The UAE has a Competition Law (Federal Law No. 4 of 2012, amended by Law No. 4 of 2022) that prohibits anti-competitive agreements, abuse of market dominance, and anti-competitive mergers. Here is a business guide.
UAE Competition Law Overview
The UAE Competition Law is administered by the Ministry of Economy Competition Department. It applies to: all businesses operating in the UAE (with some exemptions). Exemptions: businesses in strategic sectors (oil and gas, certain utilities) may be exempt. Small market share businesses (below the dominance threshold) have a lighter-touch regime. The law has recently been strengthened — the 2022 amendments increased penalties and expanded the scope of prohibited conduct.
Anti-Competitive Agreements (Cartel Prohibition)
The following agreements between competitors are prohibited: price-fixing (agreeing on prices, pricing formulas, or price changes), market allocation (dividing customers, territories, or product markets between competitors), bid-rigging (coordinating bids in tenders), and production or supply restrictions. Penalty for cartel violations: fines of 2–10% of annual UAE revenues (minimum AED 500,000). Leniency programme: the first company to report a cartel to the Ministry of Economy can receive immunity from fines — a strong incentive for participants in anti-competitive agreements to self-report.
Abuse of Dominant Market Position
A company is considered to have a “dominant position” if it has a market share exceeding 40% of the relevant market (threshold set by the 2022 regulations). Prohibited conduct by dominant companies: predatory pricing (below-cost pricing to drive out competitors), discriminatory pricing, exclusive dealing and tying arrangements that harm competition, and refusal to supply key inputs to competitors without justification. Dominance itself is not prohibited — only the ABUSE of dominance.