Market Update: We break down the business implications, market impact, and expert insights related to Market Update: Citizenship for Companies and Its Benefits – Full Analysis.
How does Emirati status benefit companies?
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.”
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.
Applies to mainland and free zone companies
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.”
Part of wider company law reforms
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.
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Allowing multiple classes of shares in LLCs and joint stock companies
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Permitting companies to transfer their registration between emirates and free zones without losing legal identity
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Introducing more explicit rules for shareholder exits, mergers and acquisitions
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Allowing free zone companies to open branches on the mainland
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Introducing non-profit commercial companies
The Ministry of Economy expects the changes to boost company registrations and licenses by 10–15 per cent in the first year.
Dhanusha is a Chief Reporter at Gulf News in Dubai, with her finger firmly on the pulse of UAE, regional, and global aviation. She dives deep into how airlines and airports operate, expand, and embrace the latest tech.
Known for her sharp eye for detail, Dhanusha makes complex topics like new aircraft, evolving travel trends, and aviation regulations easy to grasp. Lately, she’s especially fascinated by the world of eVTOLs and flying cars.
With nearly two decades in journalism, Dhanusha’s covered a wide range, from health and education to the pandemic, local transport, and technology. When she’s not tracking what’s happening in the skies, she enjoys exploring social media trends, tech innovations, and anything that sparks reader curiosity. Outside of work, you’ll find her immersed in electronic dance music, pop culture, movies, and video games.