The UAE has issued a Federal Decree-Law revising its commercial companies legislation, adding provisions for non-profit firms and more flexible capital structures, the government said Tuesday.
Under the amendment, non-profit companies will be able to reinvest all net profits into their stated objectives rather than distribute them to shareholders, creating a clearer framework for social and development sectors.
The law also permits multiple categories of shares with differentiated rights, including voting, profit distribution, redemption priority and liquidation. Officials said the changes are intended to strengthen corporate governance and encourage private investment.
Private joint-stock companies will now be allowed to offer securities for private subscription on UAE financial markets without converting to public firms, opening a new financing channel.
The decree further establishes rules for relocating companies between emirates and free zones while preserving their legal identity, and formally recognizes mechanisms such as tag-along and drag-along rights.
The official WAM news agency described the law as a major step toward modernizing UAE business legislation, fostering a flexible, innovation-friendly environment and boosting national competitiveness.