UAE grants ‘corporate citizenship’ to all locally registered companies under new law

The UAE has introduced a landmark update to its business framework with the formal recognition of “corporate citizenship” for all companies established in the country, marking a major shift in how businesses are legally positioned on the global stage.

Announced in January 2026 by the Ministry of Economy and Tourism, the change forms part of the updated Commercial Companies Law (Federal Decree-Law No. 20 of 2025) and applies across the entire corporate ecosystem.

What corporate citizenship means

Corporate citizenship refers to the legal nationality of the business entity itself, not the individuals who own or manage it. Under the new framework, any company registered in the UAE is now officially recognized as an Emirati company, similar to how businesses registered in Germany or France are considered German or French entities.

The status applies broadly to mainland companies, free zone entities, and financial free zones such as DIFC and ADGM. Authorities have explicitly clarified that this change does not grant UAE citizenship, residency, or passport rights to foreign shareholders, investors, or owners.

Strategic benefits for businesses

The introduction of corporate citizenship is designed to strengthen “Brand UAE” and enhance the country’s appeal as a global business hub.

Companies stand to benefit from preferential trade access, as Emirati status allows firms to more easily leverage the UAE’s Comprehensive Economic Partnership Agreements (CEPAs). These agreements offer reduced tariffs and simplified trade flows with key markets, including India, Türkiye, and South Korea.

The move also enhances global credibility, giving UAE-registered companies stronger recognition and trust in international markets. This can support overseas expansion, partnerships, and cross-border operations.

At the domestic level, Emirati corporate status may enable businesses to qualify for government incentives, support schemes, and sector-specific programs that are typically reserved for national entities.

Another major reform introduced under the law is corporate mobility. Companies are now allowed to re-domicile between the mainland and free zones without losing their legal identity, contracts, or corporate history, reducing friction for growing or restructuring businesses.

Part of broader 2026 legal reforms

Corporate citizenship is one element of a wider overhaul aimed at modernizing the UAE’s business environment. Other key reforms include the ability to issue multiple share classes with different rights, enhanced shareholder protections such as drag-along and tag-along rights, and the introduction of a new legal structure for non-profit commercial companies that reinvest profits into their mission.

The law also explicitly allows free zone and financial free zone companies to open onshore branches, enabling them to serve the wider UAE market more seamlessly.

Together, these reforms reinforce the UAE’s ambition to position itself as one of the world’s most flexible, credible, and competitive jurisdictions for global business.