Abu dhabi: Abdulla bin Touq Al Marri, Minister of Economy and Tourism, emphasized the significance of a competitive economy, flexible legislation, effective incentives, and diversified opportunities as foundational elements for creating a robust business environment in the UAE. He highlighted that these factors play a crucial role in attracting investment, supporting corporate growth, and ensuring governance that protects business interests.
According to Emirates News Agency, Minister Al Marri underscored the importance of comprehensive and integrated legal frameworks in facilitating business operations across a variety of economic activities. He noted that these frameworks enhance investor confidence both locally and internationally, fostering advanced governance that supports the growth and sustainability of companies of all sizes and forms. The UAE, guided by its leadership's vision, has pursued a four-decade legislative journey to refine its Commercial Companies Law, aiming to ensure legal provisions empower rather than hinder businesses.
Al Marri detailed the significant amendments made to the Law, including updates to its provisions and the issuance of revised versions. These efforts have established a flexible and contemporary legislative foundation designed to increase the number of companies in the UAE while continuously improving the legislative and business environment. Currently, the UAE hosts more than 1.4 million companies, including 250,000 established in 2025 alone, reflecting the dynamic nature of the country's business ecosystem.
He further explained that the UAE has entered a new phase in developing the Law, characterized by a modern and flexible legislative methodology. The issuance of Federal Decree-Law No. (20) of 2025, which amends certain provisions of Federal Decree-Law No. (32) of 2021 on Commercial Companies, marks a significant milestone. These amendments, comprising 15 amended articles and one newly introduced article, represent unprecedented legislative steps at the regional level, enhancing companies' flexibility to adapt to future trends.
The amendments introduce multiple quota and share classes in limited liability companies (LLCs) and public and private joint stock companies (PJSCs), offering founders, shareholders, and partners unprecedented flexibility in structuring ownership, profit distribution, and voting. The UAE is among the first in the Middle East to extend this feature to LLCs, whereas many countries restrict it to joint stock companies only.
The Minister also highlighted the introduction of a new legal structure, the 'non-profit company,' which enables businesses to incorporate social and value-based dimensions by supporting impact and corporate social responsibility initiatives. This aligns with the UAE's commitment to enhancing the competitiveness of its business environment and reinforcing its national economic identity.
With Article 9 providing Emirati nationality to every company established in the country, the new Decree-Law strengthens the UAE's economic reputation and access to global markets. The legislation aligns local laws with those governing free zones, reducing compliance costs and enhancing business continuity.
Minister Al Marri concluded by affirming the UAE's commitment to implementing the new Decree-Law's provisions, which will enhance the private sector's capabilities and reinforce the UAE's position as a global business hub. This aligns with the 'We the UAE 2031' vision, aiming for global leadership in proactive legislation for new economy sectors.