The United Arab Emirates (UAE) has taken a significant step towards bolstering its business landscape with the implementation of the new commercial agencies law in June. This law represents the UAE’s dedication to creating a business-friendly environment for both local and international investments, with the aim of doubling its gross domestic product by 2031. According to the Minister of Economy, Abdulla bin Touq, these changes are expected to have a profound impact on the country’s economy, fostering investor confidence, economic diversification, and a more inviting atmosphere for businesses to thrive.

The updated law, Federal Decree Law No. (3) of 2022, replaces the previous legislation that had been in place for four decades. The UAE has been actively pursuing reforms to enhance its ease of doing business, attract foreign investors, generate employment opportunities, and reduce its reliance on oil. Initiatives such as allowing 100% foreign ownership of companies, easing visa restrictions, supporting small and medium-sized enterprises, and implementing transparency laws for investors have already been put into action. Furthermore, the UAE is striving to attract Dh550 billion ($149.7 billion) in foreign direct investment (FDI) by 2030, with a long-term goal of reaching Dh1 trillion by 2051.

One notable aspect of the new commercial agencies law is its expansion of the types of companies that can serve as registered commercial agents, further encouraging business growth and investment in the UAE.