Page 40 - MOE ENGLISH PR REPORT - JULY 2024

Press Release

awareness on the significance of cultivating a culture of competition among consumers and
private sector, ensuring the sustainability and growth of the national economy for the next 50
years. Furthermore, it highlighted that the new Law will enhance the UAE's position in
numerous global economic competitiveness indicators. National efforts are currently underway
to develop a more agile and sustainable competitive system, including the launch of more
pioneering legislation, initiatives, and programs, to be implemented with the ultimate objective
of establishing the UAE a global hub for the new economy within the next decade, in line with
the objectives outlined in the 'We the UAE 2031' vision.

Competition and Economic Concentration

The new law defines competition as the act of conducting economic activities based on market
mechanisms without affecting or restricting such mechanisms, which could harm trade,
development, and consumer interests. The law clarifies that economic concentration is any act
resulting in complete or partial transfer (merger or acquisition) of the ownership or usufruct
rights of property, rights, equity, shares or obligations of an establishment to another,
empowering the establishment or a group of establishments to directly or indirectly control
another establishment or group of establishments.

The law specifies a set of conditions to complete economic concentration operations that would
affect the level of competition in the relevant market, and in particular create or strengthen a
dominant position. The relevant establishments are required to submit an application on the
form designated for this purpose to the Ministry of Economy at least 90 days prior to the
completion thereof and shall attach the required documents.

Pursuant to the new law, there are two conditions that must be satisfied in order to successfully
complete the process of economic concentration. The first condition indicates that the total
value of annual sales of such establishments in the relevant market, for the last fiscal year, shall
exceed the amount determined by the Cabinet, upon the Minister's proposal. The second
condition states that the total share of such establishments shall exceed the percentage of the
total transactions in the relevant market during the last fiscal year, as determined by the Cabinet.
The Executive Regulation of this law establishes the controls of submitting the application for
economic concentration, the documents to be attached, and its examination mechanisms.

Responsibilities of Competition Regulation Committee

The law assigns new responsibilities to the Competition Regulation Committee as well. These
include proposing the general policy for protecting competition in the country and presenting
it to the Minister to take necessary actions. The Committee is also responsible for scrutinizing
issues related to the application of the provisions of this law and making recommendations
thereon to the Minister. Additionally, it will propose legislation and measures for protecting
competition in the UAE.
-Ends-

3