In the GCC region, the UAE is the second-largest automotive market after Saudi Arabia. It comprises of millions of cars, trucks, buses, vans, lorries – i.e. any motorized vehicle, including motor cycles powered by an internal engine. This could be a school bus taking children; a cross-border cargo truck taking goods, a privately hired car taking a tourist from the airport or a fleet of food/courier delivery bikes.
The UAE is heavily dependent upon imports for local sale and re-export. From the spare parts, accessories, including the manpower almost everything is brought in from overseas. Besides the physical components, there’s a whole layer from service, F&I (finance and insurance), refurbishing, customization, repairs, trading, safety and maintenance must be factored from a legal perspective.
However, this major sector is undergoing rapid changes. From VAT, new technologies such as electric and driverless cars, online car marketplaces, competition, new safety and environment laws, changing traffic rules, categorization, tighter insurance regulation, car sharing, etc will impact the automotive industry. It’s essential for both local and overseas automotive companies to understand and prepare for possible legal implications.
Over the past 15 years, we have built experience, across the automotive sector. Drawing from our various practices such as IP, commercial law, employment, trading, litigation and arbitration, Al Gharib Law Firm has worked with auto manufacturers, dealers, distributors, second hand sellers, auto workshops and service centers. We have helped our clients arrive at the best possible outcome that ensures their business and that of customers has a smooth journey.
Our Automobile practice related legal services, include, but are not limited to:
- Legal advice on product safety, service, after-sales, warranty
- Advisory on product safety, recall, liability and insurance related cases
- Import/export, trading and re-export issues under local customs laws
- IP protection/anti-piracy support related to counterfeit or fake parts, accessories
- Appointment/termination of distributors, agents and resellers
- Setup and structuring of companies in mainland (onshore) or offshore in freezones
- Drafting contracts related to buy/sell/ distributorship, service, purchase, hire, lease
- Working with regulatory authorities, Ministries and RTA for approvals and compliance
- Drafting agreements, contracts related to lease, hire, purchase
- Import/Export regulation related to new vehicles, spares, accessories
- Provide forum for dispute resolution (vs. court litigation)
- Employment related aspects related to hiring, redundancies related to fleet