The UAE has reached a major business milestone, with more than 1.4 million companies currently operating across the country, underscoring its rapid rise as a global hub for entrepreneurship and investment, Minister of Economy and Tourism Abdulla bin Touq Al Marri said on Wednesday.

Speaking at a media briefing on Federal Decree-Law No. 20 of 2025, which amends the Commercial Companies Law, Bin Touq said the reforms are designed to future-proof the UAE’s business ecosystem and align it with global economic trends. The amendments update 15 articles of the law and introduce a new provision allowing companies to transfer their commercial registration across emirates, free zones, and financial free zones without losing their legal identity, contracts, or obligations.

“This is a pivotal milestone that reinforces the UAE’s position as one of the most competitive and flexible business environments regionally and globally,” Bin Touq said. He added that the law introduces unprecedented legislative tools that support growth, sustainability, and long-term investment.

The amendments allow multiple quota and share classes for limited liability companies, as well as public and private joint stock companies, giving founders and investors greater flexibility in structuring ownership, financing, and exit strategies. Bin Touq noted that the UAE is among the first countries in the Middle East to allow multiple quota classes for LLCs—a feature that remains restricted to joint stock companies in many markets. The law also permits companies to convert between different legal forms, including cooperatives. It strengthens the alignment between federal legislation and free zone regulations, thereby reducing compliance costs and improving the ease of doing business.

Since the Commercial Companies Law came into force in September 2021, around 760,000 new companies have been established, bringing the total number of registered companies to more than 1.4 million—a 118.7% increase compared to mid-2021. About 250,000 new companies were established in 2025 alone, while SMEs owned by UAE nationals grew by 63% over the past five years. Company registrations and licenses are expected to increase by 10–15% within the first year of implementing the new amendments.

The momentum extends beyond company formation. In 2025, the UAE registered 37,794 national and international trademarks, with total trademark registrations increasing by 74% over the previous four years. Intellectual property filings reached 3,595 works, marking 124% growth over the same period, highlighting the growing depth of the country’s innovation ecosystem.

Tourism has also emerged as a major economic driver. Its contribution to GDP climbed to 15% in 2025, up from 6% in 2021, reaching a total value of AED 291 billion. This represents nearly 216% growth over four years, reflecting the sector’s expanding role in the national economy.

Looking ahead, the UAE economy is expected to grow by 5% in 2025, supported by the continued expansion of non-oil sectors, which accounted for 77.5% of GDP by the end of the first half of 2025. Bin Touq said these gains are rooted in the country’s flexible economic policies and forward-looking legislation, aligned with the “We the UAE 2031” vision to position the UAE as a global leader in proactive regulation for new economy sectors.