Document background
The Representation Agreement is a crucial document for companies seeking to establish or maintain a commercial presence in the United Arab Emirates through a local representative or agent. This agreement type is specifically regulated under UAE Federal Law No. 18 of 1981 and subsequent amendments, requiring careful consideration of local legal requirements and commercial practices. The document is essential for businesses entering the UAE market, particularly when they need a local presence but don't want to establish their own entity. It typically covers appointment terms, territorial scope, commission structures, performance expectations, and compliance requirements. The agreement must balance the principal's commercial interests with the strong protective rights that UAE law grants to commercial agents, making it a critical tool for market entry and business expansion strategies in the UAE.
