The UAE is set to let public joint-stock companies with at least 51 percent of national capital contribution act as commercial agents.
This is to be allowed under the country’s new draft federal law on the regulation of commercial agencies, Abdullah bin Touq Al Marri, minister of economy, said.
“Only UAE nationals can act as commercial agents, which is similar to the position under the old law, but the new draft law gives the right for public joint-stock companies and public legal entities with at least 51 percent national capital contribution to register commercial agencies,” Al Marri told Wam.
The new draft law is aimed at providing more business opportunities for UAE citizens and allows new categories of citizens to access the commercial agencies’ business.
The minister’s remarks came amid the Federal National Council (FNC) currently reviewing the new draft law.
“Now that 40 years have passed since the original law was drafted, only 6,000 commercial agencies have been registered which is a modest figure, considering the current economic potential boasted by the UAE and the conducive business environment in the country,” the minister said.
The existing law on the regulation of commercial agencies imposes some restrictions on the cancellation of commercial agencies, even after the expiry of the contract term.
Under the proposed law, the agency contract terminates on the expiry of the contractually agreed term.
“The core reasoning behind the new law concerns boosting the country’s competitiveness while ensuring alignment with international business standards,” the minister said.
Al Marri also said the new draft law on the cooperatives would allow the establishment of various forms of cooperatives in the country to benefit from the economic and development opportunities offered by this vital sector, with a view to enhancing its contribution to the GDP.