Page 508 - MOE ENGLISH PR REPORT - JULY 2024

7/16/24, 3:55 PM Ministry of Economy reviews new Competition Regulation law and its role in developing regulatory & legislative frameworks to prom…
Furthermore, the briefing session focused on the powers and responsibilities assigned to the Ministry of Economy under
the new Law. These include the implementation of the competition policies in collaboration with federal and local

entities in the country and coordinating with relevant authorities to combat any form of activities or practices in breach
of the provisions of the law. Other responsibilities include the preparation of a registry of notices and complaints,

information collection, and investigation of anti-competitive practices based on complaints or on its own initiative, thus
addressing such practices in cooperation with relevant authorities and providing recommendations to the Minister of

Economy on decisions to be taken in this regard.

The Ministry reiterated its unwavering commitment to working alongside its partners from both the public and private
sectors to achieve these goals. Its primary objective is to foster a competitive market in the UAE that is built upon

principles of fairness, equality, and efficiency. These include the expansion of activities across various economic sectors
in order to improve the overall business environment within the country. Moreover, the Ministry aims to raise 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

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