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    Anti-counterfeiting in the United Arab Emirates: The Current

    July 18, 2025 5 min read
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    Introduction

    Strategically located at the crossroads of Europe, Asia, and Africa, the United Arab Emirates (UAE) plays a pivotal role in global trade, serving as one of the world’s biggest logistics and re-export centers. Dubai’s position as an international shipping and air transit hub makes it a key point for goods transported between East, West, and Africa. This accessibility has made the UAE, including ports like Jebel Ali, a hub for counterfeit goods. Counterfeit products may enter the country for domestic sale or transit to other regions, sometimes concealed within legal shipments.

    Although the UAE has introduced legislative and enforcement measures to address counterfeiting, the large volume of goods moving through its borders continues to pose challenges to the protection of intellectual property rights.

    Scope of Counterfeiting

    Counterfeiting in the UAE affects a broad range of products, including luxury goods (handbags, watches, perfumes, apparel, and electronics), automotive parts, pharmaceuticals, toiletries, and cigarettes. Counterfeit items are typically sold in informal or low-cost markets, particularly in Dubai districts like Deira and Al Karama.

    UAE authorities have ramped up enforcement in recent years, resulting in increased seizures and raids. For example, over the five years 2019–2024, Dubai Police’s Economic Crimes Department reports confiscating approximately AED 8.7 billion (~USD 2.3 billion) worth of counterfeit goods.

    UAE Legal Framework

    The UAE is a civil law country, comprising seven emirates: Abu Dhabi, Dubai, Sharjah, Ajman, Ras Al Khaimah, Fujairah, and Umm Al Quwain. Each emirate can operate its own court system or join the federal judiciary. IP disputes can be heard by federal or local courts, depending on the case.

    Intellectual property rights are protected by federal law, but enforcement occurs at the local level. Key federal legislation includes:

    • Federal Trademarks Law (Federal Decree Law No. 36 of 2021 on Trademarks): Governs trademarks and infringement, expanding protection and increasing penalties for counterfeiting.
    • Federal Copyright Law (Federal Decree-Law No. 38 of 2021): Criminalizes unauthorized copying, distribution, or commercial exploitation, with imprisonment and fines ranging from AED 100,000 to AED 700,000.
    • Anti-Commercial Fraud Law (Federal Decree-Law No. 42 of 2023): Imposes strict penalties on suppliers of counterfeit goods, including up to 2 years’ imprisonment and fines up to AED 1 million.
    • Consumer Protection Law (Federal Law No. 15 of 2020): Prohibits misleading descriptions and unsafe or counterfeit products; fines up to AED 2 million and closure of businesses are possible.
    • GCC Unified Customs Law: Provides the basis for border enforcement, including detention of suspected counterfeit goods in transit.

    The UAE is also a party to all major IP treaties strengthening its anti-counterfeiting regime.

    UAE Anti-Counterfeiting Enforcement Mechanisms

    4.1. Enforcement Authorities

    • Customs Departments: Inspect imports/exports at ports, airports, and free zones; can seize counterfeit shipments. Dubai Customs has a dedicated IP Rights Department handling training, recordal, and seizures.
    • Police and Criminal Investigation Departments (CID): Conduct criminal investigations, raids, and undercover operations against counterfeiters.
    • Public Prosecution: Oversees criminal cases referred by police, ensuring judicial oversight.
    • Economic Development Departments (EDDs): Carry out administrative enforcement against counterfeit goods in local markets.
    • Federal Ministry of Economy and Tourism (MoET): Leads on IP policy, administers trademark registry, and coordinates federal-local enforcement.

    4.2. Border Enforcement Procedures

    • Customs Inspections: Use risk profiling, intelligence, and random checks; suspicious shipments are detained for examination.
    • Notification of Rights Holder: Customs notifies trademark owners to confirm counterfeit status and initiate legal action.
    • Seizure and Evidence Gathering: Counterfeit shipments are seized, reports prepared, and samples retained for forensic verification.
    • Follow-up Actions: Customs can destroy confirmed counterfeit goods and refer criminal cases to police or public prosecution.

    4.3. Customs Recordation

    The UAE allows trademark owners to record registered trademarks with local customs databases. Currently, 5 of 7 emirates (Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah) have recordation programs. Only goods-related trademarks can be recorded. Required documents include the UAE trademark certificate, power of attorney, and recordation fee.

    4.4. Administrative Enforcement

    Rights holders can file administrative complaints with local authorities to confiscate counterfeit goods. Enforcement officials may raid premises without court formalities. Penalties include fines, forfeiture, and potential closure for repeat offenders.

    4.5. Civil Enforcement and Remedies

    Trademark owners can file civil lawsuits under Article 48 of the Trademark Law to seek damages. Remedies include:

    • Permanent injunctions to stop continued infringement.
    • Monetary damages for lost profits, brand harm, or investigation costs.
    • Ancillary orders: publication of judgment, cancellation of conflicting trade names, or closure of defendant’s business.
    • Costs: losing party may pay court fees and partial legal costs.

    4.6. Preliminary/Interim Measures

    • Judicial Precautionary Measures (e.g., Anton Piller orders, asset freezing, travel bans, interim injunctions)
    • Customs Suspensions to temporarily hold goods during enforcement
    • Administrative Closure Orders for stores selling counterfeits

    4.7. Criminal Enforcement and Remedies

    Under UAE law, counterfeiting is a criminal offense. Key penalties include:

    • Imprisonment and fines between AED 50,000 – 1,000,000 depending on the offense
    • Confiscation and destruction of counterfeit goods, including packaging and machinery
    • Publication of judgment in newspapers or Official Gazette
    • Business closure orders (up to 6 months)
    • Additional sanctions under the Commercial Fraud Law (up to 2 years imprisonment, fines up to AED 1 million)

    Conclusion

    The UAE has developed a comprehensive legal and institutional framework to address counterfeiting, covering border, administrative, civil, and criminal enforcement. Effective anti-counterfeiting strategies require a multi-prong approach, combining border controls, administrative actions, and judicial proceedings. Criminal cases disrupt large-scale operations, while civil litigation offers compensation and injunctive relief. Online enforcement is increasingly important, requiring active monitoring and takedown procedures.

    Success in enforcement relies heavily on proactive rights holder engagement and coordination with local authorities.

    References

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