The UAE’s Ministry of Economy recently outlined the specifics of its new pricing policy, which was previously introduced to monitor the pricing of essential consumer goods. The policy includes three ministerial decrees aimed at regulating the new pricing framework, enhancing the consumer protection system, ensuring market stability and managing stakeholder relationships in the UAE’s markets. The new changes are scheduled to take effect on January 2, 2025.
The new pricing policy prioritizes nine essential consumer goods: cooking oil, eggs, dairy, rice, sugar, poultry, legumes, bread and wheat.
His Excellency Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy, underscored how the UAE, guided by the vision of its wise leadership, has placed a strong emphasis on developing economic policies and legislation to enhance the consumer protection system in the country and provide a safe and stable consumer environment in accordance with the best global practices.
National economic growth
The UAE’s new pricing policy also includes other related items, along with prices for cleaning products, which can only be raised with prior approval from the Ministry. Meanwhile, the remaining products in the country’s markets are subject to rules regarding supply and demand, and other market mechanisms.
In keeping with the ‘We the UAE 2031’ vision, the new pricing policy enhances the standard of living for citizens and supports the expansion of the national economy while enhancing its competitiveness both regionally and internationally.
Al Saleh added that the three new ministerial decrees complement the previous legislative efforts, notably Federal Decree-Law No. (5) of 2023 concerning the amendment of the Consumer Protection Law and its executive regulations, and Cabinet Resolution No. (120) of 2022 regarding the rules and regulations for pricing consumer goods.
Ensuring market stability
The new pricing policy and its regulating decisions aim to monitor the supply and demand of essential consumer goods across all the UAE’s emirates, safeguarding them from sudden disruptions caused by unforeseen circumstances or external economic changes. This is accomplished by improving government oversight in determining the prices of these goods, with the goal of protecting consumers and enhancing product accessibility at fair prices.
Moreover, the policy also aims to limit monopolistic practices and maintain market stability and product quality. It also seeks to establish a balance among suppliers, retailers and online merchants, preventing any detrimental effects on the local market’s competitiveness and the well-being of the community. Additionally, the policy intends to promote accurate information and transparent product pricing in a competitive market.
Monitoring prices of essential consumer goods
Al Saleh provided further details on the three ministerial decisions that established the regulatory framework for the UAE’s new pricing policy. The first ruling is Ministerial Decision No. 246 of 2024 on monitoring prices of essential consumer goods. This decision aims to maintain the stability of prices for essential goods and prevent arbitrary increases in prices.
The decision also includes forming a team to monitor the prices of necessary consumer goods, in coordination with the ministry and other competent authorities. The team’s responsibilities include monitoring changes in consumer goods prices, reviewing requests for price increases and studying complaints against violations of this decision.
The decision also includes provisions prohibiting price increases without prior approvals from the Ministry of Economy, as well as monitoring price fluctuations with the cooperation of the ministry, economic development departments and other relevant authorities.
It also establishes a minimum timeframe of six months between two consecutive price increases, based on specified reasons and conditions. The decision also grants consumers, suppliers and retailers the right to file complaints against any violations.
Furthermore, it grants the Supreme Committee for Consumer Protection the authority to suggest initiating inquiries into actions that violate the provisions outlined in this decision, upon request from the ministry or other appropriate authority.
Promoting transparency in pricing
Regarding the second decision of the UAE’s new pricing policy, Al Saleh said: “The Ministerial Decision No. 245 of 2024 concerning the unit price of certain consumer goods aims to promote transparency in the pricing of goods and provide consumers with accurate information to assist users in making informed decisions that allow for effective comparison between various alternatives.”
The decision also aims to foster fair competition among products by considering their unit price rather than solely relying on overall promotional prices currently in the market.
This decision further mandates both retail stores and online merchants with premises exceeding 1,000 square meters to display the prices per unit in a clear and understandable manner using standardized units of measurement for each product. Moreover, it gives the ministry and other competent authorities the right to monitor and ensure that both retail stores and online merchants comply with the unit pricing model. Furthermore, it allows consumers to file complaints against retail stores and online merchants who violate the provisions outlined in this decision.
Read: UAE Ministry of Finance announces key amendments to tax regulations effective January 2025
Supplier-retailer relationship regulation
Al Saleh went on to explain how Ministerial Decision No. 247 of 2024 concerning the Code of Conduct in the consumer goods sector aims to regulate the contractual relationship between suppliers and retailers and promote integrity and transparency within the essential consumer goods sector. This guideline is essential to the success of the pricing policy. Al Saleh also noted that the Code of Conduct cannot be the sole basis for resolving disagreements between retailers and suppliers in the consumer goods sector.
The Ministry of Economy reiterated its commitment to enhancing cooperation with relevant authorities to guarantee the execution of the new policy. The objective is to promote market stability, protect consumer rights, and realize the vision of the wise leadership in establishing a sustainable national economy founded on transparency and fair competition.
