This article examines the recently issued amendment to the Commercial Agencies Law, which reduces the level of protection given to commercial agents in the United Arab Emirates (“UAE”). The article starts with a brief review of the main provisions of the law prior to amendment and their protective nature. It highlights the requirements of an agency agreement as per the applicable law and the constraints imposed on a principal who wishes to terminate or refuses to renew the agency agreement. The author then sheds some light on the inconveniences caused by the provisions of the applicable law which made it very difficult for a principal to terminate an agency agreement and imposed an obligation for the payment of compensation to a terminated agent. The article then examines and reviews in detail the amendments made which should allow a principal greater freedom in putting an end to the relation with its agent and replacing the agent with another. The author concludes by highlighting certain issues that still require reform in the agency legal regime.
Business Law Review