The Ministry of Economy and Tourism held a media briefing to review the Federal Decree-Law No. 20 of 2025 amending certain provisions of Federal Decree-Law No. 32 of 2021 concerning Commercial Companies, issued by the UAE.
The amendments introduce proactive and crucial updates across its 15 articles, along with a new article regulating and legitimising the transfer of a company’s registration in the commercial register with the relevant authorities.
The briefing was held in the presence of Abdulla bin Touq Al Marri, Minister of Economy and Tourism, and was attended by Abdullah Al Saleh, Undersecretary of the Ministry of Economy and Tourism; and representative of the Securities and Commodities Authority; Waleed Al Awadhi, CEO of the Securities and Commodities Authority: Saif Ahmed Al Suwaidi, Director-General of the Ajman Department of Economic Development; and Counselor Barkan Khalifa Al Khalifa, Executive Director of the Business Governance Sector – Abu Dhabi.
Bin Touq highlighted the UAE’s adoption of a long-term, forward-looking vision to build an advanced and pioneering business environment for companies of all sizes and forms, in line with global best practices and under the guidance of the country’s wise leadership.
He noted that the country has introduced competitive economic legislation and policies that reflect its strong belief in the vital role of the business sector in driving GDP growth and serving as a key partner in the UAE’s sustainable development journey over the next 50 years. This approach aligns with the objectives of the “We the UAE 2031 vision,” which aims to position the UAE as the world’s leading country in developing proactive legislation for new economy sectors by the next decade.
In his speech at the briefing, he said that the new amendments to the Commercial Companies law marks a pivotal milestone that underscores the UAE’s commitment to enhancing the flexibility and sustainability of companies and supporting their ability to keep pace with future trends. The law introduces unprecedented legislative measures at both the national and regional levels, reinforcing the competitiveness of the UAE’s business environment and its attractiveness to investments.
It provides a comprehensive and clear legal framework that supports our companies’ growth and long-term sustainability, facilitates access to financing and investment opportunities, and strengthens their ability to continue operations and expand geographically across free zones and financial free zones.
In addition, the amendments offer greater flexibility in ownership structures and sale and exit processes, while enhancing corporate governance and safeguarding shareholders’ rights within a leading and innovative national economic ecosystem aligned with global best standards and 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, he said, also enhances the ease of doing business and ensures smoother entry to the markets by allowing the transfer of a company’s registration in the commercial register between emirates, free zones and financial free zones, while maintaining the company’s original legal personality as well as its contracts and obligations, without the need for re-establishment or liquidation. Additionally, it permits the conversion of companies between different legal forms, including cooperatives.
The Minister highlighted that the new amendments will significantly enhance alignment and integration between local legislation and the laws of free zones and financial free zones related to establishing, operating and transferring companies between different regimes, as well as strengthen the integration among licensing authorities in the UAE.
This will reduce compliance and business operating costs for companies, ensure business continuity, and support their access to markets, financing and investments efficiently and effectively, thereby reinforcing investor and business community confidence in the reputation of the national economy. The total number of company registrations and licences in the UAE is expected to increase by 10 to 15 percent within the first year of implementing the new amendments.
He emphasised that the UAE has attracted around 760,000 companies since the issuance of the Commercial Companies Law in September 2021 through the end of 2025. This brings the total number of companies in the country to more than 1.4 million, marking a 118.7 percent growth compared to the end of the first half of 2021.
He further explained that about 250,000 new companies were established in 2025 alone, while SMEs owned by UAE nationals grew by 63 per cent over the past five years.
The Minister remarked that the year 2025 was a distinguished one on the economic and tourism fronts, witnessing various key achievements, including the registration of approximately 37,794 national and international trademarks.
Additionally, the number of registered trademarks also increased by 74 percent over four years – a clear indicator of the vitality and attractiveness of the business environment for investments. In the domain of intellectual property, 3,595 works were registered in 2025, achieving a remarkable overall growth of 124 percent over four years.
Bin Touq said that the UAE tourism sector delivered a robust and distinguished performance, with its contribution to the national GDP rising to 15 percent last year, compared to six percent in 2021, reaching a total value of AED291 billion. This reflects an exceptional growth of nearly 216 percent over four years.
The UAE economy is expected to grow by 5 percent in 2025, he noted, driven by the continued expansion of non-oil sectors, whose contribution reached 77.5 percent by the end of H1 2025.
He highlighted that this growth is supported by the UAE’s flexible economic policies and legislation, which enable business growth and expansion across new economy sectors.
