Page 453 - MOE ENGLISH PR REPORT - FEBRUARY 2025 Part 1

The provisions of the law states that when a single entity or a group of entities collectively holds
more than 40 per cent of the total sales within the relevant market, it holds a dominant position in
the market. The law also stipulates that if a company’s total annual sales revenue in the relevant
market exceeds Dh300 million in the financial year, it should report to regulators.

Reporting process

Once a company reports this, the ministry has 90 days to take a decision, which can be extended by
45 days. Al Salah added that if the request is rejected, the company “cannot practice its business or
go for any acquisition or merger in the market”
The establishments may submit, of their own accord, a pledge to take measures aimed at
preventing anti-competitive effects.

However, he added that some industries are exempted from this new rule. “Exceptions are allowed
on some conditions,” he said. “One is, if the industry is owned totally by the government or if a
company has a declaration from the government that this company will be exempted from the law.”

He added that any company which falls into a sector that has specific laws will also be
exempted. “For example, if we are talking about telecommunication, then TDRA will be the
regulatory authority to implement the anti-competition in that industry,” he said. “In the absence of
a specific sectoral law, this law will be implemented in coordination with the Ministry of Economy.”

Time for change

According to Al-Salah, the new resolution is the need of the hour. “We issued the first law for anti-
competition in 2012,” he said. “But some sectors were excluded from it. Now we included all the
sectors in this practice. Also, the competition law needs to keep up with the advancements in
technology and the digital economy.”

He added that by setting specific thresholds and controls for market dominance and mandatory
notification, 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,” he said. “This is particularly crucial, given that the country is
home to over 1.1 million companies and economic institutions.”

https://www.khaleejtimes.com/uae/uae-implements-new-law-to-ensure-fair-market-check-
monopoly?amp=1