UAE law grants Emirati status to companies

DUBAI, UAE (MNTV) — The United Arab Emirates has amended its Commercial Companies Law to formally reinforce the Emirati status of companies established in the country, a move aimed at boosting their international competitiveness and access to global markets.

Speaking at a media briefing, Minister of Economy and Tourism Abdulla bin Touq Al Marri clarified that the provision applies strictly to companies themselves and does not extend citizenship or nationality to business owners, shareholders, or investors.

“When a company is established in the U.A.E., it is recognized as an Emirati company,” Al Marri said, stressing that the concept mirrors international practice and is not linked to individual citizenship rights.

The minister said the recognition carries significant commercial and strategic advantages, particularly in trade facilitation, government incentives, and participation in international agreements. 

Emirati companies can benefit directly from the U.A.E.’s Comprehensive Economic Partnership Agreements (CEPAs), which offer preferential access to high-growth markets.

The U.A.E. has concluded more than a dozen CEPAs with countries including India, Türkiye, Indonesia, Israel, South Korea, Cambodia, Georgia, Colombia, and Mauritius, reducing tariffs, simplifying customs procedures, and opening new economic sectors.

Officials said the strengthened Emirati identity is intended to enhance the credibility of U.A.E.-based businesses abroad, support national branding, and position local companies more effectively in cross-border trade and investment.

The amendment applies equally to mainland companies as well as firms registered in free zones and financial free zones, reaffirming that all entities established in the U.A.E. enjoy Emirati corporate nationality.

The changes form part of broader reforms under Federal Decree-Law No. (20) of 2025, which updates the Commercial Companies framework. 

Other measures include allowing multiple share classes, easing company transfers between emirates and free zones, enabling free zone firms to open mainland branches, and introducing non-profit commercial companies.

The Ministry of Economy said the reforms are expected to increase company registrations and licenses by up to 15 percent within the first year, as the U.A.E. continues efforts to attract global investment and entrepreneurship.