Application of Trade Secrets in Businesses

UAE has become one of the fastest-growing countries in the world. Gone are the days when UAE was barren land, now its home to billion-dollar industries and it is only continuing to grow. However, every business is unique and has special selling points or unique products. The uniqueness is what differentiates businesses. If every coffee company sold the same type of coffee then everyone would go to the closest coffee shop. But since variety and taste are factors, differentiation is key when it comes to any business.

Now, these unique products and selling points are not out in the open for everyone to discover. These are secrets well-guarded by enterprises that use these on a daily basis. If we look at the recipe of Coca Cola, there is only one company in the world that produces it and the recipe has been a secret for over 130 years. Other companies have tried to copy it but haven’t come up with the exact same drink. This is Coca Cola’s selling point. Trade Secrets hence require a high level of protection.

How Businesses Apply Trade Secrets in the UAE?

Businesses ranging from IT all the way to restaurants use trade secrets in the  UAE. It might be for, algorithms, processes, designs, recipes, formulae etc.

Tech Business

 A prime example would be Google’s search engine. What makes Google so successful is its search engine and the algorithm used is a trade secret. Tech companies patent certain processes but this will only be valid for 20 years and other big companies can copy the same unique factor. The company would be devoid of any unique factor. This can result in the downfall of a company. Certain programs are also made trade secrets. For example, programs with immense potential for the future would be wasted if just patented as anyone would be able to acquire it after the patent expires. For those wishing to start an IT company in the UAE with a unique trade secret, it is advisable to have knowledge of the methods used to protect trade secrets.

Restaurants and Food Manufacturers

Recipes are the most common trade secrets of the food industry. KFC chicken is an excellent example. The fried chicken recipe is a secret and has been well guarded for years. Coca Cola is another famous secret recipe. All over the world, there are local restaurants that have excellent food and some of the recipes for these dishes are kept secret. Some companies from the food sector also keep the processes as trade secrets. Krispy Kreme, for example, uses a secret process to make their doughnuts fluffy and soft.

Chemical Industry

Washing detergents, cleaners, stain removers etc. are various products manufactured by the chemical industry.  Some of these cleaners work better than conventional cleaners but the formulae, however, are kept top secret. Only a select few are given access to the formulae. The skin and beauty industry also has a lot of trade secrets when it comes to the formulation of skincare products.


Different companies use different data to analyse and come to conclusions. This would be sales projections, profit margin, forecasts etc. This would be a result of in-depth research of various data and statistics. These would require high-level cybersecurity to be guarded well.

Equipment Manufacturing

The equipment manufacturing companies only achieve an efficient final product when a certain type of process is used. If the process is patented then the secret is only safe for twenty years. Companies opt to keep this process or method a secret. This way they can create a monopoly for that specific product or market thereby increasing growth and boosting profit and revenue.

If you wish to set up a company in the UAE with a trade secret, then

  •  It should be mandatory to have all licensees, and independent contractors, actual and potential customers,  joint ventures, subcontractors, employees and manufacturers exposed to trade secrets to sign nondisclosure agreements.
  •  The company should make it a policy to remind the employees what the company considers as trade secrets and that the non-disclosure applies beyond the course of employment.
  • The documents treated as trade secrets be covered with seals so as to prevent any leakage of any information.
  • There should be efficient exit interviews being conducted. All the company belongings must be returned by the employee at this interview as well.
  • There should be sufficient measures taken to prevent access to trade secrets
  • Full knowledge about the trade secret must be available only to the trusted few

Need Help?

For those wishing to start a company in the UAE, it is mandatory to have knowledge of the intellectual property services available in the country. The team of experts at Commitbiz are a group of excellent individuals who’ll guide you through the trade secret formalities. Feel free to contact us and we’d be happy to help you.