Seminar on Commercial Agencies in October

Dubai, UAE
Statistics in the World Investment Report 2001 a report published by the United Nations department on trade and development, indicate that 59 foreign affiliates set-up businesses in the local UAE economy. Oman had 351 foreign affiliates in their local economy, while Saudi Arabia had 1461.

Statistics on foreign investment by Arab countries in the UAE showed a rise in Arab investments in the UAE by 11.4 percent to $196 million (Dhs721 million) in 2000 from $176 million (Dhs647 million) in 1999. This is according to the Abu Dhabi Chamber of Commerce and Industry (ADCCI) annual report.

Arab investments were concentrated in eight major sectors namely transport and storage, communication, manufacturing industries, extraction industries, real estate, government services, gas and water, construction and building, farming and fisheries.

Foreign companies can do business in the UAE in a number of different ways. One is by appointing a 'commercial agent' to act as distributors for their products - a potentially fraught choice, as it can prove impossible to terminate such arrangements should they prove ineffective or lose money for the principal.

A good number of foreign companies in the UAE are operating through an officially registered trade agent or dealer in accordance with the prevailing laws and regulations. However, Agency and Distribution agreements in the UAE should not be entered into without careful thought and planning.

Al Tamimi & Company - Advocates and Legal Consultants will be conducting a one-day seminar in Dubai on October 21st, to provide a clear understanding of the laws related to Commercial Agencies in the UAE for those who may wish to determine whether their present agency agreement is effective or not. The seminar will be held in the new Dusit Hotel on Sheikh Zayed Road in Dubai.

Foreigners investing in the UAE are not allowed to start or practice any business activity until they have satisfactorily followed the local laws following to which a license is issued by the Ministry of Economy and Commerce. The Agency Law makes no distinction between commercial agency agreements, and agreements regarding distributorships, franchises, commission arrangements and other forms of sales representative or sales agency relationships. All of these forms of business arrangements may qualify as commercial agencies under the Law.

The seminar will explain Commercial Agencies under the Law, and start with a session introducing the role of government departments, and in particular the Ministry of Economy and Commerce in enforcing legislation with respect to Commercial Agencies in the UAE.

Targeting senior managers and contracts managers, the seminar will also provide an overview on their prospective ability to terminate a registered agent, and the preparation needed to prove a justifiable cause before the court in order to overcome some of the substantial protections to agents, some of which can hinder or make financially impractical the termination of an agency agreement.

Among the presenters will be Essam Al Tamimi and Dr. Adil Sinjakli, managing partner and senior legal consultant respectively of Al Tamimi & Company. Dr. Sinjakli directs the litigation for a number of important and highly publicized agency disputes in the UAE, including the Ford Motor Company vs. Galadari Automobiles case.

The presenters will also provide valuable insight into the current provisions of the Agency Law and regulations as well as give an overview of the most recent court judgments with regard to agency disputes.