ABU DHABI: The UAE Ministry of Economy has announced the implementation of a significant new pricing policy for nine key consumer goods, with a notable feature being the requirement for a six-month gap between any consecutive price hikes.
This policy, which will take effect on 2 January 2025, includes three new ministerial decrees aimed at strengthening market stability, protecting consumers, and ensuring fair competition in the UAE’s retail sector.
Essential goods covered
The pricing policy focuses on nine essential consumer goods, which include cooking oil, eggs, dairy, rice, sugar, poultry, legumes, bread, and wheat. These are considered vital for households, and the government is keen to prevent arbitrary price increases that could disrupt the market.
The new regulations stipulate that any price increase for these items must first receive approval from the Ministry of Economy, a measure designed to ensure pricing fairness across the country’s markets.
6-month freeze on price hikes
The most significant aspect of the new decrees is the six-month gap requirement between consecutive price hikes. This ensures that suppliers and retailers are not permitted to raise prices more frequently than once every six months unless under exceptional circumstances.
This regulation is expected to provide stability in the prices of essential goods, safeguarding consumers from sudden price fluctuations.
Greater transparency
Ministerial Decision No. 245 of 2024, part of the new set of rules, mandates that retailers, both physical stores and online merchants with premises exceeding 1,000 square meters, display unit prices for essential goods. This move is intended to promote transparency, allowing consumers to make more informed purchasing decisions.
The new rule will apply across all UAE emirates, helping shoppers compare prices and ensuring fair competition in the market.
Consumer protection
The new policy also aligns with broader efforts to enhance the UAE’s consumer protection framework. It complements previous legislative efforts such as Federal Decree-Law No. (5) of 2023, which amended the Consumer Protection Law.
Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy, emphasised the government's commitment to building a more robust consumer protection ecosystem. He highlighted that these steps are in line with the UAE’s Vision 2031, which aims to improve the standard of living for citizens while bolstering the nation’s economic competitiveness.
Impact on suppliers and retailers
The three ministerial decisions work together to regulate both suppliers and retailers. For instance, the Ministerial Decision No. 246 of 2024 focuses on monitoring the prices of essential goods. A dedicated team will oversee the implementation of the pricing policy, ensuring that no price increases occur without prior approval from the Ministry. The team will also handle complaints and enforce penalties for violations.
Under these new regulations, suppliers and retailers are also encouraged to adopt ethical practices in their dealings. The Ministerial Decision No. 247 of 2024, known as the Code of Conduct, governs the contractual relationships between suppliers and retailers. This regulation ensures that all parties involved in the distribution and sale of essential goods operate with integrity and transparency.
Monitoring & Complaints
To ensure compliance with the new pricing rules, the Ministry of Economy, along with local authorities, will monitor the market closely. Any violation of the new pricing decrees can result in penalties or sanctions, and consumers are encouraged to report instances of non-compliance. This transparency is aimed at ensuring that the market remains fair and that price stability is upheld for the benefit of the wider population.
The UAE government is determined to foster an environment where consumers are protected from price manipulation and market instability. The latest pricing policies are a critical component of the national economic strategy. By controlling the prices of essential goods and maintaining market equilibrium, the Ministry of Economy hopes to contribute to the wider objectives of creating a sustainable national economy. This includes balancing supply and demand, preventing monopolistic practices, and ensuring that consumers continue to have access to quality products at reasonable prices.
The Ministry of Economy is working closely with other government departments, suppliers, retailers, and consumers to ensure that the new pricing policies are effectively implemented. This comprehensive approach underscores the UAE’s commitment to building a stable and transparent marketplace, where all stakeholders play a role in ensuring the fair treatment of consumers.
Empowering consumers
Another key element of the new pricing policy is empowering consumers. With the ability to file complaints against violations, UAE residents are encouraged to take an active role in ensuring the integrity of the marketplace. By holding retailers and suppliers accountable, consumers can help maintain a fair and competitive market, thus contributing to the stability of the national economy.
The ministry has also stressed the importance of promoting sustainable consumption practices. By encouraging consumers to make mindful purchasing decisions, the government hopes to cultivate a more responsible and sustainable consumer culture in the UAE.