COMMERCIAL LAW

The federal commercial law system of the United Arab Emirates (UAE) governs business activities, contracts, partnerships, and corporations. Some of the key features of UAE
commercial law include:
Foreign Investment: The UAE encourages foreign investment and provides several tax breaks to foreign investors. Because of its favorable business environment, tax exemptions, and strategic location as a trade and tourism hub, the United Arab Emirates (UAE) is a popular destination for foreign investment. Real estate, tourism, renewable energy, and technology are among the key sectors attracting foreign investment. In addition, the UAE has made efforts to diversify its economy away from oil and gas. To provide additional incentives, the government has established free trade zones such as the Dubai International Financial Centre, to provide additional incentives for foreign companies.
To encourage cross-border investment, the UAE has signed a number of double taxation treaties with other countries.
The UAE places a strong emphasis on foreign investment, which has been crucial to its rapid economic growth. Some of the benefits of foreign investment in the UAE are as follows:

1. Strategic Location: Dubai is strategically located at the crossroads of Europe, Asia and
   Africa making it a hub for international trade.
2. Business-Friendly Environment: Dubai has a pro-business environment with low taxes,
   minimal bureaucracy and easy access to finance.
3. Diverse Economy: Dubai has a diverse economy with significant presence in sectors like
   tourism, real estate, trade, and financial services.
4. Free Trade Zones: Dubai has multiple free trade zones that offer 100% foreign
   ownership and tax exemptions to companies operating within them.
5. Access to Talent: Dubai has a large pool of talented professionals from around the world,
   making it easy for companies to find the right talent

Overall, UAE provides a conducive environment for foreign investment and has been successful
in attracting significant foreign investment in recent years.

Contract law in the UAE is governed by the UAE Civil Code and is based on the principles of
freedom of contract, good faith, and fairness. Under UAE law, contracts must be in writing and
must comply with specific formalities to be valid and enforceable. Contracts may be oral or
written, but written contracts are preferred. The parties must have capacity to enter into a
contract, meaning they must be of legal age and have the mental capacity to understand the
terms of the agreement. In the UAE, agreements with illegal or immoral objects are not
enforceable.

1. Company Formation: The UAE has several forms of business entities, including limited
   liability companies, public joint-stock companies, private joint-stock companies and sole
   proprietorship.
   How to Form a Company in the UAE?
   To form a company in the United Arab Emirates (UAE), you can follow these steps:
2. Choose a business activity and type of company.
3. Choose a company name and make sure it’s available.
4. Register the company with the Department of Economic Development.
5. Obtain any necessary licenses and permits.
6. Rent a physical office space in the UAE.
7. Register for VAT (Value Added Tax).
8. Hire employees and obtain visas for them if necessary.
9. Open a bank account for the company.

It’s advisable to seek legal and professional advice when forming a company in the UAE, as the
process can be complex.

2. Intellectual Property: UAE has comprehensive intellectual property rights protection
   laws, including trademarks, patents, copyrights, and trade secrets

Intellectual Property (IP) law in the UAE is governed by Federal Law No. 7 of 2002 Concerning
Copyrights and Neighboring Rights and the relevant implementing regulations. The law protects
various forms of IP including copyrights, trademarks, patents, industrial designs, and trade
secrets. The UAE has also acceded to several international IP treaties, including the Berne
Convention and the World Intellectual Property Organization (WIPO) Copyright Treaty. The
competent authority for enforcing IP rights in the UAE is the Intellectual Property Rights
Department at the Ministry of Economy. Penalties for IP infringements in the UAE can include
fines, imprisonment, and/or confiscation of infringing goods.

The IP law in the UAE provides for a strong legal framework to protect and enforce IP rights.
The law covers both domestic and foreign IP owners and provides for a range of remedies in
case of infringement. In addition, the UAE has established several free zones, such as Dubai’s
International Financial Centre (DIFC), which have their own IP laws and regulations that offer
additional protection to IP rights holders. The law also provides for a trademark registration
system and a patent registration system, which enable IP owners to protect their rights and
secure exclusive use of their trademarks and patents. The UAE has also established
specialized IP courts to handle IP-related disputes, ensuring that IP cases receive prompt and
effective judicial attention.

In conclusion, the IP law in the UAE provides a comprehensive legal framework for IP protection
and enforcement, and the country continues to make efforts to enhance its IP legal system and
attract foreign investment.

Banking & Finance: The UAE has a well-developed banking sector and several laws regulating
banking activities and financial services.

The banking and finance law in the UAE is governed by the Central Bank of the UAE and UAE
Commercial Companies Law. It regulates all banking operations, including issuance of licenses
for banks, licensing and supervision of financial institutions, and protecting consumers. The law
also covers areas such as anti-money laundering, credit information, and financial reporting
requirements. Foreign banks may establish branches in the UAE, however, they must adhere to
the regulations set by the Central Bank. The UAE has also signed several double taxation
treaties to promote foreign investment in the country.

