It follows from the two above-mentioned articles that the legislature considered that the courts of the United Arab Emirates had jurisdiction to deal with disputes arising from the performance of commercial agent contracts between the agent and the principle and to affect any other agreement. This includes the arbitration agreement of the parties as long as the commercial agent contract is registered in the commercial register. Distribution agreements do not require the distributor to be a national of the United Arab Emirates or a company wholly owned (100%) by a national of the United Arab Emirates A mediation or dispute settlement agreement is applied in the United Arab Emirates only if it relates to a distribution agreement governed by the Federal Law No. 5 of the United Arab Emirates of 1985 on Civil Transactions. Since such an agreement is governed by the principle of freedom of contract, there is no legal restriction under the terms of the arbitration agreement set out therein. An agreement for conciliation or mediation in the context of contracts of commercial agents which, in accordance with the Federal Act No. 18 of 1981 on Commercial Agencies, is not applicable, since contractual relations and disputes arising from such agreements fall within the exclusive jurisdiction of the federal courts of the United Arab Emirates (which apply the federal law of the United Arab Emirates), parties to either a distribution agreement governed by the United Arab Emirates Federal Civil Transactions Act No. 5 of 1985 or a commercial agent agreement under the United Arab Emirates Federal Law No. 18 of 1981 on Commercial Agencies (Commerce Agency Act).
may agree to give the supplier or procuring entity (as the case may be) the authority to approve and dismiss persons who direct the activities of the merchant or agent (as the case may be). Although the supplier may terminate the distribution contract if he is not satisfied with the management agreed in the distribution contract, the termination of the commercial agent contract is only possible if a violation of the administrative provisions constitutes an “essential ground” for termination of the commercial agent contract, in accordance with the “protection against dismissal of the agent” which is provided for in Article 8 of the Commercial Agents Act. . . .