UAE sets 6-month minimum gap for price hikes on 9 essential goods

UAE Enforces 6-Month Gap on Price Hikes for Essential Goods

The UAE Ministry of Economy announced on Tuesday that the minimum period between two consecutive price increases for basic goods will be six months, starting next year.

The ministry also said that retailers in the country will not be able to increase the prices of nine basic consumer goods without prior approval in order to protect consumers and increase competition.

The items include cooking oil, eggs, dairy products, rice, sugar, poultry, legumes, bread and wheat. The new changes will come into effect from January 2, 2025.

This is part of the new pricing policy for basic consumer goods and regulatory decisions, which is under three new cabinet decrees.

The pricing policy was previously introduced to monitor the prices of essential consumer goods.

According to the new ministerial decrees, the Ministry of Economy, along with local authorities, suppliers of essential consumer goods, retailers, digital merchants and consumers in the UAE, will be required to implement the new policy. The ministry has been given supervisory powers to ensure that all parties comply with the decisions.

According to the new policy, retail stores are required to display unit prices to promote transparency.

In addition to these nine basic consumer goods, which can only be increased with the ministry’s prior approval, these products include cleaning products and related items, said Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy. However, the remaining products in the country’s markets are subject to the laws on supply and demand and other market mechanisms.

The new policy and its regulatory decisions aim to monitor the supply and demand of essential consumer goods across all emirates of the UAE, protecting them from sudden disruptions caused by unforeseen circumstances or external economic changes.

Additionally, by outlawing monopoly behaviors, the legislation will safeguard market stability and product quality. Furthermore, it aims to create balance between suppliers, retailers, and online sellers to avoid any negative impacts on the competitiveness of the local market and the overall welfare of society.

Al Saleh claims that Ministerial Decision No. 246 aims to prevent arbitrary price increases and maintain the stability of the prices of specific goods.

The ministerial order states that distributors, retailers, and consumers have the right to object to any violations.

Ministerial Decision 245, the second Ministerial Decision of 2024, deals with the unit price of certain consumer goods.

It will promote transparency in product pricing and provide accurate information to consumers so that they can weigh their options and make educated judgments.

In addition, the decision also takes into account the unit price, rather than relying solely on the overall promotional prices currently in the market.

Transparency
The decision obliges retail stores to display a unit price for each product in a clear and understandable manner using standard unit measurements.

Moreover, it gives the Ministry and other competent authorities the right to monitor and ensure that retail stores and online merchants comply with the unit pricing model. It also allows consumers to file complaints against retail stores and online merchants that violate the provisions set out in this decision.

Third Ministerial Decision of 2024, Code of Conduct no. 247 promotes fairness and transparency in the major consumer goods industry by regulating contractual relationships between distributors and retailers.

This policy is established in the ethical standards and guidelines that all suppliers, retailers and consumers must follow.

Al Saleh says codes of conduct alone cannot resolve disputes between suppliers and retailers in the consumer goods sector.