UAE: New Commercial Agency Law
The Government of the United Arab Emirates has recently issued Federal Law No. 3 of 2022 regulating commercial agencies (“New Commercial Agency Law” or “New Law”), replacing the current commercial agency law after more than 40 years since its initial enactment i.e., Federal Law 18 of 1981 “(Old Law”).
Repealing the Old Law effective 15 June 2023, the New Commercial Agency Law brings significant legal reforms for commercial agencies, distributors, and principals who will now be able to benefit from a more balanced legal framework and clear rules for their operations. The law provides a much-needed legal update for the foreign principals of commercial agencies operating in the UAE, enabling them to pursue their business goals with greater confidence and security.
This legal briefing shall highlight the salient reforms brought about by the New Law, such as agency contract term, termination & non-renewal of an agency along with changes to the options of dispute resolution.
You can access our legal briefing on the following link: