Individuals and companies conducting business in the Middle East, and in particular the United Arab Emirates (“U.A.E”), often face cultural and legal challenges while doing business. One such challenge is the interplay between State of Israel (“Israel”) boycott laws applicable in the U.A.E. and related legislation in the United States.
Arab League Boycott and U.A.E. Law
Following the establishment of Israel, the Arab League, an umbrella organization comprising of 23 Middle Eastern and African countries and entities formalized a boycott against Israel. Following the adoption of this boycott, the U.A.E., among other Arab League nations, enacted specific legislation to implement the boycott.
In 1972, the U.A.E. enacted Federal Law No. 15 (“U.A.E. Boycott Law”) which prohibits dealings with individuals of Israeli nationality and the trade of Israeli goods. Specifically, the U.A.E. Boycott Law prohibits “a natural person or legal entity [domiciled in the U.A.E.] to enter, either personally or by proxy, into an agreement with concerns or individuals domiciled in Israel or holding Israeli nationality...”. Furthermore, pursuant to the U.A.E. Boycott Law, it is prohibited to import, exchange, process or trade in goods, commodities or products of Israeli origin.
While the boycott may be sporadically applied and inconsistently enforced in practice, it is nonetheless entrenched in current U.A.E. legislation.
Please see full publication below for more information.
