Law No. (5) of 2025 On Commercial Protection and Control on Economic Establishments We, Saud Bin Saqr Bin Mohammed Al Qasimi Ras Al Khaimah Ruler After perusal of Constitution of United Arab Emirates; And Federal Law No. (15) of 2020 on Consumer Protection, as amended; And Federal Decree-Law No. (19) of 2020 on Custody; And Federal Decree-Law No. (31) of 2021 on Promulgating Crime & Penal Law, as amended; And Federal Decree-Law No. (32) of 2021 on Commercial Companies; And Federal Decree-Law No. (37) of 2021, on Commercial Register; And Federal Decree-Law No. (46) of 2021 on Electronic Transactions and Thiqa Services, as amended; And Federal Decree-Law No. (37) of 2022 on Family Companies; And Federal Decree-Law No. (42) of 2022 on Promulgating Civil Procedures Law, as amended; And Federal Decree-Law No. (50) of 2022 on Promulgating Commercial Transactions Law; And Law No. (11) of 2008 on Advertisements Control; And Law No. (7) of 2012 on Establishing Executive Council for Ras Al Khaimah Emirate, as amended; And Law No. (5) of 2016 on Promotional Campaigns and Special Offers for Commercial Advertisement Purposes; And Law No. (6) of 2016 on Selling at Discounted Prices (Sales) and Clearance Sales; And Law No. (7) of 2016 on Commercial Control and Protection on Economic Establishments, And Law No. (8) of 2016 on Regulating Practicing Economic Activities in Ras Al Khaimah; And Law No. (10) of 2023 on Impounding, Placing and Disposing Vehicles; And Law No. (2) of 2025 on Organizing Department of Economic Development in Ras Al Khaimah; And after approval of the Executive Council; promulgated the following Law: Article (1) Definitions In applying provisions of this Law, the following words and phrases shall have the meanings indicated opposite each of them, unless the context of text requires otherwise: State: United Arab Emirates. Emirate: Ras Al Khaimah Emirate. Department: Department of Economic Development in the Emirate. Chairman: Department Chairman. Director General: Department Director General Competent Administration: Commercial Control and Protection Administration in the Department. Economic Activity: Each commercial, industrial, craft, professional, agricultural, service, electronic or other activity intended to achieve profit or provide a public service, whenever it falls within the activities under the competency of the Department, in accordance with the legislation in force in the State or Emirate. Investor: Anyone practices economic activity in the Emirate as a provider, clearance agent, service provider or trader. Consumer: Anyone who receives a good or service from an economic establishment licensed in the Emirate. Competent Committee: Customer Complaints & Grievances Committee in the Department. Establishment: Any company or corporation licensed to practice economic activity in the Emirate. Article (2) Law Objectives This Law aims at achieving the following: 1. Create an attractive economic environment that enhances the competitiveness of establishments operating in the Emirate, supports comprehensive and sustainable economic development, along with ensuring consumer rights. 2. Protect the rights of investors and consumers by establishing the principles of justice and transparency in economic transactions and ensuring that all parties adhere to sound business practices, thereby enhancing confidence in the local market. 3. Facilitate investment and improve the business environment by providing suitable conditions for establishing and expanding economic projects and supporting investments in all volumes thereof, in a way that positively reflects on economic growth and encourages entrepreneurship. 4. Limit illegal business practices by combating unlawful activities and ensure that commodities and services offered in the market comply with legal controls and standards, thereby maintaining market stability and integrity of transactions. 5. Enhance compliance with applicable legislation by instilling the liability of individuals and economic establishments to adhere to the laws in force in the State and the Emirate, ensuring that economic activities are practiced within a controlled and transparent legal framework. Article (3) Law Enforcement The provisions of this Law shall apply to all natural and legal persons who engage in an economic activity within the Emirate, whenever this activity falls under the competency of the Department in accordance with the applicable legislation in the State or the Emirate. Article (4) Competent Administration Terms of Reference Each of Control Section and Commercial Protection Section in the competent administration shall be competent, in coordination with the concerned authorities, to monitor and inspect economic activities that fall within the Department terms of reference, in order to verify compliance thereof with the conditions and controls established in the applicable legislation in the Emirate or the State. Article (5) Grant Law Officer Capacity Employees of the competent administration, nominated by resolution from the Chairman, based on candidature of the Director General, shall be empowered with capacity of law officer to enable them to inspect, control and prove acts that violate the provisions of legislation regulating the economic activities and resolutions promulgated in implementation thereof and in order to do this, they shall be entitled to enter the economic facilities and look into books, records and data thereof and make reports and take prescribed legal procedures. All local authorities and economic establishments shall provide the necessary cooperation and assistance to enable them to carry out duties thereof. Article (6) Economic Establishment Obligations Without prejudice to any other obligations prescribed by the federal or local legislation, every establishment licensed to carry out economic activity within the Emirate shall comply with the following: 1. Commit to instructions and resolutions issued by the Department. 