Ministry of Economy Reviews New Competition Regulation Law to Foster Market Fairness in the UAE

The Ministry of Economy held a media briefing to review Federal Decree-Law No. 36 of 2023 on competition regulation. This new legislation aims to promote and protect competition in the UAE, combat monopolistic practices, support economic sector growth, and enhance productivity, thereby increasing the country's appeal to both domestic and foreign investments.

H.E. Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy, stated, "The law marks a new milestone in the UAE’s efforts to develop a leading legislative system for competition in accordance with global best practices. It provides a comprehensive legal framework to enhance the role of competition in the growth of the national economy and the business environment in the country."

Key Features of the New Competition Regulation Law:

• Monopolistic Practices: The law aims to combat monopolistic practices by ensuring a stimulating environment for enterprises, enhancing effectiveness, competitiveness, and protecting consumer interests.
• Economic Concentration: It covers all economic concentration processes, introduces controls to prevent abuse of economic dependency, and prohibits actions like offering very low prices to exclude competitors.
• Market Regulation: The law regulates both physical and virtual markets, aligning with the growth of digital trade and ensuring a clear regulatory framework for competition.
• Flexibility in Criteria: Flexibility in the criteria for verifying economic concentration processes, based on the annual sales value of the enterprises involved.

The Ministry also highlighted the collaborative efforts in developing this legislation, involving 14 federal and local government entities and international studies on competition.

Responsibilities and Implementation: The new law assigns the Ministry of Economy with the task of implementing competition policies in collaboration with federal and local entities, combating anti-competitive practices, and maintaining a registry of notices and complaints. The Ministry is also responsible for investigating anti-competitive practices and recommending actions to the Minister of Economy.

Role of the Competition Regulation Committee: The law assigns new responsibilities to the Competition Regulation Committee, including proposing general policies for protecting competition, scrutinizing issues related to the law, and recommending relevant legislation and measures to the Minister.

Economic Impact and Future Initiatives: The Ministry reiterated its commitment to fostering a competitive market built on fairness, equality, and efficiency. The new law is expected to enhance the UAE's position in global economic competitiveness indicators and support the country's vision outlined in 'We the UAE 2031.'