Page 565 - MOE ENGLISH PR REPORT - JULY 2024

7/15/24, 3:25 PM Ministry Of Economy Reviews New Competition Regulation Law And Its Role In Developing Regulatory & Legislative Frameworks T…
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.

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