February 23, 2026
Methodology About Newsletter
WE THE UAE 2031
The Vanderbilt Terminal for the UAE's National Transformation
INDEPENDENT GLOBAL INTELLIGENCE FOR THE UNITED ARAB EMIRATES
UAE GDP: AED 2.03T ▲ 5.7% | Non-Oil GDP Share: 84.3% ▼ -5.2pp | FDI Inflows: $45.6B ▲ 48.7% | GDP Growth: 4.0% ▲ -0.3pp vs 2023 | Inflation: 1.7% ▼ +0.0pp vs 2023 | Female Participation: 55.1% ▲ +0.6pp vs 2023 | Population: 11.0M ▲ 4.8% | Emiratisation Rate: 12.5% ▲ 2.1pp | Global Competitiveness: #7 ▲ 3 places | Clean Energy Capacity: 7.2 GW ▲ 18.4% | ADX Index: 9,842 ▲ 4.7% | DFM Index: 4,621 ▲ 6.2% | UAE GDP: AED 2.03T ▲ 5.7% | Non-Oil GDP Share: 84.3% ▼ -5.2pp | FDI Inflows: $45.6B ▲ 48.7% | GDP Growth: 4.0% ▲ -0.3pp vs 2023 | Inflation: 1.7% ▼ +0.0pp vs 2023 | Female Participation: 55.1% ▲ +0.6pp vs 2023 | Population: 11.0M ▲ 4.8% | Emiratisation Rate: 12.5% ▲ 2.1pp | Global Competitiveness: #7 ▲ 3 places | Clean Energy Capacity: 7.2 GW ▲ 18.4% | ADX Index: 9,842 ▲ 4.7% | DFM Index: 4,621 ▲ 6.2% |

Definition

A Limited Liability Company (LLC) is a corporate structure in which the liability of each shareholder is limited to the amount of their capital contribution. The LLC model combines the operational flexibility of a partnership with the liability protection of a corporation. Shareholders are not personally liable for the company’s debts or obligations beyond their invested capital. LLCs are among the most widely used business structures globally due to their balance of protection and simplicity.

UAE Context

The LLC is the most prevalent business entity on the UAE mainland, governed by Federal Decree-Law No. 32 of 2021 on Commercial Companies. Historically, UAE LLCs required a minimum 51 percent ownership stake held by a UAE national or GCC citizen. The 2020 reform eliminated this requirement for most commercial activities, permitting 100 percent foreign ownership of mainland LLCs. Formation requires a minimum of one and a maximum of 50 shareholders. An LLC must obtain a trade licence from the relevant emirate’s Department of Economic Development and may require additional sector-specific approvals depending on the nature of its business activities.

Key Data

  • Governing law: Federal Decree-Law No. 32 of 2021 (Commercial Companies Law)
  • Shareholders: Minimum 1, maximum 50
  • Foreign ownership: Up to 100% in most sectors since 2020
  • Minimum capital: No statutory minimum for most activities
  • Taxation: Subject to 9% federal corporate tax on profits above AED 375,000

Significance for Vision 2031

The modernisation of LLC regulations is fundamental to Vision 2031’s goal of making the UAE a top-tier global business destination. Full foreign ownership of LLCs has significantly boosted FDI inflows and simplified market entry for international companies seeking direct access to the UAE mainland economy, supporting diversification and entrepreneurial growth.