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The UAE’s Ministry of Economy on Tuesday announced a minimum time period of six months between two consecutive increases in prices of basic commodities from next year.
The ministry also said retailers in the country cannot increase prices of nine basic consumer goods without prior approval, in order to protect consumers and enhance competition.
The items includes cooking oil, eggs, dairy products, rice, sugar, poultry, legumes, bread and wheat. The new changes will be effective January 2, 2025.
This is part of a new pricing policy for basic consumer goods and regulatory decisions which fall under three new ministerial decrees.
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The pricing policy was earlier 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 the UAE’s consumers are required to implement the new policy. The Ministry has been given supervisory powers to ensure that all parties comply with the decisions.
Under the new policy, retail stores are required to display unit prices to promote transparency.
In addition to these nine basic consumer goods, Abdullah Ahmed Al Saleh, undersecretary of the Ministry of Economy, said that these goods also include some related items, along with prices for cleaning products, which can only be raised with prior approval from the Ministry. However, the remaining products in the country’s markets are subject to rules regarding supply and demand, and other market mechanisms.
The new policy and its regulating decisions aim to monitor the supply and demand of essential consumer goods across all the UAE’s emirates, safeguarding them from sudden disruptions caused by unforeseen circumstances or external economic changes.
Moreover, the policy will also limit monopolistic practices, and maintain market stability and product quality. It also seeks to establish a balance among suppliers, retailers, and online merchants, preventing any detrimental effects on the local market's competitiveness and well-being of the community.
Al Saleh elaborated that the Ministerial Decision No. 246 aims to maintain the stability of prices for these goods and prevent arbitrary increases in prices.
The ministerial decision further grants consumers, suppliers, and retailers the right to file complaints against any violations.
The second Ministerial Decision No. 245 of 2024 which focuses on the unit price of certain consumer goods will promote transparency in the pricing of goods and provide consumers with accurate information to assist users in making informed decisions that allow for effective comparison between various alternatives.
Additionally, the decision also takes into account unit price rather than solely relying on overall promotional prices currently in the market.
This decision also mandates retail stores to display the prices per unit in a clear and understandable manner using standardised units of measurement for each product.
Moreover, it gives the Ministry and other competent authorities the right to monitor and ensure that both retail stores and online merchants comply with the unit pricing model. It also allows consumers to file complaints against retail stores and online merchants who violate the provisions outlined in this decision.
The third Ministerial Decision No. 247 of 2024 concerning the Code of Conduct regulates the contractual relationship between suppliers and retailers and promote integrity and transparency within the essential consumer goods sector.
This guideline is based on ethical principles and regulations that all suppliers, retailers, and consumers must follow.
Al Saleh explained that the Code of Conduct cannot be the sole basis for resolving disagreements between retailers and suppliers in the consumer goods sect
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