Dubai, UAE — January 2026 — The UAE Ministry of Economy and Tourism has detailed the far-reaching implications of Federal Decree-Law No. 20 of 2025, which amends the existing Commercial Companies Law.
The amendments, spanning 15 articles and introducing a new provision for the formal transfer of company registration between jurisdictions, are designed to significantly enhance the nation’s investment climate and corporate flexibility.
According to the Emirates News Agency, the media briefing was led by Abdulla bin Touq Al Marri and attended by senior officials including Undersecretary Abdullah Al Saleh and representatives from the Securities and Commodities Authority and various economic development departments.
Minister Bin Touq positioned the reforms within the UAE’s long-term vision to build a world-leading, proactive business environment. He stated the amendments underscore the nation’s commitment to leveraging the private sector as a key driver of GDP growth and sustainable development, aligning with the “We the UAE 2031” vision.
A cornerstone of the new law is the introduction of multiple share classes for Limited Liability Companies and private joint-stock companies as a legal right, a pioneering move in the Middle East region previously restricted mainly to public joint-stock companies. “It enhances flexibility in ownership structures and better regulates the relationship among shareholders,” Bin Touq explained.
The amendments also simplify market entry and operations by legally enabling the transfer of a company’s commercial registration between emirates, free zones, and financial free zones without liquidating the entity or disturbing its existing legal obligations. The law further permits conversion between different company legal forms, including cooperatives.
According to the Minister, these changes will foster greater integration between mainland and free zone regulations, reduce compliance costs, ensure business continuity, and boost investor confidence. The Ministry anticipates a 10 to 15 percent increase in company registrations and licenses within the first year of implementation.
Highlighting the robust growth of the UAE’s commercial sector, Bin Touq revealed that approximately 760,000 new companies have been established since the original law’s issuance in September 2021, bringing the national total to over 1.4 million, a growth of 118.7 percent. In 2025 alone, about 250,000 new companies were formed.
The briefing also celebrated broader economic achievements, including a 74 percent increase in trademark registrations over four years and a 124 percent growth in registered intellectual property works. The tourism sector’s contribution to GDP rose to 15 percent in 2025, while the non-oil sector’s contribution reached 77.5 percent in the first half of the year. The UAE economy is projected to grow by 5 percent in 2025, driven by these dynamic sectors.
