Due to frequent changes in the laws and the fact that a small mistake may attract heavy penalties, delays, and investigations, many enterprises in the UAE feel uncertain about the rules for competition. 

Any company planning to carry out a merger, acquisition, pricing changes, or entry into a new market are often concerned about whether they require approval from the Ministry of Economy, if their agreements are permissible, or whether their market position could be considered “dominant” under the latest UAE competition laws.

RH & Hale Lawyers eases this problem and provides you with reliable and practical advice according to the most recent UAE competition rules, including Federal Decree-Law No. 36 of 2023 and the most recent Cabinet Decisions. We explain everything in clear terms, assess your risks, file all necessary documents, and guide you through the process so that you can safely grow your business.

What Is Competition Law in the UAE?

The Federal Decree-Law No. 36 of 2023 on the Regulation of Competition (the “New Competition Law”) remains the principal rules governing competition between businesses, now fully in force and being implemented in accordance with the Implementing Regulations as laid down in Cabinet Decision No. 59 of 2026.

This UAE government is focusing on three (3) areas of unfair competition in order to enforce this new law and thus, develop the market and enable competition between enterprises.

• Restrictive Agreements: Any secret agreement with your competitor to fix the price of the goods or services, or to split up or limit the market is prohibited in the UAE.

• Abuse of a Dominant Position: Any big company with enormous market power is not allowed to abuse its position by crushing or excluding competitors, or by treating customers unfavorably.

• Economic Concentrations (Mergers & Acquisitions): Any proposed merger or acquisition will only be permitted after obtaining government approval (if it is of a sufficiently large scale). 

Important Update: Under the current regulations, merger control in the UAE is both mandatory and suspensory. This means that if your business transaction meets specified size thresholds, the deal cannot be closed or actually completed until you obtain official permission from the Ministry of Economy.

Key Prohibited Practices Under UAE Competition Law

UAE law prohibits a range of anti-competitive activities, including the main ones listed below.

1. Anti-Competitive Agreements UAE

Companies must not enter into agreements which prevent or restrain competition. Examples of common anti-competitive agreements are:

• Fixing prices for goods or services.

• Dividing markets, customers, or territories.

• Bid rigging in tenders.

• Limiting production or sales.

• Agreeing not to deal with certain companies.

These rules cover formal contracts and informal understandings. Violating them can lead to serious penalties.

2. Abuse of Dominant Position UAE

A company with strong market power must not misuse it. This is called abuse of a dominant position. 

A dominant position shall be deemed to exist when the market share of any establishment, whether independently or jointly with other establishments, exceeds forty percent (40%) of the total transactions in the Relevant Market.

However, under the 2026 Executive Regulations (Cabinet Decