The new companies law has been passed by the UAE cabinet according to a Gulf News report. But the law itself has not yet been published.
Alan Wood of Pinsent Masons, the law firm behind Out-Law.com, said that the approval of the law was "good news" but that its impact will depend on how radical it is. Many would be hoping for significant changes, he said.
"As ever we will have to wait a little longer until the law is made public to see how far the legislators have gone in terms of the changes proposed," said Wood. "Companies will be hoping that the changes will be far reaching to reflect the emergence of the UAE as an international business and trading hub since the existing law was passed back in 1984."
"Whilst the focus of attention for many will inevitably be on what changes, if any, are introduced in relation to the foreign ownership restrictions there will be many other areas like enhanced corporate governance and clearer directors' duties where a modernised law will promote the Emirates further as the regional business hub," he said.
