Page 528 - MOE ENGLISH PR REPORT - JULY 2024

7/15/24, 3:22 PM MoE reviews new Competition Regulation law and its role in developing regulatory & legislative frameworks to promote competition …
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 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

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