The most liberal commercial agency law of the gulf hundt legal. Consumer protection the official portal of the uae. Pursuant to the uae commercial agencies law federal law no. Unlike the situation under uae agency law a foreign producer has always been able to appoint two or more agents or distributors in saudi arabia, even for the. Email category message rate this page poor neutral good excellent. The agency law only applies if the agency agreement is registered with the uae ministry of economy. Issuing the commercial transactions law we zayed bin sultan al nahyan, president of the united arab emirates. The provisions relating to commercial agencies are collectively set out in federal law no. The commercial agency, even though it has a general power of attorney, shall. Fill in the blanks and choose the terms of this international agreement that best suit your needs. The uae federal arbitration law, 2018 publications. International commercial agency agreement template download international commercial agency agreement sample in word format. Each of these business structures other than setting up in a.
The relationship between the principal and a local agent is regulated by federal law no. In the uae, the concept of franchising can fall within the context of the uae agency law if the franchise agreement is registered as per the requirements of federal law no. Dubais legal system 5 the uae federal constitution 7. It is only when the contractual relationship breaks down that the significance of this becomes apparent. Commercial agencies law pursuant to the uae commercial agencies law federal law no. Breakdown of commercial agency law in the uae 10 april 2018. The laws are principlebased, allowing for the creation of. Business regulations the official portal of the uae. It applies to commercial agencies and distributorships alike. The uae commercial agency law federal law 18 of 1981 has strict requirements that govern the relation between the commercial agent and the principal. However, a precondition for the uae commercial agency law to take effect is the registration of the contractual relation between the principal and the agent with the. An agency agreement is a fiduciary relationship between two parties, involving a principal first party and an agent second party and is often used by foreign companies wishing to trade onshore in the uae as it requires comparatively lesser investment and.
The respondent argued that the lower courts decision contradicted provisions of article 6 of the commercial agency law. This guide does not attempt to provide an exhaustive analysis of every aspect of doing business in the uae. Drawing on our unparalleled experience in the middle east, this manual is intended to offer a simple but comprehensive guide to understanding the legal framework and environment for doing business in the uae. Agent must be uae national or a company wholly owned by uae nationals per article 2 2. For any feedback about dubai ded services please click here. This law shall be published in the official gazette and shall operate three months after the date of its publication.
Work is a right of the united arab emirates nationals. Commercial agency and distribution agreements in the uae are regulated by the uae agency law federal law 18 of 1981, as amended. The agencies law is the primary source of law in the united arab emirates uae governing commercial agencies. Article 6 provides that in commercial agency agreements the states courts shall rule in any disputes which may arise between the principaland the agentdue to its implementation. These include the agents exclusive right to market and sell a particular product in one or more of the emirates. The basic premise for carrying out business in kuwait is identified in the articles 23 and 24 of the kuwaiti commercial code. Click to automatically attach a screenshot of this page. Commercial agencies in the kingdom of saudi arabia. However, a precondition for the uae commercial agency law to take effect is the registrati on of the contractual relation between the principal and the agent. Characteristics of the commercial agency law of the united arab. Unregistered agreements do not attract the protection of the agency law. Commercial agency agreement must be registered in the.
Uae federal law 5 of 1985 on the civil transactions law. A commercial agency is defined in the agencies law as the representation of a principal by an agent for the purpose of distributing, selling, offering or providing merchandise or services inside the uae for a commission or profit. Employment of workers children and women section i. In the international agency agreement, one party asks other party, either a person or a. Turkey blocks news websites in saudi arabia and uae the. General overview agencydistributorship agreements in oman are governed by law of commercial agencies promulgated by rd 2677 and the amendments thereto cal contained in rd 7396, rd 662005, and rd 342014. Article 10 in the event of nonavailability of national workers, preference shall be given to. General overview agency distributorship agreements in oman are governed by law of commercial agencies promulgated by rd 2677 and the amendments thereto cal contained in rd 7396, rd 662005, and rd 342014. According to the law, uae consumers are granted the following rights. Employment of workers article 9 work is an inherent right of the nationals of the united arab emirates. A guide to setting up a business in the uae the legal requirements 3 once registered, the agency agreement is given substantial protections under the uae commercial agencies law. In this article, we will highlight some of the areas that a foreign based principal shall consider when contemplating appointing a uae based agent or distributor. The civil transactions in the united arab emirates state shall be subject to the law, whereas the commercial transactions remain subject to the laws and regulations applicable in their regard, pending the issuance of the federal commercial law. We, khalifa bin zayed al nahyan, president of the united arab emirates, pursuant to the perusal of the constitution.
In the event of a dispute the commercial agencies committee, shall first investigate and if necessary appoint an expert to resolve the dispute. Mar 19, 2020 business regulations related to mainland companies. The commercial companies law promulgated by decree no 28 of 1975 shall be repealed as well as any other provision in conflict with the provisions of the attached law. The successful registration will result in the full and binding applicability of the commercial agency law, including its substantial protective rights for commercial agents. However, any business wishing to enter the uae market must consider the impact of the applicable uae commercial agency regime. We zayed bin sultan al nahyan, president of the united arab emirates. In 20, the said law came into force, aiming to curb anticompetitive practices and regulate economic concentrations.
