According to the changes proposed in the draft Commercial Agency Law, public joint-stock companies with at least 51% of national capital contribution can now be registered to act as commercial agents. While the position under the old law allowed only UAE nationals to act as commercial agents, the new proposed federal law broadens its scope to include public joint-stock companies with at least 51% of national capital contribution as well.

These changes were announced by H.E. Abdullah bin Touq Al Marri, Minister of Economy, as the Federal National Council (FNC) is currently reviewing the new draft law. "Only UAE nationals can act as commercial agents, which is similar to the position under the old law, but the new draft law gives the right for public joint-stock companies and public legal entities with at least 51% national capital contribution to register commercial agencies", the minister told the Emirates News Agency (WAM). 

The Minister further noted, "Now that 40 years have passed since the original law was drafted, only 6,000 commercial agencies have been registered, which is a modest figure considering the current economic potential boasted by the UAE and the conducive business environment in the country".

As per the prevailing law on commercial agencies, restrictions are imposed on the cancellation of commercial agencies even after the expiry of the agreement from which the agency is derived. Under the new proposed federal law, the agency contract terminates on the expiry of the contractually agreed term. This new draft law not only eradicates a crucial anomaly but also opens more opportunities for citizens to access the commercial agencies’ business.

"The core reasoning behind the new law concerns boosting the country’s competitiveness while ensuring alignment with international business standards," the minister said.

As far as the new draft laws on cooperatives are concerned, the minister said that it would allow for the establishment of various forms of cooperatives in the country to benefit from the economic and development opportunities offered by this vital sector with a view to enhancing its contribution to the GDP.

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