UAE: Introduces Major Changes to Company Law Framework

The UAE government has issued a new Federal Decree-Law that brings significant changes to the country’s Commercial Companies Law, introducing new corporate structures and modernising business regulations.

Among the key changes is the creation of a new category of non-profit companies, which will be required to reinvest all net profits into their stated objectives rather than distributing them to shareholders. The decree also establishes multiple share categories with varying rights regarding voting, profit distribution, and liquidation priority.

Private joint-stock companies will now be permitted to offer securities for private subscription on national financial markets without converting to public status, subject to regulatory approval. The legislation also outlines procedures for companies to transfer their registration between emirates and financial free zones while maintaining their legal status.

The new law implements modern share management mechanisms, including tag-along and drag-along rights, and establishes clear procedures for handling ownership transitions following a shareholder’s death. Additional provisions set standards for valuing in-kind shares and accrediting appraisers.

The decree introduces specific requirements for company mobility within the UAE’s territories and establishes protective measures for minority shareholders. It also provides detailed guidelines for implementing various corporate governance mechanisms.

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UAE: New Fostering Law

Khaleej Times, 27 November 2025: Federal Decree-Law No. 12/2025 a new fostering law is to reshaping the eligibility criteria for foster families

The law allows expatriates to foster children of unknown parents in the UAE. It also grants the children legal identity and documents, and is expected to reduce the occurrence of abandoned or unregistered children. The amendments are expected to help ensure the preservation-of-identity agreement and protect children from cultural or religious assimilation, which aligns with the UAE’s Constitutional principle of freedom of belief.

It ensures the protection for children of unknown parentage, safeguarding them from neglect, loss, or exploitation, while providing adequate health, psychological, educational, and social care for them.

They grant children legal identity and documentation (such as a birth certificate), which will help support their integration into society. There will now be a clear legal frameworks for foster families, which protects children’s rights and minimises legal disputes.

By widening eligibility to become a foster to include non-Muslims and non-nationals, the law is adaopting a more inclusive and compassionate approach – ensuring that children of unknown parentage have greater access to stable, loving, and protective family environments.

A foster family is a couple the household must consist of a husband and wife who live together in the UAE and both spouses must be residents. Ensure each spouse must be at least 25 years old. They must have no prior convictions involving honour or trust, even if they have been rehabilitated.

They must also be free from infectious diseases or psychological disorders that may affect the child.

In addition they must demonstrate financial ability to support the child and must meet any additional conditions issued by the Ministry or local authority.

A single woman can also apply to foster if she resides in the UAE, is unmarried, divorced or widowed.

They must be at least 30 years old and have no convictions involving honour or trust.

They must also be medically fit, with no infectious or psychological conditions that may affect the child and be financially capable of supporting the child.

They must also comply with any further federal or local requirements.

All applicants must submit a written pledge to provide a stable home environment and are prohibited from influencing the child’s officially documented identity or beliefs. Oversight committees may take any measures necessary to verify compliance, including reviewing the child’s education and other requirements set by authorities.

Local authorities must also provide the Ministry with data, documents and statistics necessary for implementing the decree and its executive regulations.

Custody may be withdrawn if a foster family or woman loses any of the eligibility condition or violates obligations under the law. Withdrawal decisions will be based on social researchers’ reports and cannot be contested.

If there is a minor violation, the committees may impose a corrective plan with specific deadlines; failure to follow it will result in custody being withdrawn under the decree and its executive regulations.

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