UAE Introduces Landmark Reforms to Commercial Companies Law
Major legal reforms enhance investment flexibility and modernise UAE’s corporate landscape.
New multi-class shares, private-market fundraising, and streamlined business relocation boost investment appeal
The United Arab Emirates has enacted major reforms to its Commercial Companies Law, marking a pivotal step in modernising the nation’s corporate legal framework. Issued as a federal decree this week, the amendments introduce greater flexibility in company structures, private-market fundraising, and streamlined relocation of businesses across emirates and free zones — strengthening the UAE’s position as a leading global investment destination.
Among the most notable changes is the introduction of multi-class shares, giving companies increased versatility in structuring capital and attracting diverse investors. The new provisions also enable businesses to raise funds through private markets, offering innovative financing solutions that align with global best practices. Additionally, companies can now more easily relocate operations across emirates and free zones, facilitating strategic growth and operational efficiency.
The reforms further introduce a new legal entity: the non-profit company. This structure allows organizations to reinvest net profits into their stated objectives rather than distributing them to shareholders, providing a clear, regulated framework for social, charitable, and development-focused entities to operate within the UAE’s corporate environment.
According to government officials, these updates are designed to expand investor options, enhance transparency, and align the UAE’s corporate regulations with international standards. By modernising legal structures and offering flexible ownership and financing options, the UAE is not only reinforcing its global business competitiveness but also creating a more inclusive ecosystem for innovation, investment, and sustainable development.
The reforms are expected to catalyse further economic growth, attract international businesses, and support the country’s long-term vision as a premier hub for entrepreneurship and investment in the region.
