© 2020 by Gateway Group Of Companies

  • Jenny Hunt

6 Tips About Commercial Agent Agreements In Abu Dhabi and Dubai

21st October 2017

A Commercial Agent Agreement is a way for foreign companies to sell their products into the Abu Dhabi and Dubai markets without setting up their own commercial presence here. This can be cost-effective as the foreign party not only avoids business setup costs but also any costs in relation to further registrations. Any special registration will be arranged under the commercial agent’s trade license. A commercial agent can also be referred to as a distributor.


6 things you need to know about Commercial Agency Agreements

  1. The agreement with a Commercial Agent is usually exclusive for a defined territory, e.g. a specific Emirate or the whole of the UAE.

  2. The agreement must be registered with the Ministry of Economy.

  3. The Commercial Agent is entitled to a commission for all transactions within the territory, whether they have been involved directly or not.

  4. The Commercial Agent has powers to restrict the goods coming into Abu Dhabi or Dubai, which can prevent trade in such instances as a dispute.

  5. The foreign company can not refuse to renew the agreement or choose to terminate the agreement without a valid reason. In such instances, compensation is likely to be due to the Commercial Agent.

  6. Disputes are heard via a committee before going to court.

In general, it is difficult to terminate a Commercial Agent agreement without mutual consent from both parties. Such agreements should be entered into wisely and professional legal advice should be sought.


The above information is purely intended as an overview and does not constitute legal advice.


Written by Jenny Hunt, Founding Partner & CEO

Gateway Group of Companies, Abu Dhabi & Dubai UAE

Related Gateway Group Blogs

Complete Guide To Starting A Business In Abu Dhabi

Why Invest In Abu Dhabi

Gateway Group Of Companies

Protect your business and profits and have an efficient business setup in Abu Dhabi and Dubai by engaging the award-winning Gateway Group to deliver our customised business setup, unique local sponsor packages, and visa processing. To establish your business in the UAE, Email us: Info@GatewayToUAE.com

Gateway Group – We’re Pretty Good At What We Do


Best Company Formation Specialists 2019

Lawyer International


Best Onshore Company Formation Specialists – UAE

MEA Markets 2019 GCC Enterprise Awards


Best Company Formation Specialists 2019 – UAE

M&A Today


CEO Today Middle East Awards 2019 (Jenny Hunt)


Recognized Leaders in Offshore Company Formation 2019

MEA Markets


10 Most Promising Corporate Business Service Providers 2019

Silicon India


Gateway CEO, Jenny Hunt, ranked in

FORBES' Top 100 Most Influential Women in the Middle East


Gateway is ranked in the Top 20 Abu Dhabi blogs to follow


#Gatewaytoabudhabi

#GatewaytoDubai

#GatewaytoUAE

#ReassuringlyHonest

#localsponsor

#companyformation

#visas

#businesssuccess

#theauthority

#sponsor

#AbuDhabi

#Dubai

#UAE

#UnitedArabEmirates

#blog

#blogger

#businessblog

#AbuDhabiblog

#Dubaiblog

#businessgrowth

#businessexcellence

#commercialagent

#commercialagentagreement