Up to Dh400,000 fines under UAE Commercial Agencies Law
Prior to the Commercial Agencies Law's implementation on June 16, 2023, conflicts were handled through civil courts.
Any party who violates the UAE Commercial Agencies Law faces up to Dh400,000 in fines and the possibility of having their property seized.
According to Hasan Al Kilany, senior legal counsel at the Ministry of Economy, there will be consequences for any misconduct, whether it is committed by two contractual parties or by a third party.
Al Kilany stated, "The Disciplinary Cabinet resolution speaks to everyone who is endangering the UAE Commercial Agencies Law."
The Commercial Agencies Law, which went into force on June 16, 2023, included the sanctions. The cases were previously sent to civil court.
He emphasised that this individual will face two levels of punishment in accordance with the new disciplinary Cabinet resolution. The initial effort is to issue a caution. Subsequently, he would be fined Dh100,000, and subsequently Dh200,000 for the items he had seized. On the fringes of a press briefing concerning the commercial agencies' law organised by the Ministry of Economy and Al Tamimi & Co., Al Kilany stated that there is furthermore a Dh400,000 penalties.
On June 16, 2023, the new commercial agencies law went into force, affecting all industries. Exclusively UAE nationals and publicly traded joint stock firms with at least 51% national ownership may conduct business through commercial agents.
He clarified that fines are imposed for any misconduct, including when an agent in one emirate sells items in another emirate by hopping over a geographical restriction.
