The Ministry examines their pivotal role in enhancing competitiveness of the UAE’s business environment
The Ministry of Economy and Tourism recently held a media briefing to review the Federal Decree-Law No. 20 of 2025 amending certain provisions of Federal Decree-Law No. 32 of 2021 concerning Commercial Companies, issued by the UAE.
The amendments introduce proactive and crucial updates across its 15 articles, along with a new article regulating and legitimising the transfer of a company’s registration in the commercial register with the relevant authorities.
The briefing was in the presence of HE Abdulla Bin Touq Al Marri, Minister of Economy and Tourism; and attended by HE Abdullah Al Saleh, Undersecretary of the Ministry of Economy and Tourism; and representative of the Securities and Commodities Authority, along with a number of local economic departments, including HE Waleed Al Awadhi, CEO of the Securities and Commodities Authority; HE Saif Ahmed Al Suwaidi, Director General of the Ajman Department of Economic Development, and HE Counselor Barkan Khalifa Al Khalifa, Executive Director of the Business Governance Sector-Abu Dhabi.
A forward-looking vision
HE Bin Touq highlighted the UAE’s adoption of a long-term, forward-looking vision to build an advanced and pioneering business environment for companies of all sizes and forms, in line with global best practices and under the guidance of the country’s wise leadership.
New amendments provide the highest levels of flexibility and form a key attraction for companies and investments
“The new amendments to the Commercial Companies law marks a pivotal milestone that underscores the UAE’s commitment to enhancing the flexibility and sustainability of companies and supporting their ability to keep pace with future trends,” affirmed HE.
Multiple quotas and share classes as a legal right, with flexibility to transfer company registration
HE continued: “The amendments grant multiple quotas and share classes in limited liability companies (LLCs) and public and private joint stock companies as a legal right, compared to the previous system where this right was limited to public joint stock companies through a Cabinet decision,” he asserted.
250,000 new companies in the UAE’s market
The Minister emphasised that the UAE has attracted around 760,000 companies since the issuance of the Commercial Companies Law in September 2021 through the end of 2025. This brings the total number of companies in the country to more than 1.4 million, marking a 118.7 per cent growth compared to the end of the first half of 2021.
The Minister further explained that about 250,000 new companies were established in 2025 alone, while SMEs owned by UAE nationals grew by 63 per cent over the past five years.
The national economy expected to grow by five per cent
The UAE economy is expected to grow by 5 per cent in 2025, HE noted, driven by the continued expansion of non-oil sectors, whose contribution reached 77.5 per cent by the end of the first half of 2025. He highlighted that this growth is supported by the UAE’s flexible economic policies and legislation, which enable business growth and expansion across new economy sectors.
