Court Uncourt - Volume VII Issue 1

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How does a business, however big or small, equip themselves with the knowledge on the best route to introduce their products in the United Arab Emirates (UAE)? A popular method of conducting business in the UAE is the formation of commercial arrangements with local and licenses agents or distributors, especially for companies based outside the country who desire to sell their products in the UAE by foregoing the establishment of subsidiary companies in the region. The laws governing distribution or agency agreements may vary amongst the Middle Eastern country, and Federal Law Number (18) of 1981 as amended governs the commercial agencies. Instead, businesses overseas choose to contract with local individuals and/or companies, who may already have a well-established sale network. In the UAE, such agreements can entail parties of two types: local agents and distributors. However, whilst commercial agency agreements may seem to be of great advantage, an understanding of the intricacies that govern local customs and laws on this matter, would ensure that the parties entering into agency contracts stay aloof of any misunderstandings or complications.