Commercial Agency Law
1. Protective Regulations for Registered Commercial Agencies
In case a registration of the commercial agency at the appropriate ministry is possible and will also be implemented, the UAE Commercial Agency Law, which is extremely advantageous for the commercial agent, will be applicable. The provisions of this law are mandatory and cannot be contracted out or bypassed.
A registered commercial agent, for example, enjoys exclusivity within his territory. In addition, the commercial agent is entitled to a commission for all products he is registered for and which are sold within his territory. He even is entitled to such a commission should he not be actively involved in the business transaction. Furthermore, the commercial agent is able to block the import of products at customs, should there be a disagreement with the principal.
The commercial agent is protected and covered under the UAE Commercial Agency Law until the registration of his agency is formally deleted from the ministry's register.
The aforementioned protective regulations do not apply to unregistered commercial agencies.