New UAE law promotes granting of citizenship to companies - What it means, who it benefits

Dubai: An amendment to the UAE’s Commercial Companies Law is intended to further promote the granting of UAE “citizenship” to companies established in the country, including those in free zones and financial free zones – a move aimed at strengthening their identity as Emirati entities and improving their access to global markets.

Speaking at a media briefing on Tuesday, Abdulla bin Touq Al Marri, Minister of Economy and Tourism, stressed that the provision applies to the company itself, and not to its owners, shareholders or investors.

This clarification followed media questions about whether investors setting up businesses in the UAE could be granted citizenship under the new law.

“When a company is established in the country, the company takes the status of an Emirati company. This already exists,” Al Marri said. “It does not grant citizenship to the owners. The company itself is recognised as a UAE company.”

He added that the concept is in line with global practice. “If you open a company in Germany, you are a German company. If you open a company in the UK, you are a UK company. In the same way, if you open a company here, you are a UAE company,” he said.

Responding to a follow-up question from Gulf News on how Emirati status benefits businesses, Al Marri said the advantages are commercial and strategic, particularly in trade, incentives, and market access.

“When it comes to being an Emirati company – when it comes to trade, when it comes to benefiting from the agreements that have been signed, for instance, the CEPAs – companies can benefit from that,” he said.

“If local governments want to issue incentives for local companies, this covers that as well. There is a lot of benefit in that.”

The UAE has signed more than a dozen Comprehensive Economic Partnership Agreements (CEPAs) with countries including India, Türkiye, Indonesia, Israel, South Korea, Cambodia, Georgia, Colombia and Mauritius, with several more under negotiation.

These deals reduce or eliminate tariffs, ease customs procedures and open up new sectors, giving UAE-based companies preferential access to high-growth markets.

By being recognised as Emirati entities, companies can leverage these agreements more easily, enhance their credibility in international markets and strengthen their positioning in cross-border trade.

By reinforcing companies' Emirati identity, the government said it aims to strengthen national brands, enhance the credibility of UAE-based businesses abroad, and support their expansion into global markets.

“This is about positioning the UAE and UAE companies at the forefront of global trade and investment,” Al Marri said.

Notably, the amendment confirms that the Emirati status applies not only to mainland companies but also to those established in free zones and financial free zones.

“The amendments reaffirm that companies established in the UAE, including in free zones and financial free zones, enjoy UAE nationality,” Al Marri said. “This strengthens the country’s economic identity and global market access.”

The comments were made during a media briefing on Federal Decree-Law No. (20) of 2025, which amends certain provisions of Federal Decree-Law No. (32) of 2021 on Commercial Companies.

The new amendments form part of a broader overhaul of the UAE’s business legislation aimed at making the country one of the world’s most attractive destinations for investment and entrepreneurship.

Key changes include:

The Ministry of Economy expects the changes to boost company registrations and licenses by 10–15 per cent in the first year.