UNITED ARAB EMIRATES: New amendments to the Commercial Agency Law.

Carlotta Mazzetti | UNITED ARAB EMIRATES | 2007-02-20

Carlotta Mazzetti

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At the beginning of September 2006, the Ministry of Economy issued the Resolution No. (381) regarding cancellation of the Commercial Agencies Registration, that sets out the procedure and the specific conditions under which a commercial agency might be cancelled from the ministerial Register.

The main provisions of the new law are devoted to reducing the excessive protection accorded to national commercial agents by the previous law. For instance:

  • Amendment to Article 8 statutes that a commercial agency contract concluded for a fixed period of time will be considered as terminated on the date of its expiry, unless otherwise agreed by the parties at least one year before the expiration date.
  • Article 9 has been modified in order to provide the right to claim compensation also for the principal, while previously such right was reserved to the agent only.


The consolidated text of Federal Law No 18 of 1981, as subsequently amended, together with the Ministerial Resolution No 31 of 2006 can be found in the Legislation Section of the IDI website.



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