Franchise Registration Requirements Across the Middle East: UAE, Qatar, and Oman

Franchise Registration Requirements Across the Middle East: UAE, Qatar, and Oman

As global franchisors consider expansion into the Middle East, understanding the legal frameworks governing franchise registration and foreign ownership is crucial. This overview provides a comparative look at the United Arab Emirates (UAE), Qatar, and Oman. Please note that regulations can change, and it's essential to consult official government sources or legal professionals for the most current information.

United Arab Emirates (UAE)

Franchise Registration

  • The UAE does not have specific franchise registration requirements. However, if a franchise agreement is structured as a commercial agency, it must be registered with the Ministry of Economy. This process involves submitting a notarized and legalized agreement, translated into Arabic, especially if executed outside the UAE .

Foreign Ownership

  • As of recent reforms, the UAE allows 100% foreign ownership of onshore companies in many sectors, eliminating the previous requirement for a local Emirati partner. However, certain strategic sectors may still have restrictions. It's advisable to verify the specific sector regulations through official channels .

Qatar

Franchise Registration

  • Qatar does not have a dedicated franchise law. Franchise agreements are typically governed by general contract law. If a franchise operates as a commercial agency, it must be registered with the Ministry of Commerce and Industry (MoCI). It's important to consult with legal experts to understand the implications of such arrangements.

Foreign Ownership

  • Qatar permits 100% foreign ownership in many sectors, following the enactment of Law No. 1 of 2019. However, certain sectors like banking, insurance, and commercial agencies may have restrictions. Foreign investors should consult the MoCI or legal advisors to determine eligibility for full ownership in their intended sector.

Oman

Franchise Registration

  • Oman does not have specific franchise legislation. Franchise agreements are subject to general commercial and contract laws. If a franchise is structured as a commercial agency, it must comply with the relevant agency laws. Legal consultation is recommended to navigate these requirements .

Foreign Ownership

  • Oman's Foreign Capital Investment Law allows 100% foreign ownership in most sectors, removing the previous requirement for a local partner. However, some sectors may still have restrictions. Investors should verify the current regulations with the Ministry of Commerce, Industry, and Investment Promotion (MOCIIP) or legal experts.

Conclusion

While the UAE, Qatar, and Oman offer promising opportunities for franchise expansion, each country has its own legal nuances. It's imperative for franchisors and investors to conduct thorough due diligence and consult with legal professionals to ensure compliance with local laws and regulations. Always refer to official government sources or authorized legal advisors for the most accurate and up-to-date information.