ABU DHABI, Sultan bin Saeed Al Mansouri, Minister of Economy, said that the UAE Cabinet's approval of various amendments to a law on commercial agencies is a key step to issuing a related amended law at a federal level.
The federal law will help support the activities of commercial agencies, support the national economy, encourage investment, ensure transparency, and balance the relationship between agents and clients, he added.
Al Mansouri went on to say that statistics from the Ministry of Economy indicate that registered commercial agencies are fully owned by Emirati companies, as per Federal Law No. 12 for 1981, noting that many of these agencies are owned by family businesses, and that the recent amendments will allow these companies to become public joint-stock companies, enabling them to further grow.
He also pointed out that the legislative authority aims to protect the sustainability of family businesses by protecting the investment of agents, to create balance and harmony between the laws on commercial agencies, commercial companies and economic needs.
He also explained that the amendments aim to reinforce the capacities and protect the investments of family businesses, as well as create new opportunities for the financial market by forming new companies, encourage citizens to invest in public joint-stock companies, protect the interest of citizens involved in franchises, especially small and medium-sized enterprises, and keep pace with the country's economic and political development.
Statistics from the ministry show that the number of registered commercial agencies in the country from 1st January to the end of November 2019 totalled 339, including 194 in Abu Dhabi, 132 in Dubai, and six in Sharjah, while the total number of registered agencies during the same period amounted to 6,469 belonging to businesses from 50 countries, a growth of 4.3 percent compared to the same period in the previous year.
Source: Emirates News Agency