Dubai: The UAE on Sunday took steps that could move the country towards a more liberal economy.
His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, said that commercial agencies will be ‘scrapped' for specific food products. The announcement came in a tweet by Shaikh Mohammad after a Cabinet meeting on Sunday.
"Just finished a cabinet meeting, we have agreed on scrapping commercial agencies for a group of basic food commodities," he tweeted from the Cabinet meeting he chaired at the Presidential Court.
"Basic food commodities should never be under monopoly; the interest of society always comes before personal interests," he wrote on Twitter.
Commodities
WAM, the Emirates news agency, reported that giving the green light for the liberalisation of some foodstuff and basic commodities from commercial agencies came as per a memorandum submitted to the Cabinet by the Ministry of Economy.
The commodities include all types of drinking water, dairy and livestock products, cooking oil and fats, eggs and others foodstuffs, WAM reported.
While it's a bit difficult to say which direction it is going to go at this stage, one thing is for certain that it's sending out "the right signal" about the country's economy, said Abdul Aziz Al Yaqout, Regional Managing Partner at DLA Piper Middle East.
The country is moving away from the protectionist approach and opening up to the global market, he said.
"It's a testament to the sentiments in the UAE and the confidence that the UAE can compete strongly in the global market," Al Yaqout told Gulf News. "In the long run, competition is good for businesses and it's good for the consumers."
Unjustified price rise
This, however, may not be the best news for the exclusive agents of those specific food products. "Surely it's not going to be nice for the agent, but in a free market economy you get the best service, the best price and the best value for money." Al Yaqout said.
The move aims to control unjustified price increases and to fight monopolisation and exploitation in the local market.
How quickly such a move will affect prices depends on the market, Al Yaqout said. "We're seeing it [this liberalisation] in other areas in the corporate law," Al Yaqout said. "They're taking leadership in this regard in our region."
Also at the meeting, the Cabinet approved a draft law for public notaries, amendments of various signed agreements between the UAE and the other countries and the 2012 draft budget of the National Media Council and Federal Customs Authority.
