zones and financial free zones, while improving integration among licensing authorities nationwide.
These measures are expected to lower compliance and operational costs, ensure business continuity, and enhance access to markets, financing and investment, thereby boosting investor confidence. Company registrations and licences are projected to rise by 10 to 15 percent in the first year of implementation.
Bin Touq highlighted that approximately 760,000 companies have been established since the Commercial Companies Law came into effect in September 2021 through the end of 2025, bringing the total number of registered companies in the UAE to more than 1.4 million—an increase of 118.7 percent compared to mid-2021.
He added that around 250,000 new companies were registered in 2025 alone, while SMEs owned by UAE nationals grew by 63 percent over the past five years.
The Minister also noted that 2025 marked a standout year for economic and tourism performance, with the registration of about 37,794 national and international trademarks. Trademark registrations increased by 74 percent over four years, highlighting the strength and attractiveness of the business environment. In intellectual property, 3,595 works were registered in 2025, reflecting overall growth of 124 percent over four years.
Bin Touq said the tourism sector delivered strong results, with its contribution to GDP rising to 15 percent last year from six percent in 2021, reaching AED291 billion—an exceptional growth of nearly 216 percent over four years.
He concluded by noting that the UAE economy is expected to grow by five percent in 2025, driven by continued expansion in non-oil sectors, which accounted for 77.5 percent of GDP by the end of the first half of 2025, supported by flexible economic policies and legislation that foster growth across new economy sectors.
