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UAE commercial agencies Law introduced stricter penalities for violation –up to Dh 400,000 fines

To uphold the sanctity of commercial agreements in the UAE the law will be enforced rigorously whether the violation is committed by a third party or one of the contractual parties .Hasan Al Kilany ,a senior legal counsel at the Ministry of the economy ,emphasized that the penalties would be applied without discrimination . As per the amended law ,penalties include the confiscation of goods and fine reaching up to DH400,000. Penalties are Imposed in a tiered manner under the new disciplinary cabinet resolution .In the first offense results a warning followed by a DH 100,000 fine .For recurrent violations or actions leads to seizure of goods and fine increases to DH 200,000.Finally a substantial fine DH400,000 is imposed for the most severe violations . Any wrong doing such as agent in one emirate attempts to bypass geographical limitations and sell goods in another emirate would be subject to these penalties . The commercial agencies law came into effect on June 16,2023 and the disputes will now be adjudicated under its provisions ,ensuring a consistent approach to handling violations .previously such disputes were referred to civil courts. Commercial agency business sector is reserved for UAE nationals and public joint stock companies in which at least 51 per cent of national capital contribution will be allowed to act as commercial agents .