Up to Dh400,000 fines under UAE Commercial Agencies Law announced

The Commercial Agencies Law came into effect on June 16, 2023, whereas previously disputes were referred to civil court


Waheed Abbas

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Published: Mon 11 Sep 2023, 3:26 PM

Last updated: Mon 11 Sep 2023, 11:39 PM

The UAE Commercial Agencies Law has stipulated the seizure of goods and a fine of up to Dh400,000 for violating the law by any of the parties.

Hasan Al Kilany, senior legal counsel, Ministry of Economy, said penalties will be implemented for any wrongdoing, whether by a third party or two contractual parties.

In addition, a new disciplinary Cabinet resolution has been also been passed.

“Disciplinary Cabinet resolution speaks to everyone who is jeopardising the UAE commercial agencies law,” said Al Kilany.

The fines have been introduced in the Commercial Agencies Law, which came into effect on June 16, 2023. Previously, the disputes were referred to civil court.

He pointed out that under the new disciplinary Cabinet resolution, this person will be penalised at two levels. The first attempt is to serve a warning. Then he would be issued a Dh100,000 fine, then Dh200,000 for recurring and seizing the items. Then there is a fine of Dh400,000, Al Kilany said on the sidelines of a press briefing hosted by the Ministry of Economy and Al Tamimi & Co. about the commercial agencies' law.

The new commercial agencies law came into effect on June 16, 2023, which applied to all sectors. The business of commercial agencies would be exclusive to UAE nationals as well as public joint-stock companies with at least 51 per cent owned by nationals.

He added that penalties apply to any wrongdoing such as an agent in one emirate bypassing the geographical limitation and jumping to another emirate to sell goods.


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