Introduction
Memorandum of associations (MOA) are some of the most critical business documents produced in the initial stages of a company's life, and it contains many fundamental elements and information concerning the entity. It is also essential as it is a critical document that used for many further future activities. This document is one used internationally, and this is very much the case in the UAE. The UAE has recently implemented a new regulation which stipulates that all MOEs must ensure they observe. The requirement is that the MOE must be written or available in Arabic.
Law Number 7 of 2018
The primary language of the UAE is Arabic, and so it would make sense to have this as a rule. There are already numerous documents which are required in Arabic, though until recently the MOA could be either English or Arabic.
The UAE has a huge number of expats, especially when comparing the amount to the number of nationals found within the country. There are thousands of entities that have been formed or brought in through the expats, and when taking this into account, English would be the second language.
However, the new Decree-Law Number 7 of 2018 has now made it clear that Arabic will be the only language acceptable. This law amends the previous Law Number 2 of 2015 which concerned Commercial Companies. It is Article 2 of the 2015 regulation which has been seen to require a change.
The law states that if the MOA initially is formed in a different language other than Arabic, an Arabic version is to be drawn up, and that is the version that is to be used, and within the UAE, it is the version that will be applicable or the one that will be intended if requested at any point.
According to the decree, the MOA then has to be attested by the appropriate authority, and in some cases may require attestation from a notary public.
This decree will come into place as from the date of its inclusion in the Official Gazette.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
