UAE Commercial Agency - UAEinteract

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The following conditions apply to commercial agencies:
o Commercial agents must be UAE nationals or companies incorporated in the UAE and owned entirely by UAE nationals.
o Commercial agents must be registered with the UAE Ministry of Economy and Commerce to engage in commercial agency activities.
o The agency agreement must be registered in order for the agent to avail himself of the protections afforded under the law and to have the agency relationship recognized under UAE law.
o Commercial agents are entitled to an exclusive territory encompassing at least one emirate for the specified products. (Article 5(1) of the Commercial Agencies Law)
o Unless otherwise agreed, commercial agents are entitled to receive commissions on sales of the products in their designated territory irrespective of whether such sales are made by or through the agent. (Article 7 of the Commercial Agencies Law)
o Commercial agents are entitled to prevent products subject to their agency from being imported into the UAE if the agent is not the consignee.
o Commercial agents are entitled to receive compensation from the principal if the agency is terminated without substantial justification or if the agency is not renewed by the foreign principal, and the agent may be able to preclude the foreign party from appointing a replacement agent in such circumstance.
o The Commercial Agency Law provides for compensation of the agents terminated without due cause only if the agency agreement has been registered with the federal Ministry of Economy and Commerce (MOEC). Many UAE commercial agents will insist on a registered arrangement in order to avail themselves of the protection of the Commercial Agencies Law.
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