The Minister of Economy, Engineer Sultan bin Saeed Al Mansoori, said that the adoption of the bill by the Council of Ministers to amend some provisions of the Commercial Agencies Law in the country represents an important step towards issuing a revised law at the federal level to update the provisions governing commercial agencies in the country to enhance the role of this vital activity in supporting the economy The National is in a sustainable manner and keeping pace with the economic trends adopted by the state, especially in the area of investment promotion, as well as enhancing transparency, safety and balance of the relationship between the agent and the client.
He explained that according to the data of the Ministry of Economy, the commercial agencies registered in the state are 100% owned by citizenship companies, in accordance with Federal Law No. 12 of 1981 regarding commercial agencies, currently in force, especially since many of these agencies are family companies, noting that The amendments made to the law enable family businesses to transform into public shareholding companies, thereby enhancing their ability to grow and continue for generations to come.
In detail, Al-Mansouri said: "These amendments contribute to providing the opportunity for companies to transform commercial agencies into public joint stock companies and offering their shares for public subscription from citizens of the country and other nationalities as investors and in line with the state’s directions to increase ways to attract quality foreign investment, and this matter was not available. According to the second article of the agency law currently in force, this article restricted the ownership of commercial agencies in the citizens of the state, whether in the form of natural persons or in the form of commercial companies.
The Minister of Economy also clarified that the legislative review aimed at extending the life of family companies through protecting the funds and investments of the agent, and took into account the compatibility between the law of commercial agencies and the law of commercial companies and economic requirements and benefits, which also contributes to the continuity of the work of family companies and not subject to liquidation or insolvency after the second or third generation.
In total, he mentioned the most important goals that the law amendments sought to achieve, as follows: strengthening the capabilities and continuity of family businesses; establishing the rules of corporate family governance and protecting them from defaulting or being subject to liquidation; providing an opportunity to the financial market by transforming companies and including them in the country's financial markets, encouraging Citizens of the state to do business and invest in public shareholding companies that have commercial agencies and that have a commercial agency with minimal risks, especially small shareholders, to protect the interests of the citizens of the state in the concession contracts granted to them, especially owners of small and high Sata, keeping pace with the state's economic developments and policies.
It is noteworthy that the total commercial agencies registered in the country according to the data of the Ministry of Economy reached from 33 January to the end of November of 2019 about 339 agencies, including 194 in Abu Dhabi, 132 in Dubai and 6 agencies in Sharjah, while the total agencies registered in the country until the same period reached 6469 agencies For more than fifty nationalities, with a growth rate of more than 4.3% compared to the same period last year.