Cross-border trade generates disputes along the whole chain – over the goods themselves, the distribution and agency arrangements that move them, the trade-finance instruments that pay for them, and the debts left when something goes wrong. In the UAE these disputes are shaped by local law and by a choice of forums: the onshore civil-law courts, the common-law courts of the DIFC and ADGM, and arbitration.
ATB Legal advises suppliers, distributors, agents, manufacturers and their counterparties on trade disputes in the UAE – bringing and defending claims, and, just as often, structuring the underlying contracts so disputes are less likely and better-positioned if they arise. The aim is commercial resolution; litigation or arbitration is the tool, not the goal.
1. Disputes Across the Trade Chain
Trade disputes rarely fall into one box. A single failed transaction can involve the supply contract, the distribution or agency arrangement, the letter of credit or guarantee that financed it, the unpaid debt at the end – and, where goods are stopped at the border, a customs hold of its own. Each has its own law and its own leverage, and the right forum for one may not be the right forum for another.
ATB Legal takes the whole picture into account – the contracts, the instruments, the parties and the assets – and advises on the combination of claims and the forum that best serves the commercial outcome, rather than litigating one strand in isolation.
2. Supply & Sale-of-Goods Disputes
Supply disputes turn on the familiar pressure points: non-conforming or defective goods, short or late delivery, rejection and revocation, price and payment, termination, and force majeure. The Incoterms agreed, the governing law and the forum clause usually decide how the dispute runs, and the contract documents are where the case is won or lost.
ATB Legal advises suppliers and buyers on supply and sale-of-goods disputes – assessing the merits against the contract, pursuing or resisting rejection and termination, and recovering or defending the price – in negotiation, court or arbitration as the matter requires.
3. Distribution & Commercial Agency
Distribution and agency in the UAE are shaped by the Commercial Agencies Law – Federal Decree-Law No. 3 of 2022, which replaced the long-standing 1981 law and came into force in June 2023. Registered commercial agencies are recorded in the Commercial Agencies Register at the Ministry of Economy, registration is restricted to UAE nationals and wholly UAE-owned companies, and registered agents have historically enjoyed strong statutory protection – including exclusivity and, under the old law, great difficulty for a principal seeking to terminate or replace them.
The 2022 law rebalanced this relationship: it permits early termination and non-renewal of agency agreements on conditions, including notice and potential compensation for harm, and provides a dedicated route for resolving agency disputes. The change matters because the decision to register, the terms agreed, and the way a relationship is ended now carry different risks than under the old regime. ATB Legal advises principals, agents and distributors on structuring, registering, operating and ending these relationships, and on the disputes that arise from them.
4. Trade-Finance Disputes
Trade finance brings its own disputes. Letters of credit (governed by the UCP 600 rules) turn on documentary compliance – whether the documents presented conform – and on the narrow fraud exception. Demand and bank guarantees (often under URDG 758) raise questions of wrongful or abusive calls. These disputes sit between the buyer, the seller and the banks, and they move quickly, because money is about to change hands.
ATB Legal advises beneficiaries, applicants and counterparties on letter-of-credit and guarantee disputes – documentary discrepancies, wrongful calls, applications to restrain payment where fraud is alleged, and the underlying contract claims that sit behind the instrument.
5. Non-Payment & Debt Recovery
Much trade litigation is, at bottom, about getting paid. The UAE offers routes to recover trade debts – court action and, where the debt is supported by the right instruments such as a dishonoured cheque, more expedited routes – and securing the counterparty’s assets early through attachment can be decisive. Unpaid invoices and dishonoured payments are the common triggers.
ATB Legal acts on trade-debt recovery – assessing the route, securing assets where possible, and pursuing the claim through the appropriate forum – and defends claims that are disputed on quality, delivery or set-off grounds.
6. Forum & Enforcement
Where a dispute is heard matters as much as its merits. The onshore UAE courts apply UAE law in Arabic; the DIFC and ADGM courts apply a common-law system in English and are available where the parties or the matter connect to those centres; and arbitration – for example under DIAC – is widely used for cross-border trade. Each differs in procedure, language, cost and enforcement.
Enforcement is the end that justifies the means: a judgment or award is only as good as its enforceability against the assets. ATB Legal advises on the forum choice at the contracting stage and on enforcement of judgments and awards – including the cross-border enforcement that India–UAE trade so often requires, coordinated with our India disputes team.
7. Managing the Risk Upfront
Most trade disputes are shaped long before they arise – in the contract. The governing law and forum, the Incoterms, the payment and security terms, the treatment of exclusivity and termination, and the decision whether to register an agency all determine how a dispute will run. Getting these right is far cheaper than litigating them later.
