Experts and businessmen: “commercial agencies” a legislative update that increases the attractiveness of the economy

Mustafa Abdel Azim (Dubai)

Experts and businessmen have said that the draft federal law on the regulation of commercial agencies, which will be discussed in the Federal National Council today, is a new legislative update that needs to be added to the list of laws that have been updated over the past few years. is aimed at consolidating the position of the national economy and improving the country’s attractiveness for investment.
They explained that the draft law, which is expected, if approved, Commercial Agencies Act No. 18 of 1981 will replace, introduce good legal articles and new ideas consistent with the economic introduction of the United Arab Emirates and global economic variables, with the state’s openness to trade within the state, and encouragement .. attract of foreign capital to in to invest the land. However, they also pointed out the need for the law to take into account the decades-old relationship between agency owners and trademark owners and the large sums invested by agency owners over these years, and stressed the crucial role of commercial agencies owned by citizens be in support of the national economy over recent years. , which requires consideration to protect the interests of these agencies.

  • Majid Al Ghurair

Majid Saif Al Ghurair, former chair of the Dubai Chamber of Commerce and Industry, and chair of the Al Ghurair Group, stressed the importance of commercial agencies and their role in protecting the economic interests of the UAE, and emphasized the role that agency owners played praised. many years in maintaining the position of the Emirates by the strength of representation of these agencies in state markets.
Al-Ghurair explained that the new law on commercial agencies is in line with the objectives of the state’s economic policy in the light of the major changes taking place in the global economy, and is working on how to put the national economy first develops and that matters to the economy, emphasizing that the presence of the civic agent ensures the availability of services at high levels of quality that he may not provide.The external agent whose main goal is to get the best prices anywhere in the world obtained while the national agent is eager. to provide services at the best level and to preserve its interest and reputation in the market.

  • Osama Al Rahma
    Osama Al Rahma

The position of the Emirates
Osama Al Rahma, Head of Business Development at Emirates Investment Bank, in turn said that the modernization of the Commercial Agencies Act, which has been issued since 1981, reflects the legislative flexibility enjoyed by the UAE and harmonizes with its current position among global economies. , noting that updating laws and legislation related to strengthening the capabilities of the UAE to attract international companies and institutions is one of the main directions and objectives of the UAE economy for the next phase. Al Rahma explained that many international companies, before making an investment decision, look at the set of laws that regulate the investment climate in the market in which they strive to be present, and identify the possibility of adapting to it in accordance with international standards. . that many international companies are reluctant to enter some markets due to their entry restricted to under the umbrella of an exclusive agent, which limits the attractiveness of these markets, and makes exceptional decisions to attract these companies, which in turn a qualitative addition to the economies of these markets as they enter.

investment attractiveness
He emphasized the importance of the new law on commercial agencies, consolidating the country’s attractiveness for foreign investment and large international companies, and improving the approach of openness and integration in the global economy pursued by the UAE, especially since some countries in the region have already updated their laws related to commercial agencies. Al Rahma pointed out that family businesses in the UAE that have had exclusive agencies for decades have achieved outstanding success and have proven their superior ability to market goods and products under their exclusive agencies, enhancing the relationship with the client more strength, solidity and credibility over these decades. ‘Which improved the competitiveness of the civic agent through this professional link based on the principle of profit for both parties, pointing out that it is not easy for the client to abandon a major commercial partner who contributed to the creation of’ a promising market for its products and creating the reasons for growth and development for these products, which increases the chances of continuity positive relationship.

Agency investments
Al Rahma pointed out the importance of the new law, taking into account the large investments made by family businesses and owners of exclusive agencies over decades, and guaranteeing their protection at the end of the agency contract, and pointing to the need to to take into account. parties, and to consider consultation with owners of large family businesses To understand the future steps regarding this Act and its executive regulations. Al Rahma explained that the new law for commercial agencies will reflect the legislative flexibility of the UAE and its ability to adapt to global economic changes and create a favorable investment environment to attract foreign direct investment, especially large international companies. According to the Ministry of Economy, the total number of commercial agencies registered in the country’s markets In various sectors, 5944 agencies were registered by the end of 2020, after 348 new agencies were registered during 2020, in addition to 65 new agencies registered during the first quarter of 2021 is registered.
The commercial agency sector contributes to the construction of national facilities with large investments, stimulates the attraction of foreign investment, creates jobs and builds expertise, regulates internal trade and prevents cases of commercial fraud, the development of the transport and shipping sectors and attracts buyers, as well as encouraging civilian businessmen to build leading national companies that enjoy sustainable partnerships with global markets.

  • Ali Sultan Al Ameri
    Ali Sultan Al Ameri

Al-Amiri: Modernization keeps pace with global change
Ali Sultan bin Rakkad Al Ameri, CEO of Commercial International Bank, stressed that the state’s tendency to issue a new law on the regulation of commercial agencies in the country and the development of legal articles and new ideas at this time important is, which keeps pace. with global economic changes. Because it represents the economic launch of the UAE, with the country’s openness to trade between states.
Al-Amiri said: The modernization is a serious attempt to move away from limiting the goods and product to one distributor, thus encouraging and attracting foreign capital to invest in the state, and pointed out that the new law will strengthen the role of vital activity. to support the national economy in a sustainable way, and to keep pace with the economic trends adopted by the state, especially in the areas of investment promotion, transparency and the integrity of the relationship between the agent and the principal.

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