Relationship must be exclusive either as to a specific products s andor territory, per article 5 3. The uae commercial agencies law regulates the appointment of commercial agents, distributors, and sales representatives in the uae. The article is focused on the agency law of kuwait, the types of agencies, the requirements to assign an agent and the legal procedures to do that step by the commercial law of kuwait. The agency law does not make any distinction between agency, franchise or distribution agreements. Uae agency law impacts upon many different aspects of commercial life in the united arab emirates. Commercial companies law update j u n e 2 0 1 7 in brief t he u a e m i n i s t r y of e c on om y ha s i s s u e d r e s ol u t i on no. For instance, the commercial agent must be a uae national or a legal entity 100% owned by a uae nationals and the agreement between the agent and the principal must be attested notarized. The united arab emirates uae law does not distinguish between an agent and distributor, referring to both as commercial agents. Jan 10, 2012 in the uae, the concept of franchising can fall within the context of the uae agency law if the franchise agreement is registered as per the requirements of federal law no. The commercial agency is an arrangement, wherein a foreign company is represented by an agent to sell, distribute, offer or provide goods or services within the uae for a commission or profit. Registered commercial agency is exclusively reserved to citizens of the uae and legal persons that are held exclusively by nationals of the uae. Internet users in turkey trying to access the sites of saudi news agency spa, the uae s wam news agency and more than a dozen other sites saw a message saying that they were blocked under a law.
Breakdown of commercial agency law in the uae germela law. How dubai works 6 7 dubais legal system dubais legal system is founded upon civil law principles most. These types of arrangements can provide a foreign business with invaluable local experience and knowledge allowing it to benefit from preexisting relationships that an agent may have with other local businesses. And the commercial agency law promulgated by decree no. Many companies engage sales representatives or other agents without considering whether or not the sales representativeagent is a commercial agent. Federal law of 2006 in regards to uae agency law was changed and repealed in 2010, but there was a reinstatement of federal law 18 of 1981. Uae enacted new federal law no 2 of 2015 concerning commercial companies ccl2015 which came into effect on 1st july 2015 and replaced federal law no.
Since the uae legislation does not contain any provision specifically addressing the question of which law governs the agency relationships, and the rome i regulation has excluded from its scope the question of whether an agent is able to bind a principal, this thesis endeavours to. Zayed bin sultan al nahyan president of the united arab emirates enacted at the presidential palace in abu dhabi on 21 rabie al awal 1414 a. The amending law varies the termination and renewal provisions of the agencies law and establishes a committee to hear disputes arising in respect of commercial agencies. Compulsory changes required to memoranda and articles by june 2016 november 2015 in brief following the adoption of the new commercial companies law new ccl on 1 july 2015, all uae. Commercial agency law in the uae corporatecommercial law. Although the uae agency law requires that the registration of commercial agency contracts, and stipulates that any unregistered commercial agency will not be recognized under the law, and no case can be heard by the state courts in respect of this agency article 3 of the uae commercial agency law, practically speaking considerable number of. The commercial agencies law as enacted by royal decree no. International commercial agency agreement sample template. An agency agreement is a fiduciary relationship between two parties, involving a principal first party and. Non nationals may not engage in any work within the state except in accordance with the conditions stipulated in this law and its executive orders. As set out in more detail in a number of previous articles in law update, the registration of a uae agent in the commercial agencies register established by the ministry of economy ministry, places an agent in a very strong position. A n agency agreement is a legal contract which creates a fiduciary relationship between two parties, whereby the first party the principal agrees that the actions of the second party the agent binds the principal to later agreements made by the agent, as if the principal himself, had personally created the agreements.
Characteristics of the commercial agency law of the united arab emirates there are various methods to develop new markets. Business regulations related to mainland companies. After much anticipation, on the 3rd of may 2018, his highness sheikh khalifa bin zayed al nahyan, the president of the united arab emirates, issued federal law no. May 10, 2011 uae cabinet resolution no 3 of 2011, concerning the commercial agency committee, was issued in march 2011 the resolution to supplement the amendments to the agency law federal law no 2 of 2010 as amended issued last year. Others may not by employed in the united arab emirates except as provided for in this law and its executive orders. Uae companies law update from pwc legal middle east. Choice of law in respect of agency relationships in the european union and the united arab emirates ali aljasmi a thesis submitted for the degree of doctor of. Commercial agency under uae commercial agency law marina. Uae courts jurisdiction in commercial agency agreements al.
Business can successfully be done by exporting products into the foreign country, by setting up a company or by taking advantage of appointing a commercial agent or distributor both referred to as agent. Apr 10, 2018 the agency law requires some conditions to be fulfilled for it to apply to the specific party. Uae commercial agency law a detailed insight sta law firm. Uae courts jurisdiction in commercial agency agreements. The uae agency law is a federal law which is applicable throughout uae and grants following rights to the commercial agents. The arbitration law has been longawaited by uae legal practitioners. Uae cabinet resolution no 3 of 2011, concerning the commercial agency committee, was issued in march 2011 the resolution to supplement the amendments to the agency law federal law no 2 of 2010 as amended issued last year. A significant development for arbitration in the uae. Recent changes to the uae commercial agencies law taylor. Commercial agencies are governed by the federal commercial agencies law, federal law no. Business regulations the official portal of the uae government. The uae agency law regulates these commercial agency and distribution agreements in the uae as per the amended federal law 18 of 1981 commonly known as agency laws. M5 dated 110689h corresponding to 25081969 and its implementing regulations the agency law establishes a comprehensive framework that governs the relationship between the ksa agent and foreign principal.