UNITED ARAB EMIRATES

Updated on 02/10/2025

A. Macro-economic data

• General data [1]

-Population 2021: 9,365,145 inhabitants[2]
-Area: 83,600 km2[3]
-Density: 111 inhabitants/km2[4]
-GDP (nominal) 2022: $507 billion
-GDP/capita 2022: $53,708
-GDP (PPP) 2022: $835 billion
-GDP (PPP)/capita 2022: $88,489
-Growth rate 2022: 7.9%
-GNI/capita (PPP) 2022: $88,050
-HDI 2021: 0.911[5]
-Literacy rate: 98%
-Life expectancy 2022: 79.5 years old[6]

Policy [4]

Independent since 1971, the United Arab Emirates is a Federation, under a monarchy system, consisting of seven emirates (Abu Dhabi, Dubai, Sharjah, Fujairah, Ajman, Umm al-Quwain and Ras al-Khaimah)[7].

The Federation is headed by the Supreme Council, made up of the seven emirs and the Prime Minister, who must be a member of the Al-Maktoum royal family (Dubai royal family). The Supreme Council elects the President, who must be a member of the Al-Nahyan royal family (Abu Dhabi royal family). At the time of writing, the President is Muhammad ibn Zayid Al-Nahyan[8].

Parliament has an advisory role. It is embodied by the 40-member Federal National Council[9].

Each emirate has its own government and retains budgetary and economic autonomy.

The United Arab Emirates have set up a system for redistributing oil revenues to guarantee the Emirati population have free access to healthcare and education.

Internationally, the United Arab Emirates has opened up and become a key player on the political scene. Recently, the country hosted COP 28 (November 30 to December 12, 2023), welcomed Pope Francis in February 2019 and created the Abrahamic Family House, bringing together mosque, church and synagogue. The United Arab Emirates aims to be a country of dialogue and tolerance, and pursues a "zero enemies" policy[10].

Population[15]

The Emirati population is largely urban (87%), concentrated mainly in Dubai and Abu Dhabi. The majority of the population are immigrants (88%), notably from Egypt, Pakistan, Bangladesh and India.
15% of the Emirati population is under the age of 15, 83% is between 15 and 65 and only 2% is over 65.
The five largest cities in the United Arab Emirates are Dubai (2,401,067 inhabitants), Sharjah (1,274,749), Abu Dhabi (1,202,756), Al Ain (496,205) and Ajman (490,035). [16]

Economic development

The United Arab Emirates is the world's 33rd biggest economy in terms of nominal GDP. The UAE has joined a number of major organizations, including the WTO, the Organization of Petroleum Exporting Countries (OPEC) and the Gulf Cooperation Council.

The Covid-19 crisis plunged the Federation into recession in 2020, with growth falling to -4.8%. Heavily dependent on oil, the United Arab Emirates benefited from the rise in the price of oil in 2022, with growth rising to 7.9%.

Dubai is an exception in that its economy is not heavily dependent on hydrocarbons, and is based on tourism, real estate and logistics services.

Abu Dhabi's economy accounts for 60% of the UAE Federation's GDP, making it the dominant emirate in economic terms. The UAE's second-largest economy is Dubai (26% of GDP).

Following falling oil prices in 2014 and the Covid-19 pandemic in 2020, the UAE has diversified its economy. Hydrocarbons now account for a third of GDP, whereas previously they were the main source.

In 2021, the United Arab Emirates had a low unemployment rate of 3.1%[12]. The UAE's inflation rate was +5% in 2022.

The most abundant resource in the United Arab Emirates is hydrocarbons. In fact, the United Arab Emirates is the world's 7th largest oil producer[14]. Agriculture accounts for 0.9% of GDP and employs 1.4% of the working population. Mining and industry account for 47.5% of GDP and employ 34.2% of the working population. Services account for 51.6% of GDP and employ 64.4% of the workforce.

The tourism sector generated $24.6 billion in revenues in 2020.

Resources

According to UNCTAD, in 2023, new foreign investment projects in the United Arab Emirates increased by 28% compared to the previous year[17]. In 2021, the Emirate of Dubai ranked first in the world for the number of foreign direct investment projects, with 441. The leading investors in Dubai were the United States, followed by the United Kingdom and India[18].

The United Arab Emirates' main investor countries are the United Kingdom, India, the United States, France and Saudi Arabia[19].

