The Ministry of Economy held a press briefing to outline the specifics of the new pricing policy that 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.

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. In keeping with the ‘We the UAE 2031’ vision, this enhances the standard of living for citizens and supports the expansion of the national economy, while enhancing its competitiveness both regionally and internationally.

H.E. Al Saleh explained that the 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.His Excellency stated that the policy prioritises nine essential consumer goods, including cooking oil, eggs, dairy, rice, sugar, poultry, legumes, bread, and wheat. These goods also include some related items,along with prices for cleaning products, which can only be raised with prior approval from the Ministry, while the remaining products in the country’s markets are subject to rules regarding supply and demand, and other market mechanisms.

New Policy Ensures Market Stability and Product Quality

The new policy and its regulating decisions aim to monitorthe supply and demand of essential consumer goods across all the UAE’s emirates, safeguarding themfrom 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 andwell-being of the community. Additionally, the policy intends to promote accurate information and transparent product pricing in a competitive market.

Three New Ministerial Decisions Form the Basis of the Pricing Policy

According to the latest ministerial decrees, the Ministry of Economy, relevantlocal authorities, suppliers of essential consumer goods, retailers, digital merchants, and the UAE’s consumers are all instrumental in the successful implementation of the new policy.

H.E. Al Saleh provided further details on the three ministerial decisions that establish the regulatory framework for the new policy. The first rulingis the Ministerial Decision No. 246 of 2024 on monitoring prices of essential consumer goods, which aims to maintain the stability of prices for these goods and prevent arbitrary increases in prices. This will be accomplished by 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 price fluctuations being monitored with the cooperation of theMinistry, economic development departments, and other relevantauthorities. It also establishes a minimum timeframe of six months between two consecutiveprice increases, based on specified reasons and conditions. The decision further grants consumers, suppliers, and retailers the right to file complaints against any violations. Furthermore, the decision grantsthe Supreme Committee for Consumer Protection the authority to suggest initiating enquiries intoactions that violate the provisions outlined in this decision, upon request from the Ministry or other appropriate authority.

Regarding the second decision, His Excellency 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 informationto assist users in making informed decisions that allow foreffective comparison between various alternatives. Additionally, the decision aims to foster fair competition among productsby considering their unit price rather than solely relying on overall promotional prices currently in the market.”

This decision further mandatesboth retail stores and online merchants with premises exceeding 1,000 square meters to display the prices per unit in a clear and understandable mannerusing standardised 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. Additionally, it allowsconsumers to file complaints against retail stores and online merchants who violate the provisions outlined in this decision.

H.E. Al Saleh went on to explain how the 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, which is based on ethical principles and regulationsthat all suppliers, retailers, and consumers must rigorously follow, is essential to the success of the pricing policy. His Excellency also noted that the Code of Conduct cannot be the sole basis for resolving disagreements between retailers and suppliers in the consumer goods sector.

Through the latest announcement, the Ministry of Economy reaffirms 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 realise the vision of the wise leadership in establishing a sustainable national economy founded on transparency and fair competition. As a result, the Ministry reinforces the importance of mindful purchasing practices and the role that society plays in fostering a culture of sustainable consumption.