Bin Touq and Abdullah Sultan bin Awad Al Nuaimi on Commercial Transactions Law
H.E. Abdulla bin Touq Al Marri, Minister of Economy, confirmed the UAE’s keenness to enable legislations that support the development of the business environment and its prosperity in the country, in line with the new economic model, which is founded on the principles of knowledge and innovation. This is in accordance with the vision of the wise leadership, the ‘Principles of the 50’, and pillars of the UAE Centennial 2071.
“The Federal Law No. (50) of 2020 concerning the Commercial Transactions, offers a perspective and integrated legislative base that will strengthen the UAE’s leadership position in formulating progressive development policies and creating a business environment that is in line with the country’s knowledge-based economic model. As the business sector is a major contributor to the country’s development, all necessary facilitations will be made available to encourage its prosperity and increase its contribution to the growth of GDP. In light of this vision, a law was established to assist the diversification of the country’s economic activities and strengthen its position as an ideal destination for foreign investments.”
Bin Touq added: “The law enhances women’s participation in economic and business activities and strengthens their role as contributors to the sustainable economic growth of the country. The law also supports Islamic banking as one of the primary pillars for growth and aims to increase the youth’s engagement by lowering their legal age of eligibility to practice business to 18 years. In addition, the law supports business activities that use the latest technological innovations supporting the country’s goals of transitioning to new economic sectors. This will improve the UAE’s ranking in the pertinent economic competitiveness indicators and contribute to increasing the flexibility of the national economy.”
He further emphasized that the Ministry of Economy will keep working to support the law’s outcomes in collaboration with regional and international strategic partners as the law marks a significant advancement in meeting the country’s aspirations for the next 50 years.
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For his part, H.E Abdullah Sultan bin Awad Al Nuaimi, Minister of Justice, stated that the new Commercial Transactions Law promulgated by Federal Decree Law No. (50) of 2022 came to create a modern legislative environment that stimulates investment and attracts entrepreneurs in the commercial sector to conduct their business and investments in the UAE. The new law adopts advanced and flexible legislative mechanisms and keeps pace with the modern reality of real and virtual businesses.
Al-Nuaimi added that the new Law aims at achieving sustainable development in the commercial transactions sector, which supports the UAE’s economic climate stability and acts as a factor for attracting more foreign direct investment and thus helps Economic diversification and boosting the commercial capital cycle while assuring the UAE’s position as a dynamic business hub on the regional and international levels.