The World Bank has ranked the United Arab Emirates Federation 16th worldwide among countries where it is easy to do business, in its "Doing Business" ranking[20].

Foreign investment

I. Economic data

[1] Unless otherwise stated, the general data comes from the World Bank data.
[2] Atlas socio-économique des pays du monde, Larousse, édition 2024
[3] Same
[4] Same
[5] Same
[6] Ibid
[7] Atlas socio-économique des pays du monde, Larousse, édition 2024
[8] Source : Ministère de l'Economie, des Finances et de l'Industrie
[9] Source : Ministère de l'Europe et des Affaires Etrangères

[10] Source : Ministère de l'Europe et des Affaires Etrangères
[11] Sauf information contraire, les informations ci-dessous proviennent du Ministère de l'Economie, des Finances et de l'Industrie

[12] Atlas socio-économique des pays du monde, Larousse, 2024 edition
[13] Unless otherwise indicated, the information below comes from the Atlas socio-économique des pays du monde, Larousse, 2024 edition
[14] Source : GEO
[15] Unless otherwise stated, the data below comes from the Atlas socio-économique des pays du monde, Larousse, 2024 edition.
[16] Source : Giflex.com
[17] Source : TEAM FRANCE

B. Economic data specific to franchising

Historical background

The first major international retailers arrived in the United Arab Emirates in the late 1970s, early 1980s[21].

Contract content

The price of a franchise contract in the United Arab Emirates varies according to the franchise on offer, and can range from a few hundred euros to millions of euros. For example, Nong Fah (energy franchise) starts at $140 as an initial fee, while Doubletree by Hilton (hotel franchise) is offered at $22,850,605 as a franchise fee[29] .

Trade shows

The E-Franchise days, an annual event entirely online over 2 days, brings together brands, investors and franchisees wishing to expand within the Gulf Cooperation Council[24].

Institution

The Emirati Franchise Development Association (FAD)[22] aims to develop, support and diversify franchising activities in the United Arab Emirates. The FAD has set up a code of ethics, binding on its members, establishing a framework between franchisor and franchisee[23].

Statistics

South Africa has around 800 franchise systems, spanning 14 sectors [23]. In 2018, there were 45,011 outlets in South Africa. 84% of franchisees rate their relationship with the franchisor as very good or good [24].

South Africa is now home to 68,000 franchisees [25]. 40% of them are based in the Gauteng province [26].

The biggest sector in the franchise business is fast food. South Africa has around 85,000 restaurants and over 850 franchises. The international food market is estimated to be worth $4.9 billion by 2026 [27].

In 2022, South Africa had 1,907 businesses and companies in a state of bankruptcy [28].

Special features

To set oneself up throughout the United Arab Emirates (UAE), it is important to bear in mind that this is not just one country, but rather seven emirates, making up seven distinct markets[30].

Economic impact

The franchise sector, taking all business sectors as a whole, brings in 30 billion dollars in the United Arab Emirates[31].

International

The major international brands in the franchising sector have successfully established themselves in the United Arab Emirates, as shown by the ranking of the best franchises in the United Arab Emirates[32]:

KFC, from the United States (initial investment: $1,442,550)
McDonald's, from the United States (initial investment: $464,500)
TokTok, from the Philippines (initial investment: $1,215)
Jollibee, from the Philippines (initial investment: $450,000)
Krispy Kreme, from the United States (initial investment: $275,000)

American brands are the most numerous, accounting for 70% of the market[33].

Statistics

The estimated annual growth of the franchise sector in the United Arab Emirates is 15%[25].

The main sectors where growth is expected to increase in the United Arab Emirates are education, healthcare, personal services and online franchises (IT services, marketing, accounting services, etc.)[26].

The leader in franchising remains the food service sector. In 2022, franchise chain sales in the food service sector were estimated at $3 billion. This is followed by the accommodation sector with an estimated $824.6 million, the retail sector with an estimated $201.5 million and leisure with sales of $161.5 million[27].

Franchises are located in Dubai and Abu Dhabi. Shopping malls in both emirates boast numerous franchises. The city of Dubai offers some 100 shopping malls, including 15 major shopping centers, while Abu Dhabi has five major shopping centers[28].

