DUBAI - "Proposed amendments to the United Arab Emirates (UAE) Commercial Agencies Law are aimed at keeping abreast with global best practices and maintaining maximum consumer protection," said Sheikha Lubna Al Qasimi, UAE Minister of Economy.
In a statement made to the Emirates News Agency (WAM), Al Qasimi outlined the major amendments introduced to the existing Agencies Law, pending ratification by President Sheikh Khalifa bin Zayed Al Nahyan.
"Amendments to Articles 8 and 9 of the law impose restrictions on the principal's right to revoke dealership unilaterally unless there is a strong reason that justifies the act. It is also prohibited to make an entry into the commercial agencies register in the name of another agent," she said.
By virtue of the new amendments, the agency contract shall be limited to certain duration, unless extended one year before its expiry. Such amendment denotes that the agency shall be renewed only at the mutual consent of the two parties. This will help create equilibrium in the principal-agent relation.
Al Qasimi also pointed out to an amendment in Article 23 of the law under which, no products or goods of the same brand shall be allowed into the country without the agent's approval, with the exception of those specified by the cabinet as liberalized goods.
According to Al Qasimi, other commercial laws will be amended. The UAE government is in the process of drafting a competition law in line with the strategy of the UAE to create an enabling business environment that is conducive to economic growth.
Furthermore, she disclosed that the UAE is currently amending the Federal Companies Law.
"The main amendment pertains to removal of the equity capital restriction which is presently 51% national equity. These amendments will also streamline the authentication procedures by giving investors several options to attest through public notaries or registered law firms," she explained.