In a move to foster a competitive business landscape, the Ministry of Economy of the UAE has introduced Federal Decree-Law No. 36 of 2023.
This new legislation targets monopolistic practices, aiming to support the growth of economic sectors and boost productivity, thus enhancing the country’s attractiveness to domestic and foreign investments.
Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy, highlighted that this law is a significant step towards creating a robust legislative system aligned with global best practices.
“It [the law] 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,” Al Saleh said. “Its articles address all conditions that may undermine, limit, prevent or restrict competition.”
Key features of the new law include:
- Regulation of Competition: The law introduces measures to prevent the abuse of economic dependency and prohibits practices like setting very low prices to exclude competitors.
- Economic Concentration: It covers all economic concentration processes, ensuring flexibility based on annual sales values rather than just market share.
- Public Involvement: Relevant parties can express their views on economic concentration projects, aligning with global best practices.
- Local Authority Empowerment: It enhances the roles of local authorities in addressing anti-competitive practices.
The Ministry also outlined its responsibilities under the new law, including policy implementation, coordinating with relevant authorities, and investigating anti-competitive practices. This initiative aims to ensure a competitive market environment built on fairness and efficiency.
Additionally, the law defines economic concentration and sets conditions for its completion, requiring establishments to submit applications to the Ministry of Economy at least 90 days prior to finalization.
The new Competition Regulation Committee will propose policies and scrutinize issues related to the law’s application, ensuring robust competition protection in the UAE.
