Baker McKenzie has advised two multinational clients across the pharmaceutical and infrastructure sectors on the successful deregistration of commercial agency relationships and subsequent settlements, supporting strategic transitions in the clients' operating models in the UAE.
These mandates reflect a broader trend of international businesses reassessing their commercial agency arrangements in the UAE, requiring careful legal structuring and alignment with evolving business strategies.
In one matter, the Firm advised a multinational pharmaceutical company on the termination of a long-standing commercial agency relationship and its transition to a non-registered exclusive distribution model. This involved structuring and negotiating a comprehensive settlement alongside new distribution arrangements to support the client’s future growth strategy in the UAE.
In a separate mandate, Baker McKenzie advised a multinational engineering company on the termination of its commercial agency relationship in the UAE, guiding the client through the legal and strategic considerations and successfully negotiating the settlement agreement.
The Firm is advising several other clients on similar issues, including on related transactional aspects where multinationals are either fully or partially acquiring their distributors/agents, creating joint ventures with them, or changing the scope of such distributors.
Commenting on the matters, Laya Aoun-Hani, Partner at Baker McKenzie, said:
“These mandates highlight the importance of aligning legal strategy with broader business objectives when navigating commercial agency relationships in the UAE. In both cases, we worked closely with our clients to assess their legal position, manage stakeholder considerations and negotiate solutions that support their long-term commercial goals.”
Baker McKenzie provided end-to-end legal support across both matters, including advising on the clients’ legal positions and business strategies, and drafting and negotiating the relevant settlement and distribution agreements. The Baker McKenzie team included Partners Laya Aoun-Hani and Hani Naja.
Both matters were handled over the course of one year, between May 2025 and May 2026.