The United Arab Emirates has announced plans to increase the number of registered companies in the country to two million by the end of the decade, underscoring the central role of legal and regulatory reform in shaping the nation’s economic growth strategy.
The target was outlined by Abdulla bin Touq Al Marri, Minister of Economy and Tourism, during a briefing on recent amendments to the UAE’s Commercial Companies Law (CCL) a legislative overhaul that has fundamentally transformed the country’s corporate framework.
Commercial Companies Law: A Structural Legal Shift
The amendments to the Commercial Companies Law, introduced in September 2021, marked a decisive shift in the UAE’s corporate regime. Historically, foreign investors were subject to local ownership requirements in many sectors. The revised law removed these restrictions across a wide range of business activities, permitting 100% foreign ownership and aligning the UAE more closely with global best practices.
From a legal perspective, the reforms have focused on:
- Reducing statutory barriers to market entry
- Simplifying incorporation and licensing procedures
- Strengthening corporate governance and transparency
- Enhancing investor and shareholder protection
These changes have significantly improved legal certainty for both domestic and international investors.
Business Formation Trends Reflect Regulatory Confidence
The legal reforms have translated into measurable outcomes. Between September 2021 and the end of 2025, approximately 760,000 new companies were incorporated in the UAE, taking the total number of active businesses to over 1.4 million.
In 2025 alone, around 250,000 new entities were registered, highlighting the growing confidence of investors in the UAE’s regulatory environment and dispute resolution mechanisms.
Investor Protection and Corporate Governance
One of the most significant legal outcomes of the updated CCL has been the strengthening of governance standards. The amendments introduced clearer provisions on:
- Directors’ duties and liabilities
- Shareholder rights and protections
- Corporate disclosure and accountability
These measures have enhanced the enforceability of corporate obligations and reduced ambiguity in shareholder and management relationships an important consideration for cross-border investors and multinational groups.
Lower Barriers, Stronger Compliance Framework
While the reforms have simplified market entry, they also reinforce the importance of ongoing legal compliance. Companies operating in the UAE must continue to adhere to:
- Licensing and regulatory requirements at the federal and emirate levels
- Economic substance regulations
- Ultimate beneficial ownership (UBO) disclosures
The UAE’s approach balances ease of doing business with a robust compliance and enforcement framework.
UAE as a Regional Legal and Commercial Hub
According to government officials, the UAE’s appeal lies not only in tax efficiency and infrastructure, but also in its predictable legal environment, modern commercial laws, and expanding network of courts and arbitration centres.
As a result, the UAE is increasingly selected as a regional headquarters jurisdiction, particularly for businesses seeking legal certainty, enforceable contracts, and internationally aligned corporate regulations.
With continued legislative refinement and regulatory clarity, the UAE’s ambition to reach two million companies by 2030 reflects a broader objective: to position the country as a global benchmark for business-friendly yet legally robust corporate frameworks.
For investors, entrepreneurs, and multinational corporations, understanding the evolving legal landscape remains critical to successfully establishing and scaling operations in the UAE.
