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)