ATB Legal reviews and drafts the supply, distribution, agency and security arrangements with the dispute in mind, so a client is well-positioned if a disagreement turns into a claim.
8. Our Process
A typical engagement runs in four steps: an assessment of the dispute or the risk – the contract, the instrument, the forum and the merits; a strategy, whether negotiated resolution, court action, arbitration or recovery; conduct of the matter through the chosen forum; and enforcement against assets, including across the India–UAE corridor. Where a dispute is better prevented than fought, we start at the contract. Remote handling is available throughout.
Frequently asked questions
What kinds of trade disputes does ATB Legal handle in the UAE?
Disputes across the trade chain: supply and sale-of-goods claims, distribution and commercial-agency disputes, trade-finance disputes over letters of credit and guarantees, and non-payment and debt recovery – brought or defended in the UAE courts, the DIFC or ADGM courts, or arbitration.
Can a UAE commercial agency be terminated under the new agency law?
Under the Commercial Agencies Law (Federal Decree-Law No. 3 of 2022, in force June 2023), early termination and non-renewal are permitted on conditions, including notice and potential compensation for harm – a significant change from the old 1981 regime, under which terminating a registered agent was very difficult. We advise on the conditions and the risks.
What is a registered commercial agency in the UAE?
A commercial agency recorded in the Commercial Agencies Register attracts the statutory protections of the agency law, and registration is restricted to UAE nationals and wholly UAE-owned companies. Whether to register, and on what terms, is a strategic decision with real consequences – we advise principals and agents on it.
What is a letter-of-credit dispute?
A dispute over a documentary credit – typically whether the documents presented comply with the credit’s terms under the UCP 600 rules, or whether the narrow fraud exception applies. We advise beneficiaries, applicants and counterparties on documentary discrepancies and on restraining payment where fraud is alleged.
Can a wrongful call on a demand guarantee be challenged?
Demand guarantees are designed to pay on demand, but a call can be wrongful or abusive, and in fraud cases a court may restrain payment. These disputes move quickly. We act for beneficiaries and applicants on calls, resistance to calls, and the underlying contract claim.
Which forum hears a trade dispute in the UAE?
Depending on the contract and the connection to the matter: the onshore UAE courts (UAE law, in Arabic), the DIFC or ADGM courts (a common-law system, in English), or arbitration such as DIAC. Each differs in procedure, language, cost and enforcement, and the choice is usually best made in the contract.
Should a UAE trade dispute go to court or arbitration?
It depends on the parties, the assets and the need for enforceability – arbitration is widely used for cross-border trade and can be easier to enforce internationally, while the courts may suit certain claims. We advise on the choice at the drafting stage and conduct the matter in either forum.
How is a trade debt recovered in the UAE?
Through the appropriate route – court action, and more expedited routes where the debt is supported by the right instruments such as a dishonoured cheque – often with early steps to secure assets through attachment. We assess the route, pursue recovery, and defend disputed claims.
Can a UAE judgment or arbitral award be enforced against assets?
Often yes – arbitral awards in particular benefit from international enforcement frameworks, and judgments may be enforceable depending on the circumstances. Enforceability against UAE assets is the real test, and we advise on it, including for India–UAE matters.
Can you handle a trade dispute that spans the UAE and India?
Yes – with offices on both sides, we handle the UAE dispute and coordinate the India side, including cross-border enforcement, in one relationship, which corridor trade disputes frequently require.
⭐ Representative Experience (anonymised)
A principal seeking to restructure its UAE distribution was advised on terminating a registered commercial agency under the 2022 law, including the notice and compensation considerations, and on the replacement arrangements.
A beneficiary facing a disputed call on a demand guarantee was advised on the call, the documents, and the prospects of restraining payment pending the underlying contract dispute.
A supplier owed payment across the India–UAE corridor was advised on the recovery route in the UAE, the asset-securing steps available, and coordination with enforcement in India.
🏆 How we work
- Whole-chain coverage – supply, distribution and agency, trade-finance and debt-recovery disputes, brought or defended.
- Current on the agency law – the 2022 Commercial Agencies Law and what its rebalancing means for terminating, registering and structuring agencies.
- Forum-fluent – onshore UAE courts, DIFC/ADGM common-law courts and arbitration, chosen for procedure, cost and enforceability.
- Enforcement-focused – a judgment or award is only as good as its enforceability against assets, including across the corridor.
- Prevention too – contracts drafted with the dispute in mind, because that is far cheaper than litigating later.