July 28, 2021



| Your comment matters, please click here to rate article!

A noteworthy amendment in the Commercial Agency Law (Federal Law 18 of 1981) in UAE is currently the talk of the town. The recent amendment was issued by virtue of Federal law 11 of 2020, which is approximately after 10 years of the last amendment in the Agency Law. The Commercial Lawyers of Dubai will discuss the important clauses introduced in the Amendment law for a better understanding of the law.

The recent amendment is significant is because of the right granted to corporate entities with 51% national contribution to act as a commercial agent. While the Amendment carried a few changes to the Law, the unwinding for unfamiliar foreign investors was anyway constrained. Then again, the Amendment reconfirmed the legal assurances offered to commercial agents registered in the country.

Under the new Amendment the definition of an agent has been amended or broadened up for that matter. A natural or a legal person can act as an agent if the commercial activity is under taken by any local national individual, public legal entity, private legal entity owned by a public company, private entity owned by local shareholder and a public joint stock company whose 51% of shares are owned by local shareholders.

In addition, the amendment now allows the shareholders to transfer their shares to their heirs, in the event of their demise. A more stringent provision can be witnessed under the new Amendment with regards to the termination of the Agency contract. The amendment forbids the principal to terminate the Agency contract or even restricts them to not renew the contract without a justified reason for termination or non-renewal. Additionally, the law does not allow the agent to register a new commercial agency, until the previous agency contract was terminated mutually by both parties or the Commercial Agency Committee is convinced of the justified reasons for terminating the agency contract.

Another significant change in the amendment in the law is the jurisdiction awarded to the Commercial Agency Committee. The new Amendment offers an exclusive jurisdiction to the Committee, yet restricts their scope to entertaining disputes arising out of a commercial agency agreement. As compared to the earlier, the new amendment has reduced the scope of Agency Committee.

The Amendment in addition clearly promised the wide range of roles and powers offered to agents in the country, which are as followsU+0003A.

  • Exclusive right of the agent to sell principal’s goods ion the country and represent the principal;
  • Agents right to claim commission from the principal on all transactions even on transactions concluded by principal or any third party;
  • The right df the agent to block any parallel similar product imported by the any other company;
  • The right to claim compensation ion the event the agency contract is terminated by principal without any justified reasons;
  • Exclusive authority of the committee to resolve agency disputes;
  • The termination of the agency agreement will not be allowed unless the principal states the justified reasons for such termination.
  • The aforementioned changes in the law will certainly have a deep impact on the existing agency agreements in the country and would require Top Lawyers of Dubai to review such agreement for ensuring safety of both parties rights.

    Related Links

    Copyright © of this article is retained by the author and/or other copyright owners. We explicitly grant you permission to download a copy, without any alteration, of this article for personal non-commercial research or study, without prior permission or any charge. This article can be utilized on your website or for marketing, however, we grant you permission to host this article on your website and no other rights. This content should not be altered in any way or sold commercially in any format without prior permission of the copyright holder. During reference of this article, full biographic details entailing the name of the author, his designation, the institute and the publishing date of the article shall be provided.


No comments found.

Leave a Comment

Your email address will not be published. Required fields are marked *

Want to know more?
Then talk to us.

Client Testimonials

I owe the success of my case to Dr. Hassan's diligent approach. He remained focused, put me at ease and always went the extra mile. Dr. Hassan tirelessly put my case in the best possible light and I cannot thank him enough. I would highly recommend Dr. Hassan - I am grateful to him from the bottom of my heart.

Raphael Lauria
Manager, FME General Trading

Dr. Hassan Elhais is among the best legal consultants I have ever worked with. He has an amazing ability to reduce complex issues into a simple concept that non-legal people can understand. He consistently develops innovative litigation strategies that help us to achieve our ultimate legal goals.

Zhuo Liu

...the extraordinary effort that has been exerted by the staff, and we specially thank Dr. Hassan Mohsen Alhais. Wishing your continues success & excellence...

H.H. Sheikh Saeed Bin
Mohammed Hashir Al Maktoum

I believe everyone should recognize what a difference Dr. Hassan Elhais work has made to people's lives; and especially to our family's life, because we will remain forever grateful to each and every one of his team.

Luis Pozueco

Dr. Hassan Elhais never fears cases that involve exposure and he always gives me his honest assessment of our chances of success, which is invaluable to me.

Bassam Yamout
Director, JM Metal Trading LCC

He aided us not only in providing legal advice but also in all legal issues that required a long term strategic approach to achieve most favorable and optimum outcomes he provided us with high level of professional service.

Philippe Delbecq

Dr. Hassan Elhais is a responsible, reputable counsel who operates to high levels of service.

British Client

Dr Hassan Elhais is responsive, thorough and creative with his advice, and is a valued advisor and legal consultant.

Asma Mattar
Manager, Italian Style

Regardless of the complexity of the matter I know Dr. Hassan Elhais will consider not only legal strategy but also business practicalities in providing advice and litigation options.

Dr. Massimo Hakim
Chairman, Italian Style

I recommend Dr. Hassan Elhais to anyone who says 'I'm in legal trouble'. I was extremely satisfied with the high standard of his work. He has always been there when I have needed him and I refer all my clients, family and friends to him/his firm.

Manish Gupta
Marketing Manager, Express Digital System

Dr. Hassan Elhais was very professional and he listened to my needs. He was very prompt, efficient and always kept me informed. Dr. Hassan Elhais's service was excellent and I would definitely recommend him to friends and colleagues.

James Horsley
British Client

Select your Language:


Main Menu