[21] Source : Global Franchise

[22] Tél : +971 2 6177496, adresse e-mail : info@fad.ae[23] Source : Emirates Association for Franchise Developpement
[24] Source : Index

[25] https://www.gorodissky.com/publications/articles/uae-franchise-regulations-in-brief/
[26] Source : LinkedIn

[27] Source : Statista

[28] Source : Franchise.org
[29] Source : Top Franchise
[30] Source : Global Franchise
[31] Source : Top Franchise
[32] Source : Top Franchise
[33] Source : Top Franchise

Applicable legislation

There is no specific legislation governing franchise agreements in the United Arab Emirates. Consequently, the Federal Law on the Organization of Commercial Agencies[34] and the Civil Code[35] apply to franchise agreements.

Sections 1 and 2 of the Federal Law on the Organization of Commercial Agencies apply to agreements under which a foreign company is represented by an agent - who may be either a citizen, a legal entity under public law, a private legal entity owned by a legal entity under public law, or a private legal entity 100% owned by an Emirati natural person - for the distribution, sale, exhibition or offer of goods or services within the State in exchange for a commission.

If the franchisee is considered to be a commercial agent, the franchise agreement must be in writing and filed with the Ministry as a commercial agency contract.

In the event that the franchise agreement does not fall within the scope of the law on the organization of commercial agencies, i.e., if the franchisee is not a UAE national, the franchise agreement will be the law of the parties, subject to compliance with the Civil Code, competition law, trademark law and foreign investment law.

Section 129 of the UAE Civil Code specifies that for a contract to be valid, in addition to the fact that the parties must have the capacity to contract, the parties must agree on the essential terms of the contract, the purpose of the contract must be defined and the contract must have a lawful aim.

Jurisdiction and applicable law

The United Arab Emirates have ratified the New York Convention on International Arbitration[36], facilitating the recognition and enforcement of arbitral awards made in the territory of the States parties.

The country has also signed up to the UNCITRAL Model Law on International Commercial Arbitration, with the 2006 amendments. The purpose of the UNCITRAL Model Law on International Commercial Arbitration is to modernize the laws of member countries, in order to take account of the characteristics and needs of international trade in arbitration proceedings.

Contract perfomance

As there is no franchise-specific legislation, the contractual relationship between franchisor and franchisee is governed mainly by the UAE Civil Code, and is therefore largely based on freedom of contract.
The aforementioned duty of good faith applies during the performance of the contract. Indeed, Section 246 of the aforementioned Civil Code specifies that the contract must be carried out in accordance with its content and in a manner consistent with the requirements of good faith.

Pre-contractual information

There is no obligation to provide pre-contractual information unless the parties have contractually agreed otherwise.

The relationship between the parties are nevertheless based on a constant principle of good faith, which is established by Section 246 of the above-mentioned UAE Civil Code, which specifies that the contract negotiation phase must be carried out in good faith. Thus, should the parties decide to disclose pre-contractual information, they must do so in compliance with this principle of good faith.

Trademarks

The United Arab Emirates has adopted a new federal trademark law[37], which came into force on January 2, 2022.

Application for registration is made to the Ministry of Economy. The application must be made in Arabic[38].

Under Section 21 of the Federal Trademark Law, trademarks are protected for ten years from the date of application.

On September 28, 2021, the United Arab Emirates became the 109th country to join the Madrid System[39]. The Madrid System[40] enables companies to obtain trademark protection in up to 130 countries by filing a single international application, in a single language, with the World Intellectual Property Organization (WIPO). Under Article 6 of the Madrid Agreement, trademark registration is valid for 20 years.

To go further

In the United Arab Emirates (UAE), trademark applications can be handled both nationally and through WIPO. Examinations cover both formality and substantive aspects. The UAE allows only mono-class trademark registrations. While usage is not mandatory, trademarks are vulnerable to cancellation if not used within five years from the date of registration. To develop a franchise in this country, it is advisable to cover "Business assistance relating to franchising" and "retail services" which are both accepted under class 35 by the trademark office. Regarding the franchising agreement's recordal, it is not compulsory though advisable for legal advantages. However, licensing must be in writing, authenticated, certified, and translated into Arabic if necessary. As per Article 31 of UAE law 36 of 2021, it is not required to be annotated or recorded in the register.

