UAE to ban unauthorised price hikes on nine essential goods

Dubai: Starting January 2, 2025, the UAE Ministry of Economy will roll out a ban on any unauthorised price increases on cooking oil, eggs, dairy, rice, sugar, poultry, legumes, bread, and wheat, as it looks to protect consumers and promote competition.

The UAE Ministry of Economy, on Tuesday, will implement the new pricing policy on nine categories of essential goods, with any price hikes requiring prior approval from the ministry. It added that at least six months are needed between two consecutive increases in prices of these basic goods from next year.

Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy, stated that the new policy aligns with ongoing legislative reforms, including amendments to the Consumer Protection Law and Cabinet guidelines on pricing. These efforts aim to enhance transparency, market stability, and consumer rights.

The newly announced ministerial decrees focus on prices for essential consumer goods to ensure price stability and protect consumers, the unit price of certain consumer goods, requiring retail stores to display unit prices to promote transparency, and the consumer goods sector's guidelines for conduct, which governs the contractual relationship between suppliers and retailers in the marketplace.

The price policy and its regulating decisions are intended to improve governmental oversight in setting the prices of essential goods to protect consumers, guarantee market stability and product quality, and balance supply and demand for essential consumer goods across all emirates in the UAE, the ministry revealed in a statement.

Reporting violations

The policy grants the Ministry supervisory authority to enforce compliance, while empowering consumers to report violations. It seeks to balance supply and demand, prevent monopolistic practices, and promote sustainable consumption.

Al Saleh emphasised that the measures reflect the UAE’s commitment to global best practices in consumer protection and economic governance, fostering a sustainable and competitive market environment. The Ministry continues to collaborate with stakeholders to ensure the successful implementation of the policy.

Monitoring price stability: A dedicated team will oversee pricing, assess requests for increases, and investigate complaints. Price hikes are restricted to a minimum six-month interval under specified conditions.

Transparency in pricing: Retailers and online merchants with premises larger than 1,000 square meters must display unit prices for goods, enabling consumers to make informed choices.

Code of conduct: New guidelines regulate relationships between suppliers and retailers, ensuring fair competition and ethical practices.