Non Compete Agreement Between Companies Template for United Arab Emirates

The Non-Compete Agreement Between Companies is a crucial commercial document used in the UAE business environment when companies wish to protect their legitimate business interests during or after a commercial relationship. This agreement type is particularly relevant in scenarios such as business sales, joint ventures, distribution arrangements, or strategic partnerships. Governed by UAE law, including Federal Law No. 4 of 2012 and related commercial legislation, it sets out specific restrictions on business activities, geographical areas, and time periods. The document must carefully balance business protection with UAE competition law requirements, considering both mainland UAE and free zone jurisdictions. It typically includes detailed provisions on restricted activities, enforcement mechanisms, and remedies for breach, while ensuring compliance with UAE public policy and commercial regulations.

1. Parties: Identification of the contracting companies, including full legal names, registration numbers, and registered addresses

2. Background: Context of the agreement, business relationship between parties, and purpose of the non-compete arrangement

3. Definitions: Detailed definitions of key terms including Restricted Business, Territory, Confidential Information, and Restricted Period

4. Scope of Non-Compete: Detailed description of prohibited activities, business areas, and specific restrictions

5. Geographic Limitations: Definition of the territorial scope where restrictions apply

6. Duration: Time period for which the non-compete obligations remain in effect

7. Confidentiality Obligations: Provisions regarding the protection and non-disclosure of confidential information

8. Consideration: The commercial benefit or consideration provided in exchange for the non-compete obligations

9. Enforcement and Remedies: Legal remedies available in case of breach, including injunctive relief and damages

10. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for dispute resolution

11. Execution: Signature blocks and execution formalities