Abu dhabi: The Ministry of Economy and Tourism 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 updates across 15 articles and a new article regulating the transfer of a company's registration in the commercial register with the relevant authorities.
According to Emirates News Agency, the briefing was attended by Abdulla bin Touq Al Marri, Minister of Economy and Tourism, along with key officials including Abdullah Al Saleh, Waleed Al Awadhi, Saif Ahmed Al Suwaidi, and Counselor Barkan Khalifa Al Khalifa. Bin Touq emphasized the UAE's vision to build an advanced business environment, aligning with global standards and the "We the UAE 2031 vision." This initiative aims to position the UAE as a leader in proactive legislation for new economy sectors.
The amendments to the Commercial Companies law are seen as a pivotal milestone, enhancing flexibility and sustainability for companies. The law introduces legislative measures at both national and regional levels, reinforcing the UAE's business environment competitiveness and investment attractiveness. It provides a legal framework supporting company growth, facilitating access to financing, and allowing geographical expansion across free zones.
Additional amendments offer more flexibility in ownership structures and corporate governance. Bin Touq highlighted the UAE's pioneering approach in the Middle East by allowing multiple quotas classes for LLCs, enhancing ownership structure flexibility and shareholder relations. The law also eases business operations by permitting company registration transfer between emirates and free zones without re-establishment.
The amendments are expected to enhance integration between local and free zone laws, reducing compliance costs and supporting efficient market access. The number of company registrations and licenses in the UAE is projected to rise by 10 to 15 percent within the first year of the amendments. The UAE has attracted around 760,000 companies since 2021, bringing the total to over 1.4 million, a 118.7 percent growth from mid-2021.
In 2025 alone, approximately 250,000 new companies were established, with SMEs owned by UAE nationals growing by 63 percent in the past five years. The year 2025 also saw the registration of approximately 37,794 trademarks, with a 74 percent increase over four years, highlighting the business environment's vitality. Additionally, 3,595 intellectual property works were registered in 2025, marking a 124 percent growth over four years.
The UAE's tourism sector showed strong performance, contributing 15 percent to the national GDP in the previous year, up from six percent in 2021, reaching AED291 billion. The UAE economy is projected to grow by 5 percent in 2025, driven by non-oil sectors contributing 77.5 percent by mid-2025, supported by flexible economic policies enabling business growth.