2. Not affect consumer rights and ensure the quality of commodities and services provided thereto. 3. Adhere to conditions and controls of practicing the licensed economic activity. 4. Empower the competent employees of the Department to enter the establishment and look into books, records and data necessary to perform their control duties. 5. Fully cooperate with the Department and provide it with data, documents and information required thereby. 6. Review the complaints referred thereto from the Department and respond to the same within the specified period. 7. Eliminate the effects of violations within the period set by the Department, if the establishment does not comply. 8. Any other commitments determined by a resolution from the Chairman. Article (7) Information Confidentiality Employees of the competent administration, as well as those persons or authorities whom the Department seek assistance thereof to implement the provisions of this Law, are prohibited from disclosing any information they have come across by virtue of their positions or tasks, except in cases explicitly permitted by law. They may not use such information for purposes other than those for which it had been provided, and this commitment shall remain in effect even after the end of their service or relationship with the Department. Article (8) Violation Report Employees granted law officers’ capacity must disclose their identity and present proof of their capacity to those concerned before undertaking any inspection or monitoring works. They must prove the results of inspection or control activities in reports made using the form approved by the Department for this purpose. The General Director shall issue a decision specifying the format of the report and the mandatory details that must be included therein and he may make any amendments thereto as he deems necessary as required by nature of the work or to achieve the objectives of this Law. The violation of the form or omission of certain details shall not invalidate the report, as long as its purpose is fulfilled. Article (9) Violations and Financial Penalties Based on suggestion of the Department, the Executive Council shall issue schedule of fees and another one of prescribed violations and fines and the proceeds of these fees and fines shall devolve upon the Department's treasury. Without prejudice to any more severe penalty stipulated by other legislation, anyone who violates the provisions of this Law or resolutions issued in implementation thereof shall be punished with the fine specified in the schedule. The fine shall be doubled if the same violation had been repeated within one year from the date of committing it, provided that it does not exceed, in all cases, the amount of five hundred thousand dirhams. Article (10) The Financial Penalty for Delaying License Renewal The Department shall impose a fine of not less than one thousand dirhams and not more than one hundred thousand dirhams on any public joint-stock company, commercial agency or establishment operating within a commercial center that fails to renew its license within the specified time without an excuse accepted by the Department. The fine shall be due from the date of the license expiry date and the renewal request thereof shall not be accepted until the due fine is fully paid. Article (11) Measures Without prejudice to the fine stipulated in the schedule referred thereto in this Law, the Department, in coordination with the competent federal or local authorities, may impose on the violator — depending on the severity of the violation — one or more of the following measures. 1. Deliver warning. 2. Temporary closure of the establishment or any of its sections or suspension of one or more of its activities, for a period not exceeding two weeks and Director General may, in cases require that, extend this period for no more than two months. 3. Permanent closure of the establishment or any section thereof or suspension of one or more of its activities, in any of the following cases: a. Practice an economic activity without license. b. It is proved that the establishment is practicing an activity prohibited by law under final judgment. c. It is proved that the establishment engaged in money laundering or terrorism financing. 4. Seize non-perishable goods, at the violator's expense, for a period not exceeding thirty days from the date of confiscation. 