Meeting a buyer in Dubai: what happens in the first meeting

The request that comes up most often in a first meeting in Dubai is exclusive distribution. The reason is that UAE commercial agency law gives a registered agent territorial exclusivity and the power to block parallel imports at customs. The basis is Federal Decree-Law No. 3 of 2022, in force since 15 June 2023. (As of 2026.09)

First meetings usually go well. The problem is what comes after. Agree verbally to a request without knowing what legal effect it carries, and unwinding it takes a year at minimum.

01. There is a legal reason behind “give us exclusivity”

The law currently governing commercial agency in the UAE is Federal Decree-Law No. 3 of 2022. It was issued on 13 December 2022, published in the Official Gazette on 15 December, and came into force on 15 June 2023, replacing Federal Law No. 18 of 1981. Some material circulating in Korea is still written against the old law, so care is needed.

The law gives a registered commercial agent three things.

Territorial exclusivity (Article 7(1)): the principal may appoint a single agent treating the whole country as one territory, or appoint an agent per emirate; distribution of the goods or services within that territory is that agent's exclusive right.

The power to block at customs (Article 20): goods under a registered commercial agency may not be brought in for trading purposes through any route other than the agent, and customs may not release such imports without the approval of the agent or the Ministry of Economy.

Commission even on direct sales (Article 8): the agent receives commission on transactions within its territory even where the principal concluded them directly.

A registered commercial agency, in other words, is not a contractual promise but a right enforced at the customs counter. There is a reason the other side asks for exclusivity.

02. A registered agent and a distributor are different contracts

Registration is a condition of validity for a commercial agency. Article 3 provides that a commercial agency not entered in the commercial agents register is not valid. Article 4 requires a written and notarised contract with the principal and registration with the Ministry of Economy.

Dealing with an unregistered distributor is governed by ordinary contract law. No statutory exclusivity, no power to block at customs, and no statutory notice period attach.

The eligibility requirements differ too. Article 2 limits commercial agents to UAE national individuals, public legal persons, entities owned by public bodies, entities wholly owned by UAE nationals, and public joint stock companies with UAE national ownership of at least 51%. Article 2(2), however, allows the Cabinet to grant exceptions for international companies with no UAE ownership.

03. Ending it takes a year

Article 10(1) requires notice of early termination to be given one year before the intended end date, or before half the contract term has elapsed, whichever is shorter. Article 10(3) applies the same notice period to a refusal to renew.

Article 11 provides that where the agency ends through a refusal to renew, the agent may claim compensation, and that a termination causing loss gives rise to a claim. It names in particular the case where the agent contributed to clear and substantial success and is deprived of the benefit by the termination.

The dispute procedure is also set. Article 24(1) requires disputes to go first to the Commercial Agencies Committee, and no action may be brought in court before that referral. The committee decides within 120 days of submission. Article 26 permits an agreement to arbitrate, and arbitration takes place within the UAE unless the parties agree otherwise.

04. Price decides it

The US Department of Commerce's UAE country commercial guide describes price as a central factor in the UAE market, noting that in selling to traders — an important business model in the UAE — there is no substitute for price competitiveness.

The distribution cost structure is worth knowing before you go in. According to the same source, once listing fees per SKU, annual rebates, no-return fees, annual promotional commitments, shelf maintenance and merchandiser costs are taken into account, roughly 25% is added to the product cost depending on turnover, and retail chains then add a margin of 20–25% on top. VAT has been 5% since 2018.

Price changes are not free either. Large retailers do not accept price movements without sound justification, and even with justification they often accept only after confirming that competitors have made the same change.

After-sales support is a condition too. The same source describes customer service and after-sales service as decisive success factors in the UAE market, and notes that the current business environment favours foreign companies working with local distributors that hold adequate parts stock and can perform regular maintenance.

05. The calendar is half the battle

The UAE federal government's official weekend is Saturday and Sunday, announced in December 2021 and effective from 1 January 2022. Many private companies run Monday to Thursday 08:00–18:00 and Friday 08:00–12:00. During Ramadan, guidance from the Ministry of Human Resources and Emiratisation (MOHRE) reduces private sector working hours by two hours a day, under Federal Decree-Law No. 33 of 2021 and its implementing regulations.

There is a separate exhibition season. US Department of Commerce material notes that many exhibitions and conferences are held in the UAE from late September through May. The main dates confirmed on official websites are as follows.

Beautyworld Dubai 2026: 6–8 Oct 2026, Dubai World Trade Centre, Messe Frankfurt. The name has changed from Beautyworld Middle East.

Big 5 Global 2026: 23–26 Nov 2026, Dubai World Trade Centre, dmg events

GITEX GLOBAL 2026: 7–11 Dec 2026, Dubai World Trade Centre. This differs from the October slot of previous years, so the dates are worth confirming.

Gulfood 2027: 15–19 Mar 2027, across two venues, Dubai World Trade Centre and Dubai Exhibition Centre

Outdoor work is prohibited between 12:30 and 15:00 from 15 June to 15 September each year (Ministerial Resolution No. 44 of 2022).

06. Payment is slow

The trade financing section of the US Department of Commerce's UAE guide states that collection periods in the UAE tend to be slower than in the United States and Europe, and that delays of several months, and sometimes years, are not unusual.

As to instruments, letters of credit are widely used in foreign trade, commonly at sight, deferred or revolving. Parties frequently choose the ICC's Uniform Customs and Practice for Documentary Credits (UCP) over local law. Cheques are also an important instrument for large transactions, and wire transfers are widely used.

The same source notes that fraud and scams frequently target foreign companies, particularly SMEs, and recommends due diligence before trading. Payment delays are also substantial in government procurement, where it recommends letters of credit, export finance or advance payment.

In summary

Three things are actually decided in a first meeting in Dubai: the type of contract, the territory, and a price that accounts for distribution margins and listing costs. Go in having prepared those three and the meeting becomes a negotiation; go in without them and it becomes a session for hearing the other side's terms.