Dubai Court Fines Two Firms Dh2 Million for Violating Commercial Agencies Law

The Dubai Commercial Court has ordered two companies and their managers, jointly and severally, to pay Dh2 million in compensation to an authorized commercial agent for violating the UAE Commercial Agencies Law. In addition to the principal amount, the court awarded 5% annual interest starting from the date the judgment became final until full payment is made, alongside legal costs and court fees.

The plaintiff held registered exclusive commercial agency rights for an automotive brand in the UAE dating back to 2020. The agent originally filed a lawsuit seeking Dh10 million in damages after the defendants promoted new models of the brand on social media platforms.

A court-appointed expert committee confirmed that an unauthorized sale and registration of a new 2025 vehicle took place without the consent of the exclusive agent.

In its judgment, the court emphasized that UAE federal law prohibits importing or marketing registered agency goods without the explicit permission of the authorized agent. The court also highlighted that entities operating within free zones remain subject to federal commercial agency regulations unless an explicit statutory exemption applies.