New UAE Ministry of Economy rules enter a consumer and market stabilization initiatives by having at least a six-month gap of consecutive price hikes for nine main items of basic consumer goods. It takes effect the following year, on January 2, 2025, where retailers will not be allowed to increase prices of these goods except with prior approval from the Ministry of Economy New Control.
The announcement is part of a greater plan to monitor commodity prices and guarantee they remain in everyone’s reach. The nine affected goods are:
- Cooking oil
- Eggs
- Dairy products
- Rice
- Sugar
- Poultry
- Legumes
- Bread
- Wheat
Apart from these, the policy has relevance to goods regarded as accessories to these products, cleaning materials would also meet the requirements. This new policy will be implemented by the Ministry of Economy in conjunction with local authorities, suppliers, retail stores, digital merchants, and consumers. It further obliges retail stores to show prices and may use other means to improve awareness among consumers regarding purchasing decisions.
The new policy should eliminate sudden price hikes during sudden developments or changes in the external environment that can price consumers out of the market, thus preventing a monopoly scenario as well as safeguarding safe competitive conditions. It further promotes equality among sellers, especially those who sell their products through online stores.
The policy includes three main keys of the ministerial decrees:
- Ministerial Decision No. 246 states that guarantees price stability and hinders arbitrary price increments.
- Ministerial Decision No. 245 states that demands all prices to be displayed in units so that consumers gain good and consistent consumer information.
- Ministerial Decision No. 247 develops a Code of Conduct for the relationships of suppliers and retailers towards ethical ways of doing business.
The Ministry of Economy also urges consumers to report any violation to ensure compliance and fairness in the whole market.
