United Arab Emirates UAE
Receive Only The Best Posts Via Email
UAE citizens and publicly traded enterprises with at least a 51% national capital contribution may conduct business with commercial agencies.
The new commercial agency law will apply to all sectors. It will take effect on June 16, 2023, announced the UAE's Ministry of Economy.
The Ministry announced that any international business should be permitted to serve as a commercial agent for its products under specific circumstances and with the UAE Cabinet's consent.
The new draught commercial agency law from the Ministry of Economy, which replaces the previous legislation, aims to speed up the growth of commercial agencies by diversifying operations, enhancing their financial performance, and raising their contribution to the expansion of the national economy.
Any international business, nevertheless, will be able to serve as a commercial agent for its products under specific circumstances and with the UAE Cabinet's blessing, stated the Ministry.
By diversifying their operations, enhancing their financial performance, and boosting their contribution to the expansion of the national economy, commercial agencies are expected to grow faster under the new draught commercial agency law. It replaces the previous 40-year-old legislation.
Abdulla Al Saleh, undersecretary of foreign trade and industry at the UAE Ministry of Economy, emphasized that the significance of the Federal Decree Law on regulating commercial agencies stems from its provisions, which are based on the principle of autonomy/will and that the contract must be ensured.
“This creates an environment that is favorable for investment and safeguards the rights of parties per their agreement,” he said. In addition to that the law would help increase national investments and DFI to the country.
The law will also enable commercial agencies to expand and thrive by diversifying their business ventures, guaranteeing the greatest goods and services for customers while also achieving their goals of offering competitive rates and first-rate services.
Furthermore, the law would provide aftersales services and assurances, as well as create new job opportunities for the country, he added.
Before the law's implementation in June, the UAE Cabinet will impose administrative penalties on violators.
A new protocol has been introduced to resolve disputes between the agent and the client by agreeing on arbitration.
Under the new law, the concurrent agency contract's termination provisions regarding non-renewal or early termination for convenience will not apply immediately.
However, existing agencies with the same agent for more than ten years or where the agent's investment exceeds Dh100 million were given either two or ten years under the law.
However, it is illegal to provide agency services unless the commercial agency is registered in the Ministry of Economy's records.
Furthermore, by the decision of the UAE Cabinet, a commercial agency committee specializing in resolving disputes between registered agency parties will be formed.
For any legal queries or information, contact ask@tlr.ae or call us on +971526443004
تعريف الوعد بالجائزة ( الجعالة): اولا : فقهيا الوعد بجائزة هو تصرف قانوني ينشأ بإرادة منفردة، وهي إرادة الواعد الذي يعلن للجمهور عن جائزة لمن يقوم بعمل معين ، ويعرف ايضا بأنه تخصيص أجر لشخص لن يتعين إلا بتنفيذ الأداء الذي حدده الواعد، كالإعلان عن جائزة لمن يعثر على شيء ضائع او يعلن شخص عن جائزة لمن يصنع دواء لمعالجة مرض مستعص، أو لمن يعثر على أشياء مفقودة...
Following the implementation of a federal corporate tax on business profits, Dubai's media office said that it will consider lowering government fees on commercial operations to further improve the emirate's economic environment. In the wake of the UAE Finance Ministry's announcement on Monday of a 9% federal corporate tax on business profits, Dubai's Department of Finance (DOF) said it is doubling...
Urgent: UAE declares an extra-long weekend for its residents. The human resource and Emiratisation ministry announced a paid holiday for all employees in the country's private sector institutions and companies. The United Arab Emirates is turning 50 on December 2, 2021, which is a huge reason to celebrate. To give residents a chance to celebrate the Golden Jubilee, officials have announced that...
Federal Decree-Law No. 32/2021 On Commercial Companies regulates the management of a company, the law states that a Manager or a member of the board of the Limited Liability Company is a pillar of the company and its most important employee. Article 47 of the Law provides for the dismissal of the manager; the manager may be dismissed by the company's memorandum of association or the employment...
The Vice President and Prime Minister of the UAE and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum has approved a first-of-its-kind law in Dubai to govern virtual assets. Virtual assets including Non-Fungible Tokens (NFTs) and cryptocurrencies now have their own independent body to manage their regulation, licensing, and governance. The Dubai Virtual Assets Regulatory Authority...
Arbitration is a form of Alternative Dispute Resolution (ADR) where disputes can be resolved out of courts. Here the dispute is decided by the arbitrators and the decision becomes legally binding on both parties unless agreed otherwise. This process of arbitration is widely used in commercial proceedings and transactions due to its swift nature in comparison to the general judicial proceedings. Some...