Hadef In The UAE Courts - November 2011

Bi-monthly report based on practical experience of our team of advocates in the courts of the UAE. This month, Michael Dark and Mahmoud Awad discuss the implications of foreign law and arbitration clauses in distribution or agency agreements.

With Dubai's growing economy, many international brands are looking to enter the Dubai market through an exclusive distributor or agent. Because of ignorance or uncertainty about UAE law, the principal may try to insist on the insertion of clauses that make the distribution or agency agreement (hereinafter referred to as "Distribution Agreement") subject to foreign law and jurisdiction.

However, in circumstances where a dispute arises, such clauses can produce a significant amount of uncertainty.