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Dubai Court Orders Companies and Managers to Pay Dhs2 Million Compensation

The Dubai Commercial Court ordered two companies and their managers to pay Dhs2 million in compensation for infringing on an exclusive commercial agency. The plaintiff has held registered agency rights for an automobile brand in the UAE since 2020. The defendants unlawfully promoted and sold a protected 2025 model vehicle via social media.

Published Source: Gulf Today
Issuing authority
Dubai Commercial Court
Jurisdiction
United Arab Emirates
Stage
Final rule
Official source
www.gulftoday.ae
Illustration: A modern courtroom building exterior in Dubai under clear daylight, with clean contemporary architecture representing commercial legal p
Illustration

The Dubai Commercial Court has ruled on a dispute regarding the infringement of an exclusive commercial agency, ordering two companies and their managers jointly and severally to pay Dhs2 million in compensation, Gulf Today reported.

The plaintiff has held registered exclusive commercial agency rights for an automobile brand in the UAE since 2020. The party had filed a claim seeking Dhs10 million in damages and lost profits.

A court-appointed expert committee confirmed that the defendant companies unlawfully promoted and sold a 2025 model vehicle of the protected brand via social media without authorization.

In addition to the compensation, the court ordered 5 percent annual interest from the date the judgment becomes final until full payment, along with court costs and legal fees. The ruling underscores legal protections under UAE commercial agency regulations against unauthorized grey-market vehicle sales.

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