II. Legal information

A. Legal information directly related to the franchising

[34] No. 3/2022
[35] Federal Law No. 5/1985
[36] Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958
[37] Federal Decree-Law No. 36/2021
[38] Source : ICLG
[39] Source : WIPO

[40] Madrid Agreement Concerning the International Registration of Marks

B. Peripheral legal data

Competition law

Competition law is regulated by the new Competition Act[41], which came into force on December 29, 2023, replacing the former Competition Act no. 4/2012.

The new Competition Act prohibits agreements that restrict competition in the market. More specifically, agreements that:

Directly or indirectly fix the purchase or sale price of goods or services;
Freeze or restrict production, development, distribution and marketing;
Restrict the freedom to supply goods or services in the relevant market.

The new Competition Act specifies that restrictions on competition which are permitted under the law on commercial agencies, such as agreements allocating customers on the basis of geographical areas or distribution centers over a period of time, are permissible.

The United Arab Emirates has set up a national authority to ensure compliance with this law. The authority is known as the Competition Regulatory Committee, established in 2018 within the UAE Ministry of Economy.

Personal data

The United Arab Emirates have adopted the Federal Law for the Protection of Personal Data in the United Arab Emirates (FDPL)[42].

The law defines personal data as any data relating to a natural person who is identified, or can be identified, directly or indirectly, through the combination of data, by reference to an identifier such as his or her name, voice, image, identification number, physical, economic, cultural or social characteristic, etc.[43]

The legal grounds for processing data are the consent of the data subject (Article 3 of the FDPL), necessity for entering into or performance of a contract to which the data subject is a party, when processing arises from a legal obligation, when processing is necessary to protect the interests of the data subject, or to protect the public interest, to assess the employee's ability to work or the provision of health or social care and if processing is necessary for archiving purposes or historical scientific research (Article 4 of the FDPL).

The data subject will have a right of access to his/her processed data, the right to data portability, the right to rectification, the right to be forgotten, the right to limit processing and the right to object to decisions taken by automated processing of his/her personal data.

The UAE Data Office is the competent authority to ensure compliance with the Federal Personal Data Protection Act[44].

Article 10 of the FDPL provides for the obligation to appoint a data protection officer if the processing makes use of new technologies, entailing a high risk for the confidentiality and privacy of personal data, if the processing involves a systematic and in-depth assessment of sensitive personal data (including profiling and automated processing) and if the processing is carried out on a large scale of sensitive personal data.

Some emirates have their own data protection regulations. For example, Dubai has adopted the Data Protection Law and Abu Dhabi has adopted the Data Protection Regulations[45].

Special provisions for foreign investments

Foreign investors are authorized to hold 100% of the capital of companies established in so-called free trade zones. For companies located outside these zones, foreign companies must have a majority holding of at least 51%, that complies with Article 10 of the Federal Law on Commercial Companies.[46]

However, the law on foreign direct investment[47] has introduced some flexibility, allowing a foreign entity to hold 100% of the shares of a company incorporated outside the free trade zones, depending on the sector (hydrocarbon industry, restaurant management, or retail sales in non-specialized stores).

Emirati Franchise Development Association (FAD): https://www.fad.ae/en/Pages/Home.aspx;
Personal data: https://ai.gov.ae/personal-data-protection-law/;
Ministry of the Economy: https://www.moec.gov.ae/en/competition-complaints;
UAE Bureau of Statistics: https://fcsc.gov.ae/en-us/Pages/Statistics/Statistics.aspx;
World Bank: https://www.banquemondiale.org/fr/home ;
The International Centre for Settlement of Investment Disputes: https://uncitral.un.org/fr

Main websites

[41] Federal Decree-Law No. 36/2023.
[42] N°45/2021
[43] https://ai.gov.ae/personal-data-protection-law/
[44] Federal Decree-Law No. 44/2021
[45] Source : ADGM
[46] Law n°2/2015
[47] Federal Decree-Law n°19/2018

I. Economic data

A. Macro-economic data

- General data[1]

Population 2021: 9,365,145 inhabitants[2]
Area: 83,600 km2[3]
Density: 111 inhabitants/km2[4]
GDP (nominal) 2022: $507 billion
GDP/capita 2022: $53,708
GDP (PPP) 2022: $835 billion
GDP (PPP)/capita 2022: $88,489
Growth rate 2022: 7.9%
GNI/capita (PPP) 2022: $88,050
HDI 2021: 0.911[5]
Literacy rate: 98%
Life expectancy 2022: 79.5 years old[6]

- Policy

Independent since 1971, the United Arab Emirates is a Federation, under a monarchy system, consisting of seven emirates (Abu Dhabi, Dubai, Sharjah, Fujairah, Ajman, Umm al-Quwain and Ras al-Khaimah)[6].

