Characteristics of a Commercial Agency in the UAE
Foreign principals who wish to conduct business in the UAE. But want to do so with minimal investment. Often turn to lawyers in Dubai to sell their goods or services. The main piece of legislation that governs agency arrangements in the UAE is Federal Law No. 18 of 1981. It is commonly referred to as the “Agency Law”. The Agency law is extremely wide and captures all forms of agreements for sale through third parties. Characteristics of Commercial Agency There are important considerations that foreign principals should bear in mind before entering into agency agreements. · Nationality As per Article 2 of the Agency Law, foreign individuals, and companies are not allowed to practice the activities of the commercial agency in the UAE. As the law has confined such activities to national individuals. And UAE companies are owned entirely by UAE nationals. As a result, it is a common practice for foreign companies seeking to market. And sell their products in the UAE