« Back to Glossary IndexRestrictive Covenant
A restrictive covenant is a contractual clause that limits a party’s actions to protect business interests, such as trade secrets, client relationships, and market competition. In the UAE, restrictive covenants are commonly found in employment contracts, franchise agreements, and commercial leases. Non-compete, non-solicitation, and confidentiality clauses must be reasonable in scope, duration, and geographic area to be enforceable under UAE law. Courts may invalidate overly broad restrictions, ensuring they do not unfairly restrict business or employment opportunities.
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