On July 13, 2026 the UAE Cabinet has issued Cabinet Resolution No. (107) of 2026, approving the Executive Regulations of Federal Decree-Law No. (42) of 2023 on Combatting Commercial Fraud. The Regulations establish a comprehensive framework for the detection, investigation, recall, seizure, disposal, and settlement of commercial fraud violations, while enhancing coordination between federal and local authorities to strengthen consumer protection and market integrity.
The Resolution repeals the previous Executive Regulations issued under Cabinet Resolution No. (11) of 2020 and introduces more detailed procedures reflecting current enforcement priorities.
Key Highlights
1. Enhanced Coordination Between Authorities
The Regulations clarify the respective roles of the Ministry of Economy and Tourism and the competent local authorities. While local authorities remain primarily responsible for recalls and enforcement within their jurisdictions, the Ministry may intervene where:
- the competent authority fails to act within prescribed timeframes;
- the authority declines to exercise its powers;
- fraudulent goods are distributed across multiple Emirates; or
- the case involves significant risks to public health, animal health, or the environment.
This framework ensures a coordinated national response to large-scale or high-risk commercial fraud cases.
2. Comprehensive Inspection and Investigation Powers
Judicial Enforcement Officers are granted extensive powers to investigate suspected commercial fraud, including the authority to:
- inspect commercial premises, warehouses, factories, and other non-residential locations;
- inspect electronic systems and digital records where necessary;
- collect product samples for laboratory examination;
- seize and impound suspected goods pending investigation; and
- refer samples to accredited laboratories inside or outside the UAE.
Strict timelines are introduced for inspections, laboratory testing, and notification of results to ensure procedural efficiency.
3. Mandatory Product Recall Procedures
Where fraudulent, spoiled, or counterfeit goods are identified, suppliers are required to:
- immediately cease the sale or display of the affected products;
- initiate a recall within 24 hours;
- notify distributors and retailers;
- retrieve products from the market; and
- provide evidence demonstrating compliance with the recall process.
Failure to conduct the recall empowers the Ministry or competent authority to carry out the recall directly at the supplier’s expense, without prejudice to administrative penalties.
4. Public Notification Requirements
The Regulations impose detailed obligations regarding public announcements of recalled products.
Recall notices must generally:
- be published in Arabic and English;
- identify the product, trademark, model, and country of origin;
- provide refund procedures;
- identify collection locations;
- include supplier contact details; and
- be published through approved media channels within prescribed deadlines.
The authorities may require additional announcements depending on the seriousness of the risk or the geographical spread of the affected goods.
5. Disposal, Recycling and Utilisation of Goods
The Regulations establish detailed procedures governing the treatment of fraudulent goods after seizure.
Depending on the circumstances, goods may be:
- destroyed;
- recycled;
- utilised for approved purposes; or
- re-exported to their country of origin.
Any utilisation or recycling requires approval by the Higher Committee or the competent court and must ensure:
- removal of counterfeit intellectual property;
- protection of public health and the environment; and
- prevention of any further circulation of fraudulent goods.
6. Re-export of Goods
Where destruction has not yet been ordered, suppliers may be required to re-export recalled goods to their country of origin within 30 days at their own expense.
Where suppliers fail to do so, the authorities may undertake re-export or destruction while recovering all associated costs from the supplier.
7. Detailed Destruction Procedures
The Regulations prescribe comprehensive controls governing destruction of fraudulent goods, including:
- obtaining a court order or decision of the Higher Committee;
- ensuring goods are permanently rendered unusable;
- preventing environmental harm during destruction;
- maintaining official destruction records; and
- recovering destruction costs from the supplier.
Where necessary, destruction may also be carried out outside the UAE.
8. Administrative Enforcement
The Resolution reinforces administrative enforcement by introducing penalties for persons who knowingly deal with fraudulent or harmful goods, including cases involving:
- medicines;
- agricultural products;
- organic food products;
- unsafe consumer goods;
- misleading advertising; and
- fraudulent marketing practices.
9. Settlement Mechanism
A structured administrative settlement process is introduced, allowing violators to request settlement before litigation, subject to several conditions, including:
- submission within prescribed deadlines;
- absence of intentional misconduct;
- rectification of the violation;
- payment of the agreed settlement amount; and
- no previous penalties under the Decree-Law during the preceding twelve months.
The Regulations also establish procedures for appeals where settlement applications are rejected.
Practical Impact on Businesses
Businesses operating in the UAE should review their internal compliance programmes to ensure they are capable of:
- identifying potentially fraudulent or defective products;
- implementing rapid recall procedures;
- maintaining accurate product traceability records;
- responding promptly to inspection requests;
- coordinating effectively with regulators; and
- managing product disposal in accordance with the new regulatory requirements.
Manufacturers, importers, distributors, retailers and logistics providers should also revisit their contractual arrangements to allocate responsibility for recalls, testing costs, destruction expenses and regulatory compliance.
Concluding remarks
Cabinet Resolution No. (107) of 2026 significantly strengthens the UAE’s commercial fraud enforcement regime by introducing detailed operational procedures for inspections, recalls, investigations, disposal of fraudulent goods and administrative settlements.
The Regulations reinforce the UAE’s commitment to consumer protection, fair competition and market integrity, while providing authorities with expanded enforcement powers and establishing clearer compliance obligations for businesses throughout the supply chain.
The Resolution will enter into force 30 days after its publication in the Official Gazette, which means on August 12, 2026.
For more information or inquiries, please contact our experienced team at dubai@unitedtm.com.
