UAE Competition Law: Key Rules for Businesses in the UAE Market

Q: Prohibited Anti-Competitive Practices

Horizontal Agreements (between competitors) that are absolutely prohibited include: price-fixing cartels, market sharing agreements, output restriction agreements, and bid-rigging in tenders. Vertical Agreements (between suppliers and distributors) that may be prohibited include: resale price maintenance (dictating retail prices), exclusive distribution that restricts competition, and tying arrangements that force buyers to purchase unwanted products.

📅 Last reviewed: August 4, 2026📋 By: UAE Freezone Compare Regulatory Team✅ Fact-checked by UAE Freezone Compare Editorial Team

UAE Federal Law No. 36 of 2023 on Regulating Competition (the Competition Law) prohibits anti-competitive practices and controls mergers and acquisitions that may harm competition in UAE markets. It is enforced by the UAE Ministry of Economy.

In this guide:

Prohibited Anti-Competitive Practices
Abuse of Dominant Position
Merger Control
Exemptions
Penalties

Prohibited Anti-Competitive Practices

Horizontal Agreements (between competitors) that are absolutely prohibited include: price-fixing cartels, market sharing agreements, output restriction agreements, and bid-rigging in tenders.

Vertical Agreements (between suppliers and distributors) that may be prohibited include: resale price maintenance (dictating retail prices), exclusive distribution that restricts competition, and tying arrangements that force buyers to purchase unwanted products.

Abuse of Dominant Position

Companies holding a “dominant position” in a UAE market (generally 40%+ market share) cannot: impose unfair prices or trading conditions, refuse to deal with customers without objective justification, apply dissimilar conditions to equivalent transactions, or make contracts conditional on purchasing unrelated products.

Merger Control

Mergers, acquisitions, and joint ventures that meet turnover thresholds must be notified to the UAE Ministry of Economy for approval: Combined UAE turnover of the parties exceeds AED 1 billion, or one party has more than 40% of the UAE market share. Notification must be filed before completing the transaction. The Ministry has 90 days to approve, conditionally approve, or block the merger.

Exemptions

Small businesses with combined UAE market share below 10% (horizontal agreements) or 15% (vertical agreements) are generally exempt. Intellectual property licensing agreements within the scope of the licence are exempt. Government-owned entities acting in the public interest may be partially exempt.

Penalties

Fines for anti-competitive practices: AED 500,000–5 million for first offence, up to 10% of annual UAE revenues for repeat offences. Criminal penalties including imprisonment apply to individuals who knowingly participate in cartel activities.