His Highness Sheikh Khalifa Al Nahyan enacted UAE Federal Law No (2) of 2015 governing the establishing of commercial companies in the UAE. The new law is a departure from the previous corporate governance system regulating commercial companies in the UAE, and is a testament to the UAE leadership’s commitment to modernize the private sector, in line with the UAE’s national agenda and vision for achieving its strategic economic development objectives for 2021.
The main aim for passing UAE Federal Law No (2) of 2015 is to enrich and diversify the UAE economy in order to compete on a regional and global level, and to enhance the way in which commercial companies operate in the UAE. The idea is that greater transparency and clarity in the system will naturally result in an increase in investor confidence in the UAE market, the ultimate objective of which is to attract a larger volume of foreign investment into the UAE.
Under the auspices of the new UAE Federal Law No (2) of 2015 the current system of corporate governance will be tailored to align with the leading global economic hubs. Improvements will be made to current corporate practices, and individuals will be encouraged and empowered to set up businesses. The transparency provided for by the new law will work to advance the UAE’s global economic standing.
Authored by: Karam Chehade