The Federation is headed by the Supreme Council, made up of the seven emirs and the Prime Minister, who must be a member of the Al-Maktoum royal family (Dubai royal family). The Supreme Council elects the President, who must be a member of the Al-Nahyan royal family (Abu Dhabi royal family). At the time of writing, the President is Muhammad ibn Zayid Al-Nahyan[7].

Parliament has an advisory role. It is embodied by the 40-member Federal National Council[8].

Each emirate has its own government and retains budgetary and economic autonomy.

The United Arab Emirates have set up a system for redistributing oil revenues to guarantee the Emirati population have free access to healthcare and education.

Internationally, the United Arab Emirates has opened up and become a key player on the political scene. Recently, the country hosted COP 28 (November 30 to December 12, 2023), welcomed Pope Francis in February 2019 and created the Abrahamic Family House, bringing together mosque, church and synagogue. The United Arab Emirates aims to be a country of dialogue and tolerance, and pursues a "zero enemies" policy[9].

- Economic development[11]

The United Arab Emirates is the world's 33rd biggest economy in terms of nominal GDP. The UAE has joined a number of major organizations, including the WTO, the Organization of Petroleum Exporting Countries (OPEC) and the Gulf Cooperation Council.

The Covid-19 crisis plunged the Federation into recession in 2020, with growth falling to -4.8%. Heavily dependent on oil, the United Arab Emirates benefited from the rise in the price of oil in 2022, with growth rising to 7.9%.

Dubai is an exception in that its economy is not heavily dependent on hydrocarbons, and is based on tourism, real estate and logistics services.

Abu Dhabi's economy accounts for 60% of the UAE Federation's GDP, making it the dominant emirate in economic terms. The UAE's second-largest economy is Dubai (26% of GDP).

Following falling oil prices in 2014 and the Covid-19 pandemic in 2020, the UAE has diversified its economy. Hydrocarbons now account for a third of GDP, whereas previously they were the main source.

In 2021, the United Arab Emirates had a low unemployment rate of 3.1%[12]. The UAE's inflation rate was +5% in 2022.

-Ressources[13]

The most abundant resource in the United Arab Emirates is hydrocarbons. In fact, the United Arab Emirates is the world's 7th largest oil producer[14]. Agriculture accounts for 0.9% of GDP and employs 1.4% of the working population. Mining and industry account for 47.5% of GDP and employ 34.2% of the working population. Services account for 51.6% of GDP and employ 64.4% of the workforce.

The tourism sector generated $24.6 billion in revenues in 2020.

- Population[15]

The Emirati population is largely urban (87%), concentrated mainly in Dubai and Abu Dhabi. The majority of the population are immigrants (88%), notably from Egypt, Pakistan, Bangladesh and India.

15% of the Emirati population is under the age of 15, 83% is between 15 and 65 and only 2% is over 65.

The five largest cities in the United Arab Emirates are Dubai (2,401,067 inhabitants), Sharjah (1,274,749), Abu Dhabi (1,202,756), Al Ain (496,205) and Ajman (490,035). [16]

- Foreign investment

According to UNCTAD, in 2023, new foreign investment projects in the United Arab Emirates increased by 28% compared to the previous year[17]. In 2021, the Emirate of Dubai ranked first in the world for the number of foreign direct investment projects, with 441. The leading investors in Dubai were the United States, followed by the United Kingdom and India[18].

The United Arab Emirates' main investor countries are the United Kingdom, India, the United States, France and Saudi Arabia[19].

The World Bank has ranked the United Arab Emirates Federation 16th worldwide among countries where it is easy to do business, in its "Doing Business" ranking[20].

B. Economic data specific to franchising

- Historical background

The first major international retailers arrived in the United Arab Emirates in the late 1970s, early 1980s[21].

- Institution

The Emirati Franchise Development Association (FAD)[22] aims to develop, support and diversify franchising activities in the United Arab Emirates. The FAD has set up a code of ethics, binding on its members, establishing a framework between franchisor and franchisee[23].