5. Impound the vehicle used in committing the violation for a period not exceeding sixty days. 6. Stop the company's advertising campaigns or prevent it from promoting its activities for the duration of the violation. 7. Suspend or block certain privileges or services provided by the Department until the causes of the violation are eliminated. 8. Place the establishment under surveillance and periodic observation for the period determined by the General Manager 9. Eliminate causes of violation at the expense of the violator and charge him with administrative fees amounting to 20% of the total elimination cost and the Department's cost estimation shall be considered final. Article (12) End Closure Measure The Department shall commit to ending the closure measure once the establishment has eliminated the causes of the violation and paid the prescribed fines. However, if the closure is execution of a judgment, the establishment shall not be reopened except by a decision from the competent execution judge, after verifying that the reasons of the violation have been eliminated based on a letter issued by the Department stating that the necessary conditions to end the closure have been met. Article (13) Seizures Retention The seizures shall be retained in the Department's stores or deposited with the person who had possession thereof at the time of seizure or with someone designated by the competent administration or in the place specified by the judicial authority if the retention decision was issued thereby. The person with whom the seizures had been deposited shall be considered a custodian thereof and shall be punished for breach of trust if he deliberately deteriorates or damages them, or takes any action that hinders disposal thereof, without prejudice to any more severe penalty prescribed by the applicable legislation. Article (14) Seizures Disposition Based on nature of seizures and type of violation, the competent administration shall dispose of them by one of the following methods: 1. Sell them at public auction or by any other means of sale which it deems appropriate. 2. Allocate them in favor of a government authority or a public legal person. 3. Dispose thereof in favor of public interest associations or corporations. 4. Return them to their source or supplier. 5. Recycle or wear them out if they are not suitable for circulation or use in the current state thereof. 6. Any other means decided by the competent administration, provided that it does not contradict with the provisions of the legislation in force. In all cases, it is required to adhere to controls and conditions of seizures disposition which determined by resolution from the Department’s Chairman. Competent administration may seek the assistance of whomever it deems appropriate from those with experience or specialization in disposing of seizures. It may also do so in cooperation with other authorities or entrust the same with a public or private authority. Article (15) Urgent Disposal of Seizures The competent administration may, by way of exception to the provisions of Article (14) of this Law, dispose of the retained seizures urgently if it turned out that their nature, condition or the passage of time may expose them to damage, loss, leakage or diminution or if the costs of preserving them exceed value thereof or if their preservation is difficult due to their properties or composition. In these cases, the competent administration must prepare a report indicating the type of seizures and the reasons for the urgency of disposal thereof before proceeding therein. However, if retention decision is issued by a judicial authority, the competent administration must submit a reasoned request to such authority, accompanied by the mentioned report, to obtain permission to act in the manner which judicial authority deems appropriate. Article (16) Dispose of Seizures After Lifting Retention If it is decided to lift the retention on the seizures, whether due to the absence of an established violation or for any other reason, the competent administration must notify the owner or the person who had possession thereof at the time of seizure to collect them within a suitable period determined according to the nature and conditions of the seizures. If the period expires without the mentioned person proceeds to receive them, the competent administration may dispose of them by sale and price thereof shall be deposited in a special trust account with the Department. if no one proceed to purchase them despite being advertised, the competent administration may dispose thereof by any of the other means stipulated in this Law. Article (17) Seizures Expenses The violator shall bear all expenses incurred by the Department or competent administration due to seizures retention, guarding, storage, transportation or disposal thereof. In case a decision is issued to return the seizures to owner thereof, expenses shall be calculated from the day following the end of the period determined for their receipt, provided that these expenses shall not exceed the estimated value of the seizures to be delivered. Article (18) Collect Department Financial Dues The expenses incurred by the Department as a result of retaining or disposal of the seizures, as well as the fees and fines stipulated under the provisions of this Law or the resolutions