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Federal law on commercial agencies to be amended
November 18, 2009
The federal law governing the activities of commercial agencies is to be amended to protect UAE national agents from arbitrary and illegal actions by those based abroad.
A draft of the revisions was approved by the Federal National Council (FNC) yesterday at a meeting attended by Minister of Economy Sultan bin Saeed Al Mansouri, who described the actions of some foreign agents as "tyranny".
The new rules say an agency provider cannot terminate a contract or block its renewal if there is no essential reason that justifies such action. And it stresses that an agency cannot be reregistered in the record of commercial agents under the name of another agent even if a specific-period contract was signed for the previous agency.
"The main reason behind the new modifications is the protection of UAE national agents from the tyranny of foreign agency providers and this is a very sensitive issue," said Al Mansouri.
