Dubai, UAE — January 2026 — The United Arab Emirates has embarked on a transformative new phase in its commercial legislation, introducing sweeping amendments designed to solidify its status as a premier global hub for business and investment.
Abdulla bin Touq Al Marri, minister of economy and tourism, detailed the historic reforms, centered on Federal Decree-Law No. (20) of 2025, which amends the existing Commercial Companies Law.
Al Marri emphasized that a competitive economy, flexible legislation, and effective incentives form the cornerstone of a robust business environment. He stated that the UAE’s four-decade legislative journey aims to create legal frameworks that enable, rather than constrain, businesses.
The aim is to ensure that legal provisions serve as a dynamic that deliver competitive advantages, unlock opportunities, and open new horizons, Al Marri explained.
The latest amendments, comprising 15 revised articles and one entirely new provision, represent what the Minister described as “unprecedented legislative steps at the regional level.”
A flagship reform grants all limited liability companies and joint stock companies the legal right to issue multiple classes of shares or quotas.
This move, a first for LLCs in the Middle East, provides founders and investors with unprecedented flexibility in structuring ownership, profit distribution, and voting rights.
The amendments also introduce a new “non-profit company” structure to support corporate social responsibility and research initiatives.
Furthermore, they strengthen the UAE’s national economic identity by affirming that every company established in the country, including within free zones, holds Emirati nationality. This is intended to enhance global market access and build on the nation’s international partnerships.
Al Marri highlighted that these changes are directly responsive to the business sector’s evolving needs and are aligned with global best practices. “We regard this distinctive legislative milestone as a step that strengthens the protection of rights and expands opportunities,” he said, sending a “message of confidence, empowerment, and flexibility to every investor choosing the UAE.”
The reforms also advance legislative integration between mainland and free zone jurisdictions, aiming to reduce compliance costs and ensure smoother business operations and transfers across the economy.
The Minister concluded by linking the new law to the broader ‘We the UAE 2031’ vision, with the goal of achieving global leadership in proactive legislation for new economy sectors within the next decade. The legislative dynamism is reflected in the nation’s business growth, with the UAE now hosting over 1.4 million companies, including 250,000 established in 2025 alone.
