“In total, amendments were made to more than 40 laws with an aim to further enhance the economic environment. The move puts in place proactive legislative frameworks that drive long-term economic growth in the country over the next fifty years of the UAE,” Abdullah bin Ahmed Al Saleh, Undersecretary of the Ministry of Economy, said at a media briefing.
The three laws that have undergone extensive amendments include:
- Commercial Companies Law
UAE’s Commercial Companies Law (CCL) has been amended to enhance the openness of the business climate in a way that supports national competitiveness and dynamism. This creates a dynamic and advanced investment environment that allows investors to implement vital projects for the economy, increase foreign company interest and attract foreign investment to the country’s main sectors, the ministry said.
Under the revised CCL, the founders’ contribution to the company’s capital is no longer limited by a maximum or minimum % and the subscription period is revoked. This law eliminates the requirement for the nationality of board members and entails the election of board members according to the terms and conditions set by the competent authority.
The CCL allows companies to determine the face value, as well as to determine the percentage of the offering and to find financing solutions through other types of shares.. It also allows branches of foreign companies licensed in the country to become commercial companies with UAE citizenship.
- Commercial Register Law
Through the revamped Commercial Register Law, the Economic Register will become a comprehensive source of information on economic activities in the country which will help investors and companies build their businesses on accurate, documented, integrated and comprehensive information.
- Trademark law
The new Trademark law provides integrated trademark protection and new mechanisms to boost government work efficiency and effectiveness, leading to faster adoption of new concepts and innovative methods for a more competitive trademark and intellectual property system.
Reforms contribute to the development of the legislative structure and the creation of an investment-friendly legislative environment, one of the most important factors for determining the attractiveness of a country to investment.
A comprehensive review of the revised amendments resulted in 51 articles being replaced, three new articles being added, and one article being deleted, making a total of 55 updates. The updates include a number of new provisions that support the shift towards the new economic model in the country. These provisions are in accordance with the principles of economic openness and flexibility, the Ministry of Economy said.