In this article, Karl Touma, Anthony Saad, and Bharat Rajani explore the key changes introduced by Federal Decree-Law No. 20 of 2025, which amends Federal Decree-Law No. (32) of 2021 on Commercial Companies and reflects a deliberate and sophisticated evolution of the UAE’s corporate legal framework.
Among other developments, the amendments introduce statutory recognition of drag-along and tag-along rights, permit multiple classes of shares within limited liability companies, establish a formal redomiciliation regime across UAE jurisdictions, recognise non-profit companies, and reduce statutory lock-up periods.
Taken together, these reforms materially enhance structuring flexibility, strengthen minority protections, and provide greater transactional certainty, further positioning the UAE as a leading jurisdiction for complex corporate and investment structures.
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