The amended law reduces the age limit to run a business.
he minimum age requirement to run a business in the UAE has been revised, the Ministry of Economy announced.
The new law requires an individual to be at least 18 years of age to be able to run a business, previously the age limit was set at 21.
The new law amendment is further aligned with international regulations.
Guidelines regarding the recent amendments were published in October 2022 but has now been implemented as a law.
“I think it’s a fantastic initiative to enable young people to operate businesses. Hands-on business experience is the best possible education you can give a young entrepreneur, and the lessons are not ones you can learn in school. As a flourishing business hub, it makes perfect sense that UAE would want to promote this sort of initiative and it makes me so happy to see them doing this,” Ori Leslau, Founder and CEO, Confetti Group told Arabian Business.
According to the amendments to the new law:
- An individual is allowed to start a business at the age of 18 years (previously 21 years).
- Banking institutions are to follow a legal reference for commercial transactions in order to stimulate investment an provide businesses with a broader scope for growth and competition.
- Increased support for Islamic banking, establishing it as one of the main drivers of growth.
- Obtaining licenses according to the regulation and establishment of financial markets is mandatory.
- Support is offered for technology sector businesses and commercial activities related to the digital fields.
Previously, a business started by an individual between 18-21 years had to be registered under a legal guardian as ‘temporary owner’. Once the individual reached legal age, the shares could then be transferred.
