The UAE's New Companies Law: Key Strengths for Investors

The UAE’s new Companies Law marks a significant shift in the country’s business and legislative landscape, aimed primarily at enhancing the flexibility and competitiveness of the investment environment in line with global best practice.

Multiple Share Classes and Start-Up Financing

One of the most notable changes allows limited liability companies and joint-stock companies to issue multiple classes of shares and interests, with differing voting rights and dividend entitlements — a significant benefit for financing growth-stage start-ups.

New Structures and Cross-Border Flexibility

For the first time, the law introduces the concept of “non-profit commercial companies” that reinvest their profits, alongside new legal mechanisms that allow foreign and domestic companies to relocate their legal seat smoothly, without affecting their legal personality.

Stronger Protection for Investors and Shareholders

The law also strengthens protections for investors around succession planning and shareholder exits, formalising drag-along and tag-along rights, and reducing the lock-up period for shares in private joint-stock companies to just one year — improving liquidity for investors.

Structuring Your Company Under the New Law

Whether you are forming a new company, restructuring, or planning a shareholder exit, our Corporate & Investment Law team can help you take full advantage of the new Companies Law. Speak with our team to review your options.