UAE Law Promotes Granting of ‘Citizenship’ to Companies to Strengthen…

Sarah J · 2026-01-07T14:38:51.000Z

The United Arab Emirates has introduced a new amendment to its Commercial Companies Law in 2026 that promotes granting “citizenship” status to companies incorporated in the country - a move designed to reinforce the identity of businesses as Emirati entities and boost their competitiveness on the global stage. The provision applies to the company itself, not to its owners, shareholders or investors, clarifying that it does not grant personal nationality to individuals. UAE officials say the measure aims to position corporate entities more strategically in international trade and investment networks. According to Abdulla bin Touq Al Marri, UAE Minister of Economy and Tourism, the policy aligns with global norms where a business registered in a country is recognised as belonging to that country similar to how companies in Germany or the UK operate under national status. The idea is to strengthen UAE corporate identity and expand the reach of domestic companies beyond regional markets. One of the key benefits of this “corporate citizenship” is enhanced access to trade agreements, such as the UAE’s Comprehensive Economic Partnership Agreements (CEPAs) with countries including India, Türkiye, Indonesia, Israel and South Korea. Recognised as Emirati businesses, companies may better leverage preferential terms like reduced tariffs, streamlined customs processes and expanded market access under these agreements. This could significantly improve their competitiveness in high-growth markets. The amendment applies to companies established on the mainland, in free zones and financial free zones, reinforcing a unified legal identity across jurisdictions. This reform is part of broader business-friendly changes under Federal Decree-Law No. 20 of 2025 that also include flexible share structures, streamlined mergers and acquisitions rules, simpler exits for shareholders and increased ease of re-domiciliation. Authorities expect these reforms to boost company registrations and licenses by 10–15 percent in the first year, further promoting the UAE as a global business hub. By consolidating legal identity, trade benefits and incentives, the UAE’s corporate citizenship initiative aims to attract more businesses, enhance international credibility and establish the country as a preferred base for global trade, investment and entrepreneurship. #StartupEuropeIndiaNetwork #India #Tech #MarketExpansion #Science #AI #Infrastructure #UAE #CorporateLaw #BusinessIdentity #GlobalTrade #EconomicPartnership #CEPAs #TradeAgreements #FreeZones #InvestmentClimate #BusinessInnovation #Entrepreneurship #BusinessGrowth

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UAE Law Promotes Granting of ‘Citizenship’ to Companies to Strengthen… | SEINET