- Trade shows[25]

The E-Franchise days, an annual event entirely online over 2 days, brings together brands, investors and franchisees wishing to expand within the Gulf Cooperation Council[24].

- Statistics

The estimated annual growth of the franchise sector in the United Arab Emirates is 15%[25].

The main sectors where growth is expected to increase in the United Arab Emirates are education, healthcare, personal services and online franchises (IT services, marketing, accounting services, etc.)[26].

The leader in franchising remains the food service sector. In 2022, franchise chain sales in the food service sector were estimated at $3 billion. This is followed by the accommodation sector with an estimated $824.6 million, the retail sector with an estimated $201.5 million and leisure with sales of $161.5 million[27].

Franchises are located in Dubai and Abu Dhabi. Shopping malls in both emirates boast numerous franchises. The city of Dubai offers some 100 shopping malls, including 15 major shopping centers, while Abu Dhabi has five major shopping centers[28].

- Contract content

The price of a franchise contract in the United Arab Emirates varies according to the franchise on offer, and can range from a few hundred euros to millions of euros. For example, Nong Fah (energy franchise) starts at $140 as an initial fee, while Doubletree by Hilton (hotel franchise) is offered at $22,850,605 as a franchise fee[29] .

- Special features

To set oneself up throughout the United Arab Emirates (UAE), it is important to bear in mind that this is not just one country, but rather seven emirates, making up seven distinct markets[30].

- Economic impact

The franchise sector, taking all business sectors as a whole, brings in 30 billion dollars in the United Arab Emirates[31].

- International

The major international brands in the franchising sector have successfully established themselves in the United Arab Emirates, as shown by the ranking of the best franchises in the United Arab Emirates[32]:

KFC, from the United States (initial investment: $1,442,550)
McDonald's, from the United States (initial investment: $464,500)
TokTok, from the Philippines (initial investment: $1,215)
Jollibee, from the Philippines (initial investment: $450,000)
Krispy Kreme, from the United States (initial investment: $275,000)

American brands are the most numerous, accounting for 70% of the market[33].

II. Legal information

A. Legal information directly related to franchising

- Applicable legislation

There is no specific legislation governing franchise agreements in the United Arab Emirates. Consequently, the Federal Law on the Organization of Commercial Agencies[34] and the Civil Code[35] apply to franchise agreements.

Sections 1 and 2 of the Federal Law on the Organization of Commercial Agencies apply to agreements under which a foreign company is represented by an agent - who may be either a citizen, a legal entity under public law, a private legal entity owned by a legal entity under public law, or a private legal entity 100% owned by an Emirati natural person - for the distribution, sale, exhibition or offer of goods or services within the State in exchange for a commission.

If the franchisee is considered to be a commercial agent, the franchise agreement must be in writing and filed with the Ministry as a commercial agency contract.

In the event that the franchise agreement does not fall within the scope of the law on the organization of commercial agencies, i.e., if the franchisee is not a UAE national, the franchise agreement will be the law of the parties, subject to compliance with the Civil Code, competition law, trademark law and foreign investment law.

Section 129 of the UAE Civil Code specifies that for a contract to be valid, in addition to the fact that the parties must have the capacity to contract, the parties must agree on the essential terms of the contract, the purpose of the contract must be defined and the contract must have a lawful aim.

- Pre-contractual information

There is no obligation to provide pre-contractual information unless the parties have contractually agreed otherwise.

The relationship between the parties are nevertheless based on a constant principle of good faith, which is established by Section 246 of the above-mentioned UAE Civil Code, which specifies that the contract negotiation phase must be carried out in good faith. Thus, should the parties decide to disclose pre-contractual information, they must do so in compliance with this principle of good faith.

- Contract performance

As there is no franchise-specific legislation, the contractual relationship between franchisor and franchisee is governed mainly by the UAE Civil Code, and is therefore largely based on freedom of contract.

The aforementioned duty of good faith applies during the performance of the contract. Indeed, Section 246 of the aforementioned Civil Code specifies that the contract must be carried out in accordance with its content and in a manner consistent with the requirements of good faith.

- Jurisdiction and applicable law

The United Arab Emirates have ratified the New York Convention on International Arbitration[36], facilitating the recognition and enforcement of arbitral awards made in the territory of the States parties.

