In a move aimed at strengthening its position as a global business hub, the United Arab Emirates has introduced a major legal update that formally defines the national identity of companies operating in the country.
Under changes to the UAE’s Commercial Companies Law, businesses established in the country will now be granted “citizenship” status at the corporate level. This does not mean that owners, founders, or investors receive Emirati citizenship. Instead, the legal identity of the company itself is recognised as Emirati under the law.
Abdulla bin Touq Al Marri, Minister of Economy and Tourism, clarified that the provision applies to all companies incorporated anywhere in the UAE. This includes businesses operating on the mainland as well as those set up in free zones and financial free zones. As a result, firms based in centres such as Dubai International Financial Centre and Abu Dhabi Global Market will also be recognised globally as UAE companies.
Officials stressed that the concept mirrors international practice. Just as a company registered in Germany is treated as a German company, firms registered in the UAE will now carry an official Emirati corporate identity. Authorities also addressed early confusion around the move, making it clear that the “nationality” applies only to the legal entity and not to individual shareholders or foreign owners.
The corporate citizenship provision is part of a broader reform under Federal Decree-Law No. 20 of 2025, which comes into effect as part of the Corporate Law 2026 framework. The update is intended to align the UAE with global standards and strengthen the “Brand UAE” label for goods and services produced in the country.
For companies, the change brings several practical advantages. Official recognition as a UAE company can enhance global credibility and trust. It also allows firms to more easily benefit from the UAE’s Comprehensive Economic Partnership Agreements, which help reduce trade barriers and tariffs. In addition, companies may qualify for incentives and support programmes offered to domestic entities.
The updated law also introduces other reforms, including multiple share classes for LLCs and joint stock companies, flexibility to move registrations across emirates or free zones without losing legal identity, clearer rules for mergers and acquisitions, and new options to form non-profit commercial companies.
With hundreds of thousands of businesses launched in recent years, the UAE aims to use this legal update to support long-term growth, attract global investment, and reinforce its reputation as a competitive international business destination.
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