UAE

Developing Framework

Federal Law No. 36/2023 on Commercial Competition

Authority: Ministry of Economy | Enforcement: Active

Overview

The UAE replaced its earlier 2012 competition law with Federal Law No. 36 of 2023, which substantially modernised the competition framework. The new law broadens the scope of prohibited anti-competitive conduct, introduces a formal merger control regime, and strengthens investigative powers of the Ministry of Economy. Enforcement is developing but gaining momentum, particularly in sectors such as telecommunications, aviation, and retail. The UAE also maintains separate competition frameworks within its financial free zones (DIFC and ADGM), which apply their own competition rules to entities operating within those zones.

14-Topic Competition Coverage

Competition Authority

Fully Addressed

The Ministry of Economy is the primary competition authority under the 2023 law, supported by a Competition Regulation Committee.

Anti-Competitive Agreements (Horizontal)

Fully Addressed

Horizontal agreements that restrict, prevent, or distort competition are prohibited, including price-fixing, market allocation, and bid-rigging.

Anti-Competitive Agreements (Vertical)

Fully Addressed

Vertical agreements such as resale price maintenance and exclusive dealing are prohibited where they appreciably restrict competition.

Abuse of Dominance

Fully Addressed

Abuse of a dominant position is prohibited, covering exploitative and exclusionary conduct including predatory pricing and tying.

Merger Control

Fully Addressed

The 2023 law introduced mandatory pre-merger notification for transactions meeting prescribed turnover thresholds.

Leniency Programme

Partially Addressed

The 2023 law provides for leniency but detailed implementing regulations and guidelines are still being developed.

Settlement & Commitment

Partially Addressed

The Ministry may accept commitments to resolve competition concerns, though formal settlement procedures are not yet fully codified.

Penalties & Sanctions

Fully Addressed

Fines of up to 10% of annual revenue for the relevant product. The 2023 law significantly increased penalty levels from the prior regime.

Digital Markets Regulation

Not Addressed

No specific digital markets regulation. General competition rules apply to digital platforms.

Sector Regulators

Fully Addressed

The Telecommunications and Digital Government Regulatory Authority (TDRA) and General Civil Aviation Authority exercise concurrent competition oversight in their sectors.

Dawn Raids & Investigations

Fully Addressed

The Ministry has enhanced investigation powers under the 2023 law, including the ability to conduct on-site inspections and seize evidence.

Private Enforcement

Partially Addressed

Injured parties may seek damages through the courts, but private competition litigation remains uncommon.

International Cooperation

Partially Addressed

The Ministry cooperates with regional and international competition bodies on an ad hoc basis. No formal cooperation agreements publicly disclosed.