Page 43 - MOE ENGLISH PR REPORT - FEBRUARY 2025 Part 1

Press Release

H.E. added: “Enhancing the UAE’s competition landscape is a vital step toward strengthening the
market economy and fostering diverse economic activities in line with the economic freedom
principle. This remains a top priority for the Ministry of Economy, as it strives to establish free and
fair competition, which, in turn, provides consumers with greater freedom of choice, attracts local
and foreign investments, and ultimately enhances societal well-being.”

Ensuring fair competition

H.E. continued: “This Cabinet Resolution is a milestone in reinforcing the Ministry’s role in
monitoring and supervising the economic concentration of establishments across the country while
safeguarding the principles of fair competition. By setting specific thresholds and controls for
market dominance and mandatory notification of economic concentration transactions under the
Regulation of Competition Law, the Resolution fosters a more balanced business environment. It
ensures stability in commercial transactions, prevents monopolistic practices, and facilitates the
entry of new companies into the UAE market. This is particularly crucial, given that the country is
home to over 1.1 million companies and economic institutions.”

Thresholds and controls concerning regulation of competition

H.E. underlined that the newly issued Cabinet Resolution on competition-related thresholds serves
as a cornerstone for enforcing the Competition Law. It plays a pivotal role in combating the abuse
of dominance and regulating economic concentration transactions. The Resolution provides a
framework that clearly defines dominance position under the provisions of the Competition Law,
which applies when a single entity or a group of entities collectively holds more than 40 per cent
of the total sales within the relevant market.

The Resolution mandates establishments to notify authorities of economic concentration
transactions under two specific conditions. First, if their total annual sales revenue in the relevant
market in the UAE exceeds AED 300 million in the latest fiscal year. Second, if their total market
share exceeds 40 per cent of the total sales in the relevant market in the UAE during the same
period.

Effective April 2025

H.E. further explained that this Resolution replaces Cabinet Resolution No. 13 of 2016 on the
regulations associated with the application of Federal Law No. 4 of 2012 on the Regulation of
Competition. Any provision contained in any other legislation that contradicts or is in conflict with
the provisions of the new Resolution will be repealed. The Ministry of Economy, in collaboration
with relevant government entities and regulatory authorities, will commence enforcement of the
new Resolution in April 2025, in accordance with the provisions of the Regulation of Competition
Law.

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