The UAE has made significant efforts to develop its banking and finance sector and attract
international investment. It has established several free trade zones with attractive tax and
business incentives, including the Dubai International Financial Centre (DIFC) and Abu Dhabi
Global Market (ADGM). These free zones operate under their own separate legal systems,
distinct from the UAE’s federal legal system. The DIFC and ADGM have their own independent
courts, legal framework, and regulatory bodies, such as the Dubai Financial Services Authority
(DFSA) and the Financial Services Regulatory Authority (FSRA) respectively, to oversee the
banking and finance sector in their jurisdiction.

The UAE has also implemented several international standards and regulations such as Basel
III and the FATF recommendations to strengthen the country’s banking and finance sector and
prevent money laundering and terrorist financing. Additionally, the UAE has signed several
agreements with other countries to promote cross-border financial cooperation and facilitate the
exchange of financial information.

Overall, the UAE has a well-developed banking and finance sector and provides a favorable
environment for investment and business activities in the region.
Labor Law: The UAE labor law governs the relationship between employers and employees
and provides protection to employees in the form of minimum wages, working hours, and health
and safety standards.

The labor law in the United Arab Emirates (UAE) is governed by Federal Law No. 8 of 1980,
also known as the UAE Labor Law. This law regulates the employment relationship between
employers and employees and provides protection for workers’ rights, including working hours,
leave entitlements, and termination of employment. Some key provisions of the UAE Labor Law
include:

1. Maximum working hours: 48 hours per week, with a maximum of 8 hours per day.
2. Annual leave: Workers are entitled to a minimum of 30 calendar days of annual leave,
   depending on their length of service.
3. Termination of employment: Employers can only terminate an employment contract with
   just cause and after following the proper procedure.
4. Wages: Workers must be paid at least the minimum wage set by the government, and
   their wages must be paid on time.
5. Health and safety: Employers must provide a safe working environment and take
   necessary precautions to protect the health and safety of workers.

This is just a summary of some of the key provisions of the UAE Labor Law. It’s important to
note that specific provisions may vary depending on the nature of the work and the type of
employment contract.

Key provisions of the UAE Labor Law:

1. End of Service Benefits: Workers are entitled to end of service benefits based on their
   length of service and the terms of their employment contract.
2. Labor Dispute Resolution: The UAE Labor Law provides a process for resolving disputes
   between workers and employers, including mediation and arbitration.
3. Discrimination: The UAE Labor Law prohibits discrimination on the basis of race, religion,
   gender, nationality, and other factors.
4. Maternity Leave: Female workers are entitled to a minimum of 45 calendar days of
   maternity leave, with full pay.
5. Sick Leave: Workers are entitled to paid sick leave in accordance with the terms of their
   employment contract.
6. Work Permits: Foreign workers must have a valid work permit in order to work in the UAE,
   and employers must ensure that their work permits are valid and up-to-date.
7. Passport Retention: Employers are prohibited from retaining the passports of workers,
   and workers must be allowed to keep their passports in their possession.

It is important to note that the UAE Labor Law is subject to change, and specific provisions may
vary depending on the nature of the work and the type of employment contract. If you have
specific questions, it’s recommended to consult with a legal professional.
Here are some additional details about the UAE Labor Law:

1. Probationary Period: Employers can include a probationary period in an employment
   contract, not exceeding six months.
2. Overtimes: Workers can be required to work overtime, but this must be compensated in
   accordance with the law and cannot exceed two hours per day.
3. Public Holidays: Workers are entitled to official public holidays and religious holidays as
   set by the government.
4. Grievance Procedure: The UAE Labor Law provides a process for workers to file
   grievances and seek remedies for disputes with their employer.
5. Health Insurance: Employers must provide health insurance coverage for their
   employees in accordance with the law.
6. Trade Unions: The UAE does not have a system for registering or recognizing trade
   unions, and collective bargaining is not permitted.
7. Termination Without Cause: In some cases, an employment contract can be terminated
   without cause by either the employer or the worker, but this must be done in accordance
   with the notice provisions set out in the law.

It’s important to note that the UAE Labor Law is a complex area of law and that specific
provisions may vary depending on the nature of the work and the type of employment contract.
It’s always recommended to seek the advice of a legal professional if you have specific
questions.

3. Dispute Resolution: The UAE has a well-established system for resolving commercial
   disputes, including courts and tribunals, as well as alternative dispute resolution
   mechanisms such as arbitration. Dispute resolution refers to the process of resolving
   disputes or conflicts between parties, which may include individuals, organizations, or
   governments. This can include various methods such as negotiation, mediation,
   arbitration, and litigation. The goal of dispute resolution is to find a mutually acceptable
   solution that satisfies the needs and interests of all parties involved. The choice of
   dispute resolution method depends on the type of dispute and the parties involved, as
   well as their preferences and resources. Dispute resolution can occur informally or
   through a formal process, depending on the nature and complexity of the dispute.
   Informal methods include negotiation and mediation, where parties work together to
   reach a mutually acceptable agreement. Formal methods include arbitration and
   litigation, where a neutral third party or a court makes a binding decision. The choice of
   dispute resolution method also depends on factors such as time, cost, privacy, and
   enforceability. It’s important for parties to choose a dispute resolution method that aligns
   with their goals and needs in order to reach a fair and lasting solution.