UAE: New pricing policy to keep price hikes in check

The UAE Cabinet has adopted a new pricing policy for consumer goods. The Ministry of Economy will be responsible for ensuring control over the commitment of basic commodity providers and sales outlets to pricing nine basic commodities in accordance with the policy.

The policy includes cooking oils, eggs, dairy, rice, sugar, poultry, legumes, bread and wheat.

This came as His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, chaired a Cabinet meeting on Sunday.

Earlier this year, the Ministry of Economy approved a policy to keep price hikes of basic food items in check. As per the policy, suppliers will have to submit evidence to justify price increases of some of the most sought-after items such as fresh and dry milk, fresh chicken and eggs, bread, flour, sugar, salt, rice and legumes, cooking oil, mineral water and others.

This group includes more than 11,000 commodities, and suppliers who want to raise their prices due to high import costs must submit all relevant evidence and data. The ministry will then decide on the approval and the rate hike.

Supporting local products

The Cabinet also adopted a new policy to support local products by changing the customs exemption policy. The exemption will now only be for imported materials that are not locally available.

“The goal is to encourage factories to use locally produced materials to support them,”

Sheikh Mohammed tweeted.

Shariah supervisory committees for companies

The Cabinet adopted a decision regarding the standards, requirements and controls of supervisory committees for companies that conduct their activities in accordance with the provisions of Islamic Shariah. The decision sets controls for committees’ work.

As for the companies, they must obtain the approval of the internal Shariah Supervisory committees after their establishment and before starting their activities.

News Source: Khaleej Times