issued in implementation thereof, shall be deducted from the proceeds of the seizures sale, if any. Any unpaid amounts of these dues shall be collected under a claim issued by a resolution from the Director General or his authorized representative, which shall include the name of the debtor, the amount and reason for the entitlement. This claim shall be considered writ of execution to be executed by execution judge, in accordance with the provisions of Civil Procedures Law. Article (19) Seizures Regain The owner of the seizures for which a decision to return them thereto has been issued has the right to regain them before disposal thereof and may track them while being in the hands of their holder without consideration. After completing disposal of the seizures through sale, no request to regain them from the holder or from the competent administration shall be accepted and in this case, the owner's right is limited to claim the sale proceeds deposited with the Department. The claim to refund the deposited price shall lapse five years from the date of sale and the amount shall devolve upon Department's treasury. Article (20) Seized Vehicles Impoundment Provisions The provisions of Law No. (10) of 2023 on Impounding, Placing and Disposing Vehicles shall apply to vehicles seized in the act of committing any of the violations stipulated in this Law, insofar as they do not conflict with the provisions of this Law. The General Director shall issue a resolution specifying the procedures and mechanisms for impounding vehicles, placing them in the impound complex and disposal thereof, in execution of the provisions of this Law and resolutions issued in implementation thereof. The vehicle shall be considered abandoned after lapsing of fifteen days from the date of notifying its owner of the clearing away of impoundment reason without applying to receive it. In the event that the impound complex disposes of the vehicle, all Department financial entitlements, whether stated in the seizure decision or in the notices received by the complex before disposing of the sale proceeds, shall be deducted from the sale price. Article (21) Notification Means & Effects Thereof Notifications stipulated in this Law shall be addressed by the Department to establishments or individuals, using any of the following means: 1. Express mail or electronic mail registered with the Department. 2. Short text messages or technical applications approved by the Department 3. Publishing on the official website of the Department. The notice shall produce its legal effect once it is sent by one of the mentioned means or directed to any of the addresses or communication methods registered with the Department. No amendment or change in such addresses or means shall be considered unless it has been officially registered with the Department and the recipient has received notice thereof before the date of notification. Article (22) Resolutions Grievance Each economic establishment against which any of the measures stipulated in this Law have been issued may file grievance to the Department within a period not exceeding fourteen days from the date of notifying it of the resolution being alleged. Grievances shall be referred to Customer Complaints and Grievances Committee in the Department which must decide on them within a maximum period of seven working days from the date of referral. The resolution issued by the Committee in respect thereof shall be final and the expiry of this period without deciding on the complaint shall be considered a rejection thereof. Article (23) Violation Causes Elimination Drives In order to eliminate the causes of violations and correct the status of violating establishments, the Department may take any of the following measures: 1. Reconcile in violations listed in the violations schedule, after eliminating causes thereof at the violator's expense and pay half of the prescribed fine. 2. Reject reconciliation request unless the violating establishment provides a financial guarantee allocated for eliminating the causes of the violation and this guarantee may be confiscated if the establishment fails to complete elimination procedures. 3. Pay the fine imposed on the violator in instalments, according to the terms and controls set by a resolution from the Director General Article (24) Executive & Regulatory Resolutions The President and Director General– each within the limits of his competence – shall issue the necessary resolutions to implement the provisions of this Law. Article (25) Cancel Contradicting Provisions Law No. (7) of 2016 on Commercial Control and Protection on Economic Establishments shall be repealed, as well each provision contradicts with the provisions of this Law. The existing policies, systems, regulations, resolutions and circulars shall continue to be in force, insofar as it does not conflict with provisions thereof, until issuance of what shall replace them. Article (26) Enforcement and Publication Date This Law shall come into force as date of its promulgation and be published in the Official Gazette. Saud Bin Saqr Bin Mohammed Al Qasimi Ras Al Khaimah Ruler Promulgated by us on this day eighth of Rabie Al Akher 1447H. Corresponding to thirtieth of September 2025G.