New Commercial Agency Law for 2023 in the UAE – Good news for MNC’s

2 February 2023

New Commercial Agency Law for 2023 in the UAE – Good news for MNC’s

The UAE has recently introduced a new law that brings about significant changes to the commercial agency sector. Foreign multinational companies now have the opportunity to conduct commercial agency activities without the need for registration, protected through agreements between parties. The termination of commercial agency agreements has also become more flexible, allowing for expiry, mutual consent or agreement terms, with compensation for agents.

However, existing registered agencies for 2 years or over 10 years with investment over AED 100 million will be exempt from these provisions for a period of 10 years. This is to ensure stability and protection of investments made in the commercial agency sector.

The new law also emphasizes arbitration as a means of resolving disputes arising from registered agency agreements. The Commercial Agency Committee’s decision will have no significance in arbitration, providing comfort and confidence to foreign principals who are familiar with international dispute resolution mechanisms.

Moreover, the law addresses potential market disruptions in the case of disputes between parties, empowering the Ministry of Economy to provide alternative resources for maintaining supply and demand.

At Guildhall, as the best rated executive search firm in the UAE, we keep ourselves updated with the latest legal developments in the market to provide our clients with the best possible solutions and advice. Our team of experts is always available to assist you in navigating the complex legal landscape of the UAE and help you stay ahead of the curve. Contact us today to learn more about how we can support your business.”

2 February 2023

New Commercial Agency Law for 2023 in the UAE – Good news for MNC’s

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