Corporate · Legal glossary
Holding companyIn Arabic: الشركة القابضة
Definition
A holding company is الشركة القابضة in Arabic: a company that forms, owns or controls subsidiaries, as that state’s companies law defines it.
How it varies across the GCC
In Saudi Arabia it is a joint-stock company, a simplified joint-stock company or a limited liability company that forms or owns subsidiaries (Companies Law, article 216). Article 217 states what makes a company a subsidiary. In the UAE it is a joint-stock company or a limited liability company that sets up or controls subsidiaries (Federal Decree-Law No. 32 of 2021, article 268). The other states are under review.
The rules that apply to a specific matter depend on the state, any free zone involved and the current text of the law, so check the official source before relying on them.
Basis by country
| Country | Basis |
|---|---|
| United Arab Emirates | Federal Decree-Law No. 32 of 2021, article 268: a joint-stock company or a limited liability company that sets up or controls subsidiaries. |
| Saudi Arabia | Companies Law, article 216: a joint-stock company, a simplified joint-stock company or a limited liability company that forms or owns subsidiaries. Article 217: what makes a company a subsidiary. |
| Bahrain | Under review |
| Qatar | Under review |
| Kuwait | Under review |
| Oman | Under review |
Sources
Official texts for the points on this page. General information, not legal advice. An article number is cited only where it was verified.
- Saudi Companies Law, art. 216, 217https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/a8376aea-1bc3-49d4-9027-aed900b555af/1
- UAE Federal Decree-Law No. 32 of 2021, art. 268https://uaelegislation.gov.ae/en/legislations/1542