UAE Free Zone — Commercial Agency Law Reference 2026
UAE commercial agency law affects how free zone companies can sell products through UAE mainland agents and distributors. Here is the complete 2026 reference.
In this guide:
UAE Commercial Agency Law Overview
- Law: Federal Law No. 3 of 2022 on Commercial Agency (replacing old 2010 law)
- Applicability: Governs exclusive commercial agency and distribution agreements in UAE mainland
- Free zones: Free zone companies operating in UAE mainland through agents are generally subject to this law
Commercial Agency Registration
- Mandatory registration: Commercial agency agreements must be registered with Ministry of Economy to be enforceable
- Registration requirement: Principal (manufacturer/brand) + agent (UAE mainland company) + exclusive territory + exclusive products
Agent Protection (Historical Issue)
- Old law (pre-2022): UAE agents enjoyed extreme protection; principals could not easily terminate even for cause
- 2022 reform: New law allows termination for cause with proper notice; reduces agency lock-in
- Compensation: Agents still entitled to compensation on termination if they have built up the market
Free Zone to Mainland Distribution
- Free zone company selling to UAE mainland: Must do so via a UAE mainland distributor; cannot directly sell to mainland end customers without mainland presence (unless through an approved channel)
- Customs: Goods moved from free zone to mainland are subject to UAE import duty (5% standard rate)