Recent amendments to the UAE’s Commercial Companies Law are strengthening the recognition of businesses established in the country as Emirati entities, including those operating in free zones and financial free zones.
This move aims to enhance their global market positioning and access to international trade opportunities.
What the Law Means
Speaking at a media briefing on Tuesday, UAE Minister of Economy and Tourism Abdulla bin Touq Al Marri clarified that the provision grants citizenship status to the company itself, not to its owners, shareholders, or investors.
This distinction is crucial for understanding the scope of the new amendment.
“When a company is established in the country, the company takes the status of an Emirati company,” Al Marri explained, noting this follows global practice. Just as companies registered in Germany or the UK are considered German or British companies, businesses established in the UAE receive Emirati status.
Strategic Benefits for Businesses
The Emirati designation offers significant commercial and strategic advantages. Companies can leverage the UAE’s Comprehensive Economic Partnership Agreements (CEPAs) with over a dozen countries, including India, Turkey, Indonesia, and South Korea.
These agreements reduce tariffs, streamline customs procedures, and open new sectors.
The status also enables businesses to benefit from government incentives for local companies and enhances their credibility when competing in international markets. This positioning strengthens UAE-based businesses in cross-border trade and supports their global expansion efforts.
Coverage Extends to Free Zones
Importantly, the amendment confirms that Emirati status applies to all companies established in the UAE, including those in free zones and financial free zones, not just mainland entities.
This comprehensive coverage reinforces the country’s economic identity and broadens market access opportunities for all registered businesses.
Part of Broader Reforms
The amendments are part of Federal Decree-Law No. (20) of 2025, which introduces several business-friendly changes, including:
- Multiple classes of shares in limited liability companies and joint stock companies
- Freedom to transfer registration between emirates and free zones without losing legal identity
- Clearer rules for shareholder exits, mergers, and acquisitions
- Permission for free zone companies to establish mainland branches
- Introduction of non-profit commercial companies
The Ministry of Economy projects these reforms will increase company registrations and licenses by 10–15 percent in the first year, supporting the UAE’s goal of reaching two million companies by decade’s end.
According to Al Marri, the initiative represents a strategic effort to position the UAE and its companies at the forefront of global trade and investment, strengthening national brands while enhancing the international reputation of UAE-based businesses.
