If you’re running a business in the UAE, there’s a new rule you’ll want to know about. In a major move to keep the market fair and open for everyone, the UAE has introduced new competition regulations aimed at preventing monopolies and making sure no single company dominates an industry.
“This is an important step because of the maturity of our market,” said Abdullah Ahmed Al Saleh, Undersecretary of the Ministry during a media roundtable.
Under the Regulation of Competition federal law, any business that controls more than 40 per cent of total sales in its sector or earns over Dh300 million in revenue per year will now have to notify regulators. The idea? To stop companies from getting too big and blocking out competition, ensuring a level playing field for all businesses — big or small.
So, What Happens If a Company Hits That 40% Mark?
Once a company reports its dominant position, the Ministry of Economy has 90 days to review the case (with a possible extension of 45 days). If regulators reject the request, the company can’t move forward with business expansions, mergers, or acquisitions.
To avoid hitting roadblocks, businesses can also submit proposals to show they’re taking steps to prevent unfair competition.
Are There Any Exceptions?
“Exceptions are allowed on some conditions,” said Al Saleh.
“One is, if the industry is owned totally by the government or if a company has a declaration from the government that this company will be exempted from the law.”
Any company which falls into a sector that has specific laws will also be exempted. “For example, if we are talking about telecommunication, then TDRA will be the regulatory authority to implement the anti-competition in that industry,” he said.
“In the absence of a specific sectoral law, this law will be implemented in coordination with the Ministry of Economy.”
Why Now?
“We first introduced an anti-competition law in 2012, but some sectors were excluded. Now, all industries are covered. Plus, we needed to keep up with advancements in technology and the digital economy,” Al Saleh said.
By setting clear limits on market dominance, the UAE hopes to create a more balanced business environment where startups and new businesses have a fair shot at success.
With over 1.1 million companies and economic institutions in the UAE, this law is expected to shake up the market—making it fairer, more competitive, and more welcoming for new players.
So, if you’re running a business in the UAE, it’s time to pay attention to these new rules—because fair competition just became the new normal!
(Inputs from Khaleej Times)
