The appointment of a commercial agent remains an attractive way to enter the UAE market. Foreign investors who do not want to establish an entity but wish to trade in the UAE can appoint a commercial agent who will be responsible for the distribution of their product(s) within the defined jurisdiction. The primary legislation that governs agency arrangements in the UAE is Federal Law No. 18 of 1981, what is commonly referred to as the “UAE Commercial Agencies Law”. This regulation is extremely wide and captures all forms of agreements for sale through third parties.
The UAE Commercial Agencies Law has established a comprehensive framework that governs the relationship between the commercial agent and the foreign principal. Pursuant to this regulatory framework, a number of requirements must be satisfied, including that a commercial agent must be either a UAE National or a company that is wholly owned by one or more UAE Nationals.
Commercial agency and distributorship agreements must be registered with the Commercial Agencies Registry for the provisions of the Agency Law to apply to the relevant agency arrangement. To qualify as a Registered Agency Agreement, the commercial agent must have an exclusive right to distribute the relevant goods or provide the relevant services (as described in the Registered Agency Agreement and corresponding certificate as registered with the Ministry of Economy) in at least one of the Emirates.
GCC Solutions is wholly owned by UAE Nationals and as such can assist foreign companies that wish to enter into the UAE market by providing a solution whereby we act as your on-the-ground partner through a commercial agency agreement which allows you to operate and transact goods and services in the UAE without the need to set up an entity of your own. We can provide local representation and assist with the registration of your products and provide administrative support.