Overview of UAE Commercial Agencies Legislation
Commercial agency and franchise distribution in the UAE are regulated under Federal Decree-Law No. 3 of 2022 concerning Commercial Agencies. This modernized law replaced legacy 1981 legislation, creating a balanced framework for foreign brand owners and local distributors.
For foreign brands setting up direct operations, see our 100% Foreign Ownership Mainland vs Free Zone Guide and 9% Corporate Tax Guide.
Select Distribution Agreement Model
MOEC Registered Commercial Agency
Protected under Federal Decree-Law No. 3 of 2022. Grants statutory territory exclusivity, customs blocking rights against parallel imports, and mandatory MOEC agency committee dispute resolution.
Agency Law Summary
| Regulating Body: | Ministry of Economy (MOEC) |
| Dispute Resolution: | MOEC Commercial Agencies Committee |
| Customs Protection: | Blocks Unauthorized Parallel Imports |
Interlinked UAE Compliance Portals
Frequently Asked Questions (Commercial Agencies Law)
Under Federal Decree-Law No. 3 of 2022, non-emirati foreign principals can directly distribute products without a local agent if certain investment conditions are met, and commercial agency contracts can be terminated upon contract expiration with proper notice.
Registering an agency with the Ministry of Economy (MOEC) grants statutory territory exclusivity across the UAE and permits the registered agent to request customs authorities to block unauthorized parallel imports of the branded goods.
Disputes between foreign principals and local agents must first be submitted to the Commercial Agencies Committee at the Ministry of Economy before any court action can be initiated.
Yes. Foreign investors can incorporate 100% foreign-owned commercial trading companies on the Dubai DET mainland under our Mainland Business Setup Guide to import and distribute products directly.
MOEC VerifiedOfficial Commercial Agencies Source
• Ministry of Economy (MOEC Commercial Agencies Registry): moec.gov.ae