Ministry Of Economy Introduces New Pricing Policy For Nine Essential Consumer Goods In UAE

The Ministry of Economy recently detailed a new pricing policy for essential consumer goods in the UAE. This initiative includes three ministerial decrees aimed at regulating prices, enhancing consumer protection, and ensuring market stability. The changes will be implemented on 2nd January 2025. Abdullah Ahmed Al Saleh highlighted the UAE's commitment to economic policies that enhance consumer protection and provide a stable environment.

Al Saleh emphasised that these decrees align with the 'We the UAE 2031' vision, aiming to improve living standards and boost the national economy's competitiveness. The new regulations complement previous legislative efforts, including amendments to the Consumer Protection Law and rules for pricing consumer goods. The policy focuses on nine essential items like cooking oil, eggs, and dairy.

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The policy prioritises essential goods such as rice, sugar, poultry, legumes, bread, and wheat. It also covers related items and cleaning products, whose prices can only increase with Ministry approval. Other products follow supply-demand rules. This approach aims to prevent sudden disruptions due to unforeseen circumstances or external economic changes by improving government oversight.

Moreover, the policy seeks to curb monopolistic practices while maintaining market stability and product quality. It aims to balance relationships among suppliers, retailers, and online merchants to protect local market competitiveness and community well-being. Transparency in product pricing is also a key focus.

Al Saleh elaborated on Ministerial Decision No. 246 of 2024 concerning price monitoring of essential goods. This decision prevents arbitrary price hikes by forming a team to monitor price changes in coordination with relevant authorities. Price increases require prior Ministry approval and must adhere to a minimum six-month interval between consecutive hikes.

The decision empowers consumers, suppliers, and retailers to file complaints against violations. The Supreme Committee for Consumer Protection can suggest inquiries into breaches upon request from the Ministry or other authorities.

Unit Pricing Transparency

The second decision, Ministerial Decision No. 245 of 2024, focuses on unit pricing transparency for certain goods. It mandates retail stores and online merchants over 1,000 square meters display unit prices clearly using standardised measurements. This aims to help consumers make informed choices by comparing alternatives effectively.

The Ministry and competent authorities have the right to ensure compliance with this model. Consumers can report violations by retail stores or online merchants regarding unit pricing provisions.

Code of Conduct in Consumer Goods Sector

Ministerial Decision No. 247 of 2024 introduces a Code of Conduct for suppliers and retailers in the consumer goods sector. This guideline promotes integrity and transparency based on ethical principles that all parties must follow rigorously.

Al Saleh noted that this Code cannot solely resolve disputes between retailers and suppliers but is crucial for successful pricing policy implementation.

The Ministry reaffirms its commitment to collaborating with relevant authorities for effective policy execution. The goal is market stability, consumer rights protection, and achieving leadership's vision for a sustainable economy based on transparency and fair competition.

This announcement underscores mindful purchasing practices' importance and society's role in fostering sustainable consumption culture.

With inputs from WAM