Up until recently, in the UAE, an agency agreement had to be registered at the Commercial Agencies Register at the Ministry of Commerce and Industry to be enforceable. This had created a lot of difficulties in the past for foreign companies in terminating agreements where the local agent was not performing under the agreement, as the commercial agency law provided substantial protection to the commercial agents, especially in the context of termination. For example, if the principal terminated an unlimited term commercial agency without cause, the principal was obliged to compensate the agent.