New UAE Commercial Companies Law and Related Regulatory Changes

A new UAE Commercial Companies Law has been issued and will be in force by the beginning of July. This marks the culmination of six years of legislative process during which there has been much debate about which aspects of the existing companies legislation should change, particularly around foreign ownership restrictions. In the end, the existing rules on foreign ownership have not yet been amended and while the basic framework of the UAE companies legislation remains unaltered, the new law does introduce a number of significant changes which are summarised in this alert memo.

The new law is intended to modernise UAE company law to make the UAE more competitive internationally, and includes amendments designed to facilitate IPOs and other fundraisings, the introduction of a new takeover regime, changes to share capital and maintenance of capital rules (including a prohibition on financial assistance), amendments to facilitate security and restructurings, new company types and ownership rules to ease group structuring and promote entrepreneurship, simplifications to company management and enhancement of corporate governance and shareholder protection rules.

Should you have any questions about the New CCL, please get in touch with your regular contacts at the firm or, in the Abu Dhabi office, Gamal Abouali, Chris Macbeth, or Lynn Ammar.