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Recent Revisions to Commercial Agency Law in the United Arab Emirates

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image of Arab Law Quarterly

The United Arab Emirates—despite its general reputation for free trade and limited government regulation of business—has had (for over two decades) the most onerous 'dealer protection' law in the Middle East.

Very recently, however, pro-competition (or anti-monopoly) sentiment within certain UAE government circles resulted in enactment of a new federal law and two UAE Ministry of Economy resolutions that collectively reflect a weakening of those dealer protections. For example, Minister of Economy Sheikha Lubna Al Qasimi observed:

The new amendments will certainly boost the competitive economic climate in the UAE…. This law was promulgated out of the desire to enhance and maintain stability in prices and ensure that agencies are not manipulated to increase prices.

The following summary highlights some of the more significant aspects of current UAE commercial agency law, including a look at those recent amendments. (I have prepared an English translation of the UAE Commercial Agency Law, including the 2006 amendments, listed as Appendix 1 at the end of this article.)

Affiliations: 1: Law Office of Howard L. Stovall, Chicago, IL 60614-4001, USA


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