The United Arab Emirates (UAE) has made a significant change to its commercial company law. With this amendment, companies established in the country will be officially granted 'corporate citizenship.' However, this citizenship is strictly for the company itself; it doesn't extend UAE citizenship to its owners or investors. Upon acquiring corporate citizenship, a company will be recognized as a UAE firm.
According to Abdulla bin Touq Al Marri, the UAE's Minister of Economy and Tourism, this provision will apply to companies established anywhere within the UAE.
Officials claim this initiative will implement global corporate practices in the UAE. Just as a company registered in Germany is considered a German company, companies registered in the UAE will legally be identified as Emirati companies.
There's confusion among people regarding this law, as some believe that if a company gains citizenship, its owner will automatically be considered a UAE citizen. However, this is not the case.
This provision does not grant UAE citizenship to any company owner, shareholder, or investor. Abdulla bin Touq Al Marri has made it clear that under this law, 'nationality' will only be awarded to the company.
This rule applies to all types of companies formed in the UAE. According to a report in the Times of India, if a foreign company is legally recognized as an Emirati company, it stands to gain numerous advantages, such as:
Strengthened Global Identity:
Being officially identified as a UAE company will boost the company's trust and credibility in international markets.
Benefits from Trade Agreements:
The UAE has comprehensive economic partnership agreements with various countries. These agreements can facilitate tariff reductions and ease cross-border trade for companies.
Local Incentives:
Once granted Emirati status, companies can avail incentives, support programs, and sector-based initiatives usually reserved for domestic companies from local governments.
The government believes this will enable companies to expand globally while maintaining strong ties with the UAE economy.
In recent years, business activities have surged in the UAE, and a significant number of new companies have been registered. The government states that this legal change is intended to support this growth, allowing companies to strengthen their roots in the UAE and become more competitive globally.
Gaining official recognition as an Emirati company will help UAE-based firms benefit more from trade agreements, attract investments, and compete effectively in international markets. This move is part of UAE President Sheikh Mohammed bin Zayed Al Nahyan's efforts to bolster the UAE's image as a global business hub.
Every year, hundreds of Indian companies seek promising markets and turn towards the UAE. Dubai, the UAE's largest city and business hub, has established three business chambers, one of which, the Dubai Chambers of Commerce, reported last month that Indian companies are leading in joining it.
According to the chamber, 13,851 Indian companies joined within the first nine months of 2025. With this in mind, it can be expected that the UAE's new regulations will benefit these Indian companies.
