//Brexit in the United Arab Emirates – Post-contractual agreement
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Brexit in the United Arab Emirates – Post-contractual agreement

There are many issues in vogue but one of the most important in Brexit but … Do we know how Brexit will affect the United Arab Emirates? How can the United Kingdom take advantage of this special relationship? It is clear that brexit in the United Arab Emirates will be important.

Today in Legal News we will talk about two very interesting topics:

  • How will Brexit affect the United Arab Emirates?
  • Post-contractual non-competition agreement: Benefits and how to implement it

Next we will discuss our main theme, Brexit in the United Arab Emirates.

Brexit in the United Arab Emirates

Brexit in the United Arab Emirates? Is Brexit not in the UK? Of course it is, but in practice the United Kingdom and the United Arab Emirates have a privileged relationship. That privileged relationship makes Brexit not only affect that side of the world.

In a similar situation there are several EU countries that import or export a product due to their commercial relationship. In this way we can talk about the effects of Brexit in the United Arab Emirates, or to make it shorter, Brexit in the United Arab Emirates.

UK | Arab residents opinions on Brexit deal

Special Relationship

To understand this analysis it is important to know the great link between the United Arab Emirates and the United Kingdom. Some of the most relevant elements that have contributed to this special relationship are:

  • Previous to having a great business relationship United Arab Emirates was a British colony. From 1853 until 1971 the Emirates were considered a British Protectorate known as Truce States. The United Kingdom was responsible for the military protection of the territory and maintained a monopoly on international trade and natural resources.
  • Additionally, one of the makers of Emirates and the Dubaiti transport emporium is Maurice Flanagan, a British businessman. The Government of Dubai sought Maurice Flanagan to create its air transport company. Due to its privileged location it would become a regional transport hub. Maurice Flanagan was the founding CEO of Emirates and Executive Vice President of the Emirates Group. Emirates is currently among the 10 best airlines in the world. Currently more than 50% of Dubai GDP comes from the transportation industry.
Emirates Airlines - Developmental drivers detected by Gustavo Mirabal
Emirates Airlines – Developmental drivers detected by Gustavo Mirabal
  • Currently the legislation governing the DIFC (Dubai International Financial Center) is a copy of the commercial legislation of the United Kingdom. Even the judges are brought from the United Kingdom. There the legislation is published first in English. This is an area focused on attracting foreign investments. They do this through a liberal legislation that allows 100% repatriation of capital and 0% tax for 40 years.

This relationship explains why it is one of the favorite places to invest in the United Kingdom. It is also one of the favorite places to go to retirement of British retirees.

Brexit effect in the United Arab Emirates for British citizens.

Are You Ready for Brexit in the United Arab Emirates?
Are You Ready for Brexit in the United Arab Emirates?

Of course, the fall of the pound sterling is one of the transversal elements to the Brexit effect in the United Arab Emirates. The relationship between the pound and the dinar will make one or the other stronger or more competitive. It remains to be seen which elements of competitiveness can be incorporated into the British economy. Thanks to the freedom of decisions, measures can be taken to boost the British economy to measure. But in the meantime here we will see some of the possible scenarios:

2020 good time to buy pounds sterling

Soon the pound will again have a steep decline against Dirham. Trends have made the pound sterling oscillate but its tendency is to decline. There is still a place to buy and sell higher or wait for the decline to make investments in pounds sterling.

British workers in the United Arab Emirates have greater purchasing power. They can make important purchases in the United Kingdom.

Travel to the UK cheaper

It is logical that the weakness of the pound sterling leads to cheaper trips. It is logical that with the privileged relationship of the United Kingdom and the United Arab Emirates, it is one of the pillars to boost the British economy.

Investments in the United Kingdom

Although in the first of change the fall of the pound sterling does prevent losses, the truth is that in the long term is healthier. Competitiveness will grow and companies will begin to have a better position for international markets. If you can think of long-term investments, think of the United Kingdom if you win in Dirhams.

Brexit does not diminish the UK's appeal as an investment destination

Do you want to buy a home in the United Kingdom?

Take advantage of the strength of Dirham will allow you to get lower prices. The ideal time is after mid-2020 when it begins to fall unless the fall is carried out with the entry into force of Brexit. The effect of Brexit in the United Arab Emirates will be very important. You have to monitor the real estate market.

Pensions in United Kingdom

You may want to consider investments in the DIFC to multiply your income in British Pounds. Take advantage of making rapid changes or investing directly within the United Kingdom in the medium and long term.

What can Brexit learn in the United Arab Emirates?

Definitely the free trade zone of Dubai called DIFC is a lesson that the United Kingdom must study. It is possible that this is one of the lessons that could help boost the competitiveness of the pound sterling. It is time for us to project lessons learned from Brexit in the United Arab Emirates and the roads they have charted in economic growth.

Post-contractual non-competition agreement

When a worker handles privileged information of the company, the signing of a non-competition agreement post-contractual. These agreements stipulate a period of time where the worker cannot contract with competing companies. Such agreements guarantee compensation during the pact period.

Case study of a post-contractual non-competition agreement

Recently the worker of a publishing company having gone to work in the competition kept collecting the compensation of the pact.

Compensation of the post-contractual non-competition pact represented 50% of the salary. The non-competition agreement would last one year from the end of the contract.

The terms of the aforementioned agreement established that the breach would lead to the following compensation:

  • Return of the pact money (monthly amount equivalent to 50% of the wages received)
  • Payment of 100% of the salaries of the last year of the contract.
  • Payment for damages.

The sentence

Given the circumstances, the Supreme Court considered several elements for its sentence:

  • The former worker having gone to work to the competition charged the compensation of the pact.
  • The company fully complied with the payments of the post-contractual non-competition agreement.
  • There was an increase in the cancellation of subscriptions. Which the company could not prove reliably was the product of the resignation of the editor.
  • Clause of the pact was considered abusive. The worker’s compensation was 50% for the duration of the pact of one year but its breach implied the return of 100% of the salaries of the last year.

The former worker in anticipation of the trial made the return of compensation before the start of the trial. However, he had already received said money and only did so under the anticipation of the respective trial.

This led the Spanish Supreme Court to condemn the former worker to pay:

  • The indemnities of the pact which had already been returned.
  • 50% of the salaries received during the last year before the cancellation of the contract and not 100% as indicated in the non contractual competition agreement.

We see the sentence as a balanced and mediating sentence. From this precedent we can extract the following lessons:

  • Compensation for non-compliance must be in proportion to the compensation of the pact itself for non-compliance with the worker.
  • To establish clauses of damages must have mechanisms to be able to measure or prove it

Post-contractual non-competition agreement are fundamental. These will prevent critical business information from going to competitors. If you need support for writing such agreements we can advise you.


As we can see, we must be attentive and prepared for Brexit in the United Arab Emirates. The United Kingdom can take advantage of its special relationship with the United Arab Emirates to use its economy as a pivot and to learn. It is a stellar moment and an opportunity for the United Kingdom and its competitiveness.

If you would like advice for the elaboration of a non-competition agreement, contact Gustavo Mirabal Castro




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