The country has also signed up to the UNCITRAL Model Law on International Commercial Arbitration, with the 2006 amendments. The purpose of the UNCITRAL Model Law on International Commercial Arbitration is to modernize the laws of member countries, in order to take account of the characteristics and needs of international trade in arbitration proceedings

- Trademarks

The United Arab Emirates has adopted a new federal trademark law[37], which came into force on January 2, 2022.

Application for registration is made to the Ministry of Economy. The application must be made in Arabic[38].

Under Section 21 of the Federal Trademark Law, trademarks are protected for ten years from the date of application.

On September 28, 2021, the United Arab Emirates became the 109th country to join the Madrid System[39]. The Madrid System[40] enables companies to obtain trademark protection in up to 130 countries by filing a single international application, in a single language, with the World Intellectual Property Organization (WIPO). Under Article 6 of the Madrid Agreement, trademark registration is valid for 20 years.

To go further by MIIP

In the United Arab Emirates (UAE), trademark applications can be handled both nationally and through WIPO. Examinations cover both formality and substantive aspects. The UAE allows only mono-class trademark registrations. While usage is not mandatory, trademarks are vulnerable to cancellation if not used within five years from the date of registration. To develop a franchise in this country, it is advisable to cover "Business assistance relating to franchising" and "retail services" which are both accepted under class 35 by the trademark office. Regarding the franchising agreement's recordal, it is not compulsory though advisable for legal advantages. However, licensing must be in writing, authenticated, certified, and translated into Arabic if necessary. As per Article 31 of UAE law 36 of 2021, it is not required to be annotated or recorded in the register.

B. Peripheral legal data

- Competition law

Competition law is regulated by the new Competition Act[41], which came into force on December 29, 2023, replacing the former Competition Act no. 4/2012.

The new Competition Act prohibits agreements that restrict competition in the market. More specifically, agreements that:

Directly or indirectly fix the purchase or sale price of goods or services;
Freeze or restrict production, development, distribution and marketing;
Restrict the freedom to supply goods or services in the relevant market.

The new Competition Act specifies that restrictions on competition which are permitted under the law on commercial agencies, such as agreements allocating customers on the basis of geographical areas or distribution centers over a period of time, are permissible.

The United Arab Emirates has set up a national authority to ensure compliance with this law. The authority is known as the Competition Regulatory Committee, established in 2018 within the UAE Ministry of Economy.

- Personal data

The United Arab Emirates have adopted the Federal Law for the Protection of Personal Data in the United Arab Emirates (FDPL)[42].

The law defines personal data as any data relating to a natural person who is identified, or can be identified, directly or indirectly, through the combination of data, by reference to an identifier such as his or her name, voice, image, identification number, physical, economic, cultural or social characteristic, etc.[43]

The legal grounds for processing data are the consent of the data subject (Article 3 of the FDPL), necessity for entering into or performance of a contract to which the data subject is a party, when processing arises from a legal obligation, when processing is necessary to protect the interests of the data subject, or to protect the public interest, to assess the employee's ability to work or the provision of health or social care and if processing is necessary for archiving purposes or historical scientific research (Article 4 of the FDPL).

The data subject will have a right of access to his/her processed data, the right to data portability, the right to rectification, the right to be forgotten, the right to limit processing and the right to object to decisions taken by automated processing of his/her personal data.

The UAE Data Office is the competent authority to ensure compliance with the Federal Personal Data Protection Act[44].

Article 10 of the FDPL provides for the obligation to appoint a data protection officer if the processing makes use of new technologies, entailing a high risk for the confidentiality and privacy of personal data, if the processing involves a systematic and in-depth assessment of sensitive personal data (including profiling and automated processing) and if the processing is carried out on a large scale of sensitive personal data.
Some emirates have their own data protection regulations. For example, Dubai has adopted the Data Protection Law and Abu Dhabi has adopted the Data Protection Regulations[45].

- Special provisions for foreign investments

Foreign investors are authorized to hold 100% of the capital of companies established in so-called free trade zones. For companies located outside these zones, foreign companies must have a majority holding of at least 51%, that complies with Article 10 of the Federal Law on Commercial Companies.[46]

However, the law on foreign direct investment[47] has introduced some flexibility, allowing a foreign entity to hold 100% of the shares of a company incorporated outside the free trade zones, depending on the sector (hydrocarbon industry, restaurant management, or retail sales in non-specialized stores).