Ministry of Economy reviews cabinet resolution on thresholds and controls associated with Competition Law and its role in enhancing oversight of economic concentration transactions in the country

Resolution to take effect in April 2025 enhancing the market economy and ensuring fair competition

The Ministry of Economy organized a media roundtable, led by H.E. Abdullah Ahmed Al Saleh, Undersecretary of the Ministry, to shed light on the provisions of Cabinet Resolution No. 3 of 2025 on the thresholds associated with the implementation of the Federal Decree-Law No. 36 of 2023 on the Regulation of Competition. This Resolution supports the UAE’s efforts to enhance market competition, combat monopolistic practices, and counteract economic concentrations that could harm consumers.

H.E. Al Saleh affirmed that the UAE, guided by the directives of its wise leadership, has succeeded in developing a comprehensive legislative framework to protect competition. In line with global best practices, this framework aims to foster sound commercial practices, enhance production efficiency across various economic sectors, and strengthen the country’s business competitiveness at regional and global levels, making it an attractive destination for companies and entrepreneurs from around the world.

A proactive approach to legislative development

The Undersecretary said: “The UAE introduced the Regulation of Competition Law recently to establish a legal framework that protects and regulates competition, reinforcing its role in driving national economic growth and enhancing the country’s overall business competitiveness. The Ministry has proactively developed its provisions with a forward-looking approach to ensure a modern and comprehensive legislation that aligns with the UAE’s objectives of fostering a competitive environment for businesses while safeguarding consumers from anti-competitive practices.”

H.E. added: “Enhancing the UAE’s competition landscape is a vital step toward strengthening the market economy and fostering diverse economic activities in line with the economic freedom principle. This remains a top priority for the Ministry of Economy, as it strives to establish free and fair competition, which, in turn, provides consumers with greater freedom of choice, attracts local and foreign investments, and ultimately enhances societal well-being.”

Ensuring fair competition

H.E. continued: “This Cabinet Resolution is a milestone in reinforcing the Ministry’s role in monitoring and supervising the economic concentration of establishments across the country while safeguarding the principles of fair competition. By setting specific thresholds and controls for market dominance and mandatory notification of economic concentration transactions under the Regulation of Competition Law, the Resolution fosters a more balanced business environment. It ensures stability in commercial transactions, prevents monopolistic practices, and facilitates the entry of new companies into the UAE market. This is particularly crucial, given that the country is home to over 1.1 million companies and economic institutions.”

Thresholds and controls concerning regulation of competition

H.E. underlined that the newly issued Cabinet Resolution on competition-related thresholds serves as a cornerstone for enforcing the Competition Law. It plays a pivotal role in combating the abuse of dominance and regulating economic concentration transactions. The Resolution provides a framework that clearly defines dominance position under the provisions of the Competition Law, which applies when a single entity or a group of entities collectively holds more than 40 per cent of the total sales within the relevant market.

The Resolution mandates establishments to notify authorities of economic concentration transactions under two specific conditions. First, if their total annual sales revenue in the relevant market in the UAE exceeds AED 300 million in the latest fiscal year. Second, if their total market share exceeds 40 per cent of the total sales in the relevant market in the UAE during the same period.

Effective April 2025

H.E. further explained that this Resolution replaces Cabinet Resolution No. 13 of 2016 on the regulations associated with the application of Federal Law No. 4 of 2012 on the Regulation of Competition. Any provision contained in any other legislation that contradicts or is in conflict with the provisions of the new Resolution will be repealed. The Ministry of Economy, in collaboration with relevant government entities and regulatory authorities, will commence enforcement of the new Resolution in April 2025, in accordance with the provisions of the Regulation of Competition Law.

H.E. said: “We are confident that the implementation of this decision will create a fair competitive environment, which will support the interests of traders and suppliers through equal opportunities, and benefit consumers by providing wider options and competitive prices. Besides, it will encourage the business community to innovate and boost their confidence in the UAE’s flexible and competitive economic legislative environment. The decision will also contribute to enhancing the country’s position in the Global Competitiveness Index.”

Procedures for verifying requests of establishments related to economic concentration operations

During the event, the Ministry explained the procedures it will follow to verify the requests of establishments for economic concentration operations in accordance with the law, which include the following:

• The Minister or his delegate shall issue decisions regarding the economic concentration process within 90 working days starting from the date of receiving the economic concentration request, and this may be extended for another 45 days. The establishments concerned must not take any actions or procedures during this period to complete the economic concentration process. Failure to issue a decision by the Minister or his delegate within this period shall be considered a rejection of the economic concentration process.

• The establishments concerned may submit, on their own initiative, a pledge to take measures aimed at preventing the anti-competitive effects of the economic concentration process upon submitting the application or within a period not exceeding 30 days from the date of receipt of the application, complete and fulfilling the required conditions.

• The Ministry reserves the right to invite interested parties to express their views on the economic concentration process by publishing its basic information on the Ministry’s website.

• Any interested party has the right to submit any data or documents to the Ministry regarding the economic concentration process presented to the Ministry.

• The Ministry holds the right to request any additional information or documents related to the economic concentration process.

In addition, any interested party may file a written grievance against any decision issued based on the provisions of the Competition Law to the Minister, the head of the relevant authority, or the head of the regulatory body, as the case may be, within 15 working days from the date of notification of the decision or procedure being appealed. The complainant may also appeal against the decision to reject grievance before the competent court within 30 days of the date of notification of this decision.

The Ministry explained that since 2021 until now, it has received 15 requests from establishments to notify economic concentration operations, including 10 requests after the issuance of the Competition Regulation Law in 2023. It is expected that economic concentration operations will gradually increase by virtue of the implementation of the decision, thanks to the controls that have been established.

In addition, the Ministry received four complaints regarding economic concentration operations after the issuance of the Competition Regulation Law, one of which was referred to the judiciary. This is the first time that judicial action was initiated to deal with practices that violate competition, reflecting the qualitative shift in dealing with issues related to competition in light of the law.

Consumer rights guarantee

The Ministry emphasized that national efforts to create a dynamic environment to regulate competition in the country as an important incentive to attract investments, conduct business, and increase the volume of trade are continuing, within a regulatory framework that guarantees consumer rights and protects the interests of companies operating in the local market. These efforts support the achievement of the goals of “We UAE 2031” vision to make the country the most prosperous society in the world by the next decade.