UAE Trends and Developments Contributed by: Amir Alkhaja, Gerry Rogers, Daria Selivanova and Danila Kriuchkov, Habib Al Mulla & Partners
UAE in line with the Global Anti-Base Erosion (GloBE) Model Rules (Pillar Two) as initiated as a part of the OECD G20 Base Erosion and Profit Shifting Project. Sanctions The UAE is in line with international sanctions regulations enforcing, on an ad hoc basis, the restrictions introduced by the United Nations Security Council, as well as ensuring clearance against the UN Consolidated List and a local list of terrorist individuals, entities and groups (Local Terrorist List). Businesses are also advised to undertake measures to monitor and preserve continuous compliance with any foreign sanc - tions regulations as may be applicable to particu - lar entities located in the UAE, especially those being branches or subsidiaries of foreign com - panies, being otherwise owned or controlled by a foreign person, or having foreign management. Albeit resident in the UAE, such businesses may be subject to cross-border application of foreign sanctions regulations by presence of a nexus as may be imposed by a foreign country, with the relevant civil and criminal liability attached to the regulated persons. We also note that the same aspect of cross-border sanctions applica - tion often reflects in practice on the local busi - nesses disengaging from activities sanctioned by a foreign country in order to avoid risks of secondary sanctions, or applying enhanced due diligence to individuals from certain jurisdictions resulting in more highly scrutinised and lengthy clearance processes. Commercial With the market progressively engaging with global operations, the UAE has secured its inter - national ties throughout the years to facilitate its involvement in international trade. In addition to becoming a member of international organisa - tions such as the WTO, the country has furthered
its strategic ties by becoming a party to inter - national multilateral agreements (eg, GAAT) and entering into bilateral treaties. This practice demonstrates multiple examples of collaboration in a variety of forms, including long-term trade and agency contracts, enhanced engagement via franchising and licensing, and scaling up to, amongst others, cross-border contractual and equity joint ventures. Relatively recent regulatory changes have also marked a more balanced approach to com - mercial agencies, the latter being one of the key tools used by foreign businesses seeking access to UAE customers. With its tradition - ally protectionist approach, the old law used to stand by local agents, primarily UAE nationals or companies (or businesses controlled by the same), in its defences against foreign principals. Such defences were aimed at maintaining the relationship long-term and ensuring exclusivity for the agent being a point of entry to the market. The new Commercial Agency Law, introduced in 2023, suggests flexibility to the parties in the course of their relationship and allows more dis - cretion on various aspects of collaboration, such as termination, dispute resolution and protec - tions during disputes, among others. IP Protection/Virtual Assets In line with enhancing protections in other fields, the country’s approach to protection of IP rights has been listed amongst the strategic priorities for regulatory development. The UAE partners with the global institutions such as the World Intellectual Property Organization (WIPO), and participates in international treaties and conven - tions to synchronise with unified practices. The Ministry of Economy, being the principal regulatory and registration body, offers tools
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