Last Updated on: 12th July 2023, 06:05 pm
UAE Announced The Effective Date Of The New Law On Commercial Agents
The Ministry of Economy (MoE) of the United Arab Emirates (UAE) has announced that on 16th June 2023, a new Law on Commercial Missions will come into force.
According to this law, the activity of commercial agents is restricted to UAE nationals and joint-stock companies with a minimum contribution of 51% of the national capital.
The UAE National Capital Contribution is the percentage ownership or interest in a company held by UAE citizens or joint-stock companies.
However, under certain conditions and with the approval of the UAE Cabinet, international companies can still act as commercial agents for their own products.
The aim of the proposed new law is to help commercial agencies grow and contribute more to the national economy by diversifying their activities and improving their performance. In addition, the investment climate should be improved and the interests of the contracting parties protected.
Abdulla Al Saleh, an undersecretary for industry and foreign trade at the Ministry of Education, said the law will boost domestic investment and foreign direct investment (FDI) in the country.
He also pointed out that it will allow commercial agencies to grow and offer consumers better products and services, as well as new job opportunities across the country.
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