In a significant step to enhance the UAE's economic landscape, the Ministry of Economy has announced the Federal Decree-Law No. 36 of 2023 on competition regulation.
This new legislation aims to promote and protect competition, combat monopolistic practices, and support the growth of economic sectors, thereby boosting productivity and enhancing the country's appeal to both domestic and foreign investors.
Legislative Milestone
Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy, emphasized the importance of the new law, stating,
"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."
Al Saleh highlighted that the development of this legislation involved extensive national efforts, proactive strategies, and international benchmarking. The Ministry of Economy coordinated with 14 federal and local government entities and consulted international reports and studies to ensure a modern, comprehensive framework that supports enhanced competitiveness and consumer protection.
Key Objectives
The primary goals of the new law include:
- Combating monopolistic practices to create a stimulating environment for enterprises.
- Enhancing market economy and economic activities while protecting consumer interests.
- Monitoring and regulating economic concentration to prevent practices that could undermine, limit, or restrict competition.
Highlights of the Competition Regulation Act
The new legislation introduces several key provisions to foster fair competition:
- Establishes a dynamic regulatory framework for both physical and digital markets, aligning with international market dimensions.
- Prohibits enterprises from abusing economic dependency situations and offering low prices aimed at market exclusion.
- Covers all aspects of economic concentration processes with flexible criteria based on annual sales values.
- Encourages stakeholder participation in economic concentration applications and supports integration between federal and local authorities.
Implementation and Responsibilities
The Ministry of Economy outlined its responsibilities under the new law, which include:
- Implementing competition policies in collaboration with federal and local entities.
- Coordinating efforts to combat anti-competitive practices.
- Maintaining a registry of complaints and investigating anti-competitive activities.
- Providing recommendations to the Minister of Economy on necessary actions.
The Ministry reiterated its commitment to fostering a competitive market built on fairness, equality, and efficiency. The law aims to improve the business environment across various economic sectors and raise awareness about the importance of competition. This initiative is part of the UAE’s broader vision to establish itself as a global hub for the new economy by 2031.
The new competition law defines economic concentration and sets conditions for its regulation, including mandatory applications for economic concentration processes and the establishment of controls by the Executive Regulation.
News Source: Emirates News Agency
