Abu Dhabi, UAE – The Ministry of Economy and Tourism today reviewed Federal Decree-Law No. (20) of 2025 amending certain provisions of Federal Decree-Law No. (32) of 2021 concerning commercial companies during a media briefing held in Dubai. The amendments include substantial and proactive changes to 15 articles, in addition to the introduction of a new article regulating the transfer of company registration in the Commercial Register with the competent authorities. During the briefing, the Ministry revealed that the total number of companies operating in the UAE has risen to over 1.4 million.
The briefing was attended by His Excellency Abdullah bin Touq Al Marri, Minister of Economy and Tourism, His Excellency Abdullah Al Saleh, Undersecretary of the Ministry, and representatives from the Securities and Commodities Authority (SCA) and several local economic departments, including His Excellency Waleed Al Awadhi, CEO of the SCA; His Excellency Saif Ahmed Al Suwaidi, Director General of the Ajman Department of Economic Development; and His Excellency Counselor Burkan Khalifa Al Khalifa, Executive Director of the Business Governance Sector at the Abu Dhabi Department of Economic Development.
His Excellency Abdullah bin Touq affirmed that the UAE, under the guidance of its wise leadership, has adopted a forward-looking, long-term vision to develop an advanced and pioneering business environment for companies of all sizes and types. This vision is achieved through the development of competitive economic legislation and policies aligned with global best practices, supporting GDP growth and strengthening the role of the business sector as a key partner in the sustainable development journey over the next fifty years. This aligns with the objectives of the “We Are the UAE 2031” vision, which aims to position the UAE as a global leader in proactive legislation for emerging economic sectors.
His Excellency stated that the new amendments to the Commercial Companies Law represent a pivotal milestone, reflecting the UAE’s commitment to enhancing the resilience and sustainability of companies and supporting their ability to keep pace with future trends. These unprecedented legislative steps, both nationally and regionally, contribute to a competitive business environment, attract investment, and provide a comprehensive and clear legal framework that supports company growth and sustainability. This framework facilitates access to financing and investment, enhances continuity and geographical expansion, and offers greater flexibility in ownership structures, sales and exit processes, and strengthens corporate governance and the protection of shareholders’ rights.
His Excellency explained that the amendments grant a legal right to multiple classes of shares in limited liability companies and public and private joint-stock companies. Previously, this right was limited to public joint-stock companies by a Cabinet decision. He noted that the UAE is among the first countries in the Middle East to legislate multiple classes of shares in limited liability companies, thus enhancing the flexibility of the ownership structure and regulating the relationship between partners.
He added that the law allows for the transfer of commercial registration for companies between the UAE and free zones and financial free zones, while maintaining the company’s legal personality, contracts, and obligations without the need for re-establishment or liquidation. It also allows companies to transform between different legal forms, including cooperatives, thereby facilitating ease of doing business and smoother market entry.
His Excellency pointed out that the amendments represent a qualitative leap in harmonization and integration between local legislation and the laws of free zones and financial free zones. This reduces compliance costs, ensures business continuity, and strengthens investor and business community confidence in the reputation of the national economy. He anticipates a 10-15% increase in company registrations and licenses during the first year of implementing the amendments.
He explained that since the issuance of the Commercial Companies Law in September 2021 until the end of 2025, the UAE markets witnessed the registration of approximately 760,000 companies, bringing the total number of companies operating in the country to more than 1.4 million, representing a growth of 118.7%. In 2025 alone, nearly 250,000 new companies were established, and small and medium-sized enterprises (SMEs) owned by UAE nationals grew by 63% over the past five years.
His Excellency also noted the registration of approximately 37,794 national and international trademarks in 2025, a 74% increase in registered trademarks over four years. Additionally, 3,595 intellectual property rights were registered in the same year, achieving a cumulative growth of 124% over four years.
On the tourism front, His Excellency stated that the sector’s contribution to GDP has risen to 15%, amounting to AED 291 billion, compared to 6% in 2021. He also projected that the national economy will achieve 5% growth by 2025, driven by the increased contribution of non-oil sectors to 77.5%, and thanks to flexible economic policies and legislation that support business growth.
The new amendments to the law contribute to strengthening the investment environment in the UAE by providing modern and diverse financing tools, such as private placements for private joint-stock companies, issuing multiple classes of shares or stocks, and valuing in-kind contributions according to approved standards, in coordination with the Ministry of Economy and Tourism, or with the Securities and Commodities Authority for public joint-stock companies. These tools enable rapid and effective project financing while maintaining founders’ control over their companies, thus enhancing companies’ ability to grow, expand, and maintain their strategic vision. The amendments establish a clearer and more flexible framework for corporate governance by regulating the mechanisms for removing and accepting resignations of directors, and ensuring the temporary continuity of the board of directors to avoid administrative vacuums. This guarantees the stability of the administrative structure and business continuity, and reduces the risks associated with sudden transitions or changes in management.
