Federal Law No. 94 of 2015 Concerning Commercial Agencies

Article 1 This law shall be known as the Commercial Agencies Law and shall be promulgated forty days after its publication in the Official Gazette. It shall apply to all commercial agency agreements entered into within the UAE.

Article 2 For the purposes of this law, the following terms shall have the meanings indicated opposite each:

• The Ministry: The Ministry of Economy.
• The Minister: The Minister of Economy.
• Commercial Agent: Any UAE national or UAE-owned company appointed by a foreign manufacturer to market, sell, or distribute its products in the UAE.
• Foreign Manufacturer: Any foreign entity that manufactures, produces, or supplies goods or services.

Article 3 No person may act as a commercial agent for any foreign manufacturer without obtaining a license from the Ministry and registering the agency agreement in the Commercial Agencies Register.

Article 4 Commercial agency agreements must be in writing and submitted to the Ministry for registration within thirty days of signing. The agreement must specify the products, territory, duration, commission rates, and obligations of both parties.

Article 5 The Ministry shall register the agreement if it complies with the provisions of this law and its implementing regulations. Registration shall be renewed annually upon payment of the prescribed fees.

Article 6 Commercial agents shall have the exclusive right to market, sell, and distribute the specified products within the designated territory, subject to the terms of the registered agreement.

Article 7 The agreement shall be valid for a minimum period of three years. Upon expiration, it shall be automatically renewed for successive three-year periods unless either party notifies the other of non-renewal at least six months prior to expiration.

Article 8 Either party may request termination of the agreement before its expiration only on grounds specified in this law, including breach of contract, failure to meet sales targets, or loss of commercial license.

Article 9 Disputes arising from commercial agency agreements shall be referred to the competent courts in the UAE. The courts shall apply the provisions of this law and, in its absence, general principles of commercial law and equity.

Article 10 The Minister shall issue the necessary implementing regulations to execute the provisions of this law, including procedures for licensing, registration, and dispute resolution.

Article 11 Violations of this law, including operating without a license or submitting false information, shall be subject to administrative fines and suspension or revocation of the commercial agency license.

Article 12 This law repeals all provisions contrary to its terms in previous laws and regulations.

Article 13 The provisions of this law shall apply to all commercial agency agreements existing at the time of its promulgation, with a grace period of six months to comply with registration requirements.

Article 14 The Ministry shall maintain a public register of all licensed commercial agents and their agreements, accessible to authorized parties upon request.

Article 15 Commercial agents must maintain accurate records of sales, imports, and distributions, and submit annual reports to the Ministry as prescribed.

Article 16 The Ministry may conduct inspections to ensure compliance with this law and may suspend licenses pending investigation of violations.

Article 17 Foreign manufacturers must appoint a local commercial agent to distribute their products in the UAE, except in cases explicitly exempted by the Minister.

Article 18 Agency agreements must include clauses protecting the agent's goodwill and specifying compensation procedures in case of termination without cause.

Article 19 The Minister may establish a committee to review commercial agency disputes and provide advisory opinions to the courts.

Article 20 All fees and charges related to licensing and registration shall be determined by a Ministerial Decision and published in the Official Gazette.

Article 21 This law applies to all emirates of the UAE, and each emirate shall designate a local authority to assist the Ministry in enforcement.

Article 22 The Ministry shall publish guidelines and standard contract templates for commercial agencies to ensure uniformity and transparency.

Article 23 Any amendments to this law must be approved by the Federal Supreme Council and promulgated by Federal Decree.

Article 24 The provisions of this law shall not affect rights acquired under previous agreements until the grace period expires.

Article 25 The Ministry shall cooperate with relevant federal and local authorities to prevent unauthorized distribution and protect registered agents.

Article 26 Commercial agents shall comply with all applicable UAE laws, including customs, taxation, and consumer protection regulations.

Article 27 The Minister shall issue decisions to resolve any ambiguities in the application of this law and ensure consistent enforcement.

Article 28 This law shall take effect on the date of its publication in the Official Gazette, and all previous commercial agency regulations are hereby superseded.