Federal Law No. 17
Issued on 2004/11/1
Corresponding to 8 Ramadan 1425 H.
Concerning Combating Commercial Concealment

We, Zayed Bin Sultan Al Nahyan, President of the United Arab Emirates State,
Pursuant to the perusal of the Constitution; and
Federal Law no. 1 of 1972, regarding the Jurisdiction of Ministries and the Powers of the Ministers and the amending laws thereof; and
Federal Law no. 5 of 1975 regarding the Commercial Register; and
Federal Law no. 4 of 1979 regarding Quashing Adulteration and Fraud in Commercial Transactions; and
Federal Law no. 18 of 1981 regarding regulation of Commercial Agencies, and the amending laws thereof; and
Federal Law no. 8 of 1984 regarding Commercial Companies, and the amending laws thereof; and
Federal Law no. 9 of 1984 regarding Insurance Companies and Agents, and the amending laws thereof; and
The Penal Code issued by Federal Law no. 3 of 1987; and
The Penal Procedural Code issued by Federal Law no. 35 of 1992; and
The Commercial Transactions Law issued by Federal Law no. 18 of 1993, and
Federal Law no. 18 of 1995 regarding Simple Crafts, and
Acting upon the proposal of the Minister of Economy and Commerce, and the approval of both the Council of Ministers and the Federal National Council, and the ratification of the Federal Supreme Council,
Have promulgated the following Law:
Article 1
In applying the provisions of this Law, the following terms and words shall have the meanings stated opposite to each unless the context indicates otherwise:
The State: The United Arab Emirates State.
The Ministry: The Ministry of Economy and Commerce.
The Minister: The Minister of Economy and Commerce.
The competent authority: the Local authority in the concerned Emirate.
The committee: The committee of combating commercial stimulation.
Concealment: Enables the foreigner – whether physical or juristic person – from carrying out any economic or professional activity not allowed to be carried out according to the laws and regulations in effect in the State whether to his account or in participation with third parties, or enables him to evade the liabilities resting upon him.
The Concealer: Every physical or juristic person who enables the foreigner –whether physical or juristic person – to carry out any economic or professional activity prohibited to be performed by him within the State.
The concealed: Any foreigner – whether physical or juristic person – carries out, with the aid of a concealer, any economic or professional activity prohibited to be carried out by him in the State with the aid of the concealer.
Article 2
Concealment of any foreigner is prohibited– whether physical or juristic person – and whether it is carried out by using the name, the license, the commercial register of the concealer or by any other means in the light of the definition of concealment mentioned in Article 1 of the present Law.
Article 3
Without prejudice to any severer penalty specified by any other law, the concealer shall be sentenced to a fine not in excess of one hundred thousand Dirham. The fine shall be repetitive by the number of the activities concealed. In case of recurrence, the penalty shall be imprisonment of the concealer for a period not exceeding two years and by a fine of one hundred thousand Dirhams.
The concealed person shall be liable to the same sentence together with his deportation from the State after execution of the penalty and payment of the liabilities due by him.
Article 4
The condemnation according to the provisions of the preceding Article shall result in striking off the entry of the concealed from the commercial register regarding the activity concealed, and cancellation of the license granted to him, in addition to depriving him from carrying out this activity for a period that may range between two years and five years as of the date of the judgment.
The abstract of the judgment shall be published at the expense of the condemned person in two daily newspapers issuing in the State provided that one is in Arabic.
Article 5
The Official assigned to control the implementation of the provisions of this Law and its implementing regulations designated by a decision given by the Minister of Justice and Islamic Affairs and Endowments in agreement with the Minister and the competent authority shall have the capacity of judicial officers to detect any violation to the provisions of this Law, and its implementing regulations and decisions, they shall be empowered to review all the records and documents of the relevant economic and professional activities.
Article 6
The Minister shall issue the regulations and decisions required for the implementation of the present Law in coordination with the competent authorities.
Article 7
This Law shall be published in the Official Gazette and shall come into force three years subsequent to its publication.
Promulgated by Us at the Presidential
Palace in Abu Dhabi
On 8 Ramadan 1425 H.
Corresponding to 2004/11/1
Zayed Bin Sultan Al Nahyan
President of the United Arab Emirates State
This Federal Law has been published in the Official Gazette, issue no. 422, page 11.

TempFile000.gif