ABU DHABI, Dec. 9 (Xinhua) -- The United Arab Emirates has issued a Federal Decree-Law updating its commercial companies law, introducing non-profit companies and more flexible capital structures, the government's media office announced Tuesday.

Under the amendment, non-profit companies can reinvest all net profits into their stated objectives instead of distributing them to shareholders, providing a clearer legal framework for social and development sectors.

The law also allows multiple categories of shares with differentiated rights, including voting, profit distribution, redemption priority, and liquidation, strengthening corporate governance and encouraging private investment.

Private joint-stock companies may now offer securities for private subscription on UAE financial markets without converting to public firms, creating a new financing channel.

The decree also sets rules for relocating companies between emirates and free zones while preserving legal identity, and recognizes mechanisms such as tag-along and drag-along rights.

The official WAM news agency described the law as a major step in modernizing UAE business legislation, fostering a flexible, innovation-friendly legal environment, and boosting national economic competitiveness. Enditem