1397 commercial agencies have entered the labor market over the past 22 years

Government report: Registration of commercial agencies in the country suffered 40 years of "stagnation and decline"

During the discussion of the draft law of commercial agencies in the «national».

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A government report revealed that the registration of commercial agencies in the country was marred by a kind of stagnation and decline during the past 40 years, as the development of agency activity from 2000 to the current year did not exceed 1.1%, pointing out that the number of agencies that were registered over the past 20 years reached Only 1,397 agencies, bringing the total number of agencies registered in the country during the last 22 years to 6,096 agencies.

In detail, a report by the Ministry of Economy confirmed that the UAE is on the verge of building a new economic model within the framework of the preparation plan for the next fifty years, which seeks to consolidate the country's position as a global center for trade and investment and to ensure a broader contribution of the citizen business community in this path, pointing out that the state is looking forward to sending a message It is clear to the international community about the level of maturity it has reached at the level of economic legislation through the issuance of enabling economic legislation to achieve the state’s direction in accordance with international best practices.

The government report, which was presented by the Ministry of Economy to the Federal National Council, during the discussion of the draft federal law regarding commercial agencies, which was approved by the Council last July, stated that the activity of commercial agencies in the country suffered a clear weakness and the reluctance of international companies to enter the country’s markets through activity. Commercial agencies, during the past 40 years, as a result of the limited development of the Federal Commercial Agencies Law No. 18 of 1981, which was also one of the reasons for depriving a larger segment of citizens from attracting new commercial agencies. approved by parliament) witnessed extensive legislative developments that achieve the public interest of the country’s economy and all citizens, whether from established commercial companies or new companies and aspiring entrepreneurs of citizens, in a way that achieves the aspirations of the UAE government to improve business practice, and maintain leadership, competitiveness and leadership in a timeNations and states compete in it, and the economy accelerates at an unprecedented pace as a result of advanced technology that casts a shadow over all aspects of economic activities.

And the new federal law regarding the regulation of commercial agencies, which was approved by the Federal National Council, at its closing session of the last session, concluded that the practice of commercial agency business within the country is limited to citizens, stressing that commercial agency contracts expire at the end of the contract period, unless the period is renewed by The “contractors’ agreement”, while the establishment of a governmental committee called the “Commercial Agencies Committee” was created, which is specialized in examining the dispute that arises between the parties to the commercial agency registered with the Ministry, and the case is not accepted before the courts in this regard before it is presented to the committee.

The report, of which Emirates Today obtained a copy, stated that the new law regulating commercial agencies recognizes a fundamental principle in the world of commercial contracts represented by the authority of the will, and that the contract is the law of the contracting parties in line with the best international legislative practices, which confirms respect for the will of the parties and contractual clauses and the restriction of The role of the law in framing, organizing and providing an appropriate and attractive environment for the practice of commercial agency activities, paving the way for businessmen and investors to agree on the terms of contracts and agreements signed between them, which ensures a balance of interests between the parties.

The report included government statistics on the registration of commercial agencies in the country during the past two decades, which revealed that the development of the registration of the number of commercial agencies was characterized by a kind of stagnation and decline during the period from 2000 to 2010, as the total number of registered commercial agencies during the year 2010 reached about 4378 agencies, compared to 4699 agencies. in 2000, recording a decrease of 7%.

According to the statistics, the expansion of the measurement period from 2000 to 2022 shows that the development of the commercial agency activity was very modest, and did not exceed 1.1%, compared to the 25-fold increase in the state’s economy from 1975 to 2021, pointing out that the number of agencies that There were 1,397 agencies registered over the past 20 years, bringing the total number of registered agencies to 6,096 agencies in 2022, compared to 4,699 agencies in 2000.

7 advantages of agency law

The government report identified seven goals or advantages achieved by the new Commercial Agencies Regulation Law, which will come into effect in 2023, including: approving the principle of respecting contractual terms in line with international best practices, developing provisions for transferring and transferring commercial agency assets at fair value to complement and achieve smooth exit, in addition to Additional guarantees to fairly compensate the commercial agent if he is harmed, even if the termination is one of the reasons for the termination of the commercial agency specified in the law, organizing the entry of goods and services during the period of dispute between the principal and the agent and introducing the principle of temporary entry through exclusive sources to protect the interests of the consumer to avoid interruption of goods and services in the market.

The list of advantages achieved by the new law, according to the report, also included the introduction of the consensual resort to arbitration to settle the dispute between the principal and the agent to ensure the flow of goods in accordance with the World Trade Organization agreements, the introduction of an administrative sanctions system instead of penal sanctions in line with the orientation of the recently issued legislation, and the agreement on a transitional period. For existing agencies to regularize their status in order to ensure that their agents will not be subjected to immediate termination of the agencies and to establish the right to claim compensation when the agent suffers damage due to the termination of the commercial agency contract, which preserves the interests of national companies that have made large investments.

• 1.1% is the growth rate of agencies' activity from 2000 to the current year.

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