The UAE has amended its commercial companies law to allow private joint-stock companies to offer securities for private subscription on a national financial market, opening new funding avenues without going public.
The move comes as the UAE seeks to boost private capital markets and strengthen its position as a regional investment hub. Private joint-stock firms, previously limited in financing options, can now have capital structure options through multiple categories of shares and stakes, including rights such as voting, profit distribution, priority of redemption and liquidation, the state-run WAM agency reported.
The law also introduces a framework for non-profit companies, clarifies rules for delocalisation and registration across emirates and free zones, and standardizes valuation of in-kind shares.
📌 Why it matters: Companies gain flexible funding tools while investors benefit from stronger governance and protection.
📌 Bottom line: The amendment modernizes UAE corporate legislation, enhances transparency, and boosts economic competitiveness.
