Market Update: We break down the business implications, market impact, and expert insights related to Market Update: UAE’s New Laws Simplify Free Zone to Mainland Business Operations – Full Analysis.
Non-profit commercial companies
The UAE has also introduced a new legal model – the non-profit commercial company. These entities do not distribute profits to shareholders; they reinvest all earnings into their mission and can be structured as LLCs or private or public joint-stock companies.
Al Kilani said this opens the door for a new category of mission-driven businesses. “This is a very modern concept. The idea is that you can have a commercial company, but the profits are reinvested into the expansion of the business instead of being distributed,” he said. “It is particularly suitable for sectors like education, healthcare, innovation and social impact.”
He added that specific regulations will be issued for non-profit commercial companies, providing tailored rules rather than treating them as conventional for-profit firms. “It will not be subject to the same rules and regulations as a normal LLC. It will be tailor-made, with extra agility,” he said.
The legal overhaul comes as the UAE continues to post strong economic and tourism growth. Nearly 250,000 new companies were registered in 2025, taking the total to more than 1.4 million. Tourism’s contribution to GDP has reached 15 per cent, while non-oil sectors now account for 77.5 per cent of the economy. The Ministry expects overall growth of 5 per cent in 2025.
Bin Touq said the amendments are part of a proactive legislative approach. “We believe these amendments will represent a qualitative leap in corporate governance and business regulation in the UAE,” he said. “They create new attraction factors for local and foreign companies and investments in line with global best practices.”