Legislation Details
- Full Title: Federal Law for Allowing the Citizens of GCC Countries to Practice the Whole or Retail Trade in the Country
- Law Type: Federal Law
- Law Number: 2 of 1989
- Issued Date: 15 Aug 1989
- Effective Date: 01 Mar 1989
- Official Gazette: No. 203
- Sector: Economy and Business
- Status: Active
- Number of Articles: 8
- Chapters/Parts: 0
- Amendments: 1
Summary
This Federal Law allows citizens of Gulf Cooperation Council (GCC) countries to practice wholesale and retail trade in the United Arab Emirates. The law aims to facilitate economic integration and cooperation among GCC states by granting GCC nationals the same rights as UAE citizens to engage in commercial activities. This is significant for businesses, as it expands the pool of potential investors, traders, and entrepreneurs who can participate in the UAE's domestic market. (Federal Law for Allowing the Citizens of GCC Countries to Practice the Whole or Retail Trade in the Country, 1989, Art. 1) The law establishes the legal framework for GCC nationals, both individuals and companies, to operate retail and wholesale businesses in the UAE. It removes barriers that previously restricted GCC citizens' access to the UAE's commercial sector, promoting greater economic integration within the GCC region. This is expected to boost trade, investment, and entrepreneurship across the Gulf. (Federal Law for Allowing the Citizens of GCC Countries to Practice the Whole or Retail Trade in the Country, 1989, Art. 1-4)
What is the scope and purpose of this law?
The scope of this law is to allow citizens of Gulf Cooperation Council (GCC) countries, whether natural or juridical persons, to practice retail and wholesale trade in the United Arab Emirates. The purpose is to facilitate economic integration and cooperation among GCC states by granting GCC nationals the same rights as UAE citizens to engage in commercial activities within the UAE. (Federal Law for Allowing the Citizens of GCC Countries to Practice the Whole or Retail Trade in the Country, 1989, Art. 1)
What are the key definitions under this law?
The law does not provide any specific definitions. It uses the terms "GCC nationals" and "retail and wholesale trade" without further clarification. (Federal Law for Allowing the Citizens of GCC Countries to Practice the Whole or Retail Trade in the Country, 1989)
What are the main obligations and requirements?
The main obligation under this law is that GCC nationals, whether natural or juridical persons, shall be permitted to practice retail and wholesale trade in the UAE. The law states that the rules and controls for this shall be issued by a Cabinet resolution. (Federal Law for Allowing the Citizens of GCC Countries to Practice the Whole or Retail Trade in the Country, 1989, Art. 1)
What licensing, registration, or approval requirements exist?
The law does not specify any licensing, registration, or approval requirements for GCC nationals to practice retail or wholesale trade in the UAE. It states that the rules and controls for this shall be issued by a Cabinet resolution, but does not provide further details. (Federal Law for Allowing the Citizens of GCC Countries to Practice the Whole or Retail Trade in the Country, 1989, Art. 1)
What rights and protections does this law provide?
The law grants GCC nationals the right to practice retail and wholesale trade in the UAE, on par with UAE citizens. It removes previous restrictions that may have limited GCC citizens' access to the UAE's commercial sector. (Federal Law for Allowing the Citizens of GCC Countries to Practice the Whole or Retail Trade in the Country, 1989, Art. 1)
Which authorities or bodies are responsible for enforcement?
The law does not specify any authorities or bodies responsible for enforcement. It states that the rules and controls for GCC nationals practicing retail and wholesale trade shall be issued by a Cabinet resolution, but does not provide details on the role of any government entities in implementing or overseeing the law. (Federal Law for Allowing the Citizens of GCC Countries to Practice the Whole or Retail Trade in the Country, 1989, Art. 1)
What are the penalties for non-compliance?
The law does not mention any penalties for non-compliance. (Federal Law for Allowing the Citizens of GCC Countries to Practice the Whole or Retail Trade in the Country, 1989)
What fees, charges, or financial provisions are specified?
The law does not specify any fees, charges, or financial provisions related to GCC nationals practicing retail or wholesale trade in the UAE. (Federal Law for Allowing the Citizens of GCC Countries to Practice the Whole or Retail Trade in the Country, 1989)
What exemptions or exceptions apply?
The law does not provide any exemptions or exceptions. It applies broadly to all GCC nationals, whether natural or juridical persons, who wish to practice retail or wholesale trade in the UAE. (Federal Law for Allowing the Citizens of GCC Countries to Practice the Whole or Retail Trade in the Country, 1989, Art. 1)
How are disputes resolved under this law?
The law does not specify any dispute resolution mechanisms or procedures. (Federal Law for Allowing the Citizens of GCC Countries to Practice the Whole or Retail Trade in the Country, 1989)
What are the key deadlines and time limits?
The law sets two effective dates: 1 March 1987 for retail trade, and 1 March 1990 for wholesale trade. (Federal Law for Allowing the Citizens of GCC Countries to Practice the Whole or Retail Trade in the Country, 1989, Art. 4)
How does this law interact with other UAE legislation?
The law references several other UAE federal laws, including: - Federal Law No. (1) of 1972 concerning the jurisdictions of ministries and the powers of ministers - Federal Law No. (5) of 1975 concerning the commercial registry - Federal Law No. (2) of 1984 concerning the operation by GCC nationals in the economic activities in the State - Federal Law No. (8) of 1984 concerning commercial companies - Federal Decree by Law No. (1) of 1984 amending some provisions of Federal Law No. (8) of 1984 concerning commercial companies - Federal Decree No. (47) of 1982 ratifying the Unified Economic Agreement of the GCC states The law also states that it repeals Articles 2 and 3, which were previously part of this law. (Federal Law for Allowing the Citizens of GCC Countries to Practice the Whole or Retail Trade in the Country, 1989, Preamble, Art. 2-3)
When did this law come into effect?
This law came into effect on 1 March 1989, as stated in Article 4. The law specifies that it applies to retail trade from 1 March 1987 and to wholesale trade from 1 March 1990. (Federal Law for Allowing the Citizens of GCC Countries to Practice the Whole or Retail Trade in the Country, 1989, Art. 4)
Source Documents
This article analyses Federal Law for Allowing the Citizens of GCC Countries to Practice the Whole or Retail Trade in the Country for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.