Key updates on Commercial Agencies in the UAE

In accordance with UAE Federal Law No. 2 of 2022 concerning the Regulation of Commercial Agencies (Commercial Agencies Law), the UAE Ministry of Economy (Ministry) has issued several recent decisions addressing critical aspects of commercial agency operations. Below are the key highlights:

1. Registering a Commercial Agency on the Commercial Agency Register
   
   • The Ministry has detailed the procedure, requirements and information required to register a commercial agency with the Ministry. Commercial agencies will be filed on the Ministry’s Electronic Service Platform (ESP).
   • The ESP streamlines the registration process and allows documentation concerning a commercial agency to be contained through a single portal. All actions relating to commercial agencies will be completed via the ESP, including but not limited to, registration, renewal and writing off of commercial agencies.
2. Assessment of the volume of the agent’s investment
   
   • The Ministry has set out the controls and standards for an agent to apply for the non-enforcement of the expiration of a commercial agency pursuant to the Commercial Agencies Law where the commercial agency has been registered for more than 10 years and the volume of the agent’s investment exceeds AED100,000,000.
   • The assessment of the volume of the agent's investment will be carried out by a tax resident appointed by the agent and approved by the Ministry.
3. Terms and Conditions for the Entry of Goods and Services during a Dispute
   
   • The Ministry has sought to ensure the flow of goods and services in the UAE market in the event of a dispute between the agent and the principal by allowing the temporary entry of goods and services from an Exclusive Source (subject to the Ministry’s approval).
   • The Ministry has set out the terms and conditions for the temporary entry of the goods/services along with the obligations of both the principal and the Exclusive Source.
   • The Exclusive Source is a merchant or other person or entity specified by the Ministry, who can temporarily enter goods or services from the principal during the duration of the dispute.

These decisions signify the Ministry’s commitment to enhancing regulatory clarity and facilitating smoother operations within the commercial agency sector. Should you require further details or assistance in navigating these changes, please do not hesitate to contact us.