Page 539 - MOE ENGLISH PR REPORT - JULY 2024

7/15/24, 3:23 PM Ministry of Economy reviews new Competition Regulation law and its role in developing regulatory & legislative frameworks to prom…
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 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.

https://www.dubaiprnetwork.com/pr.asp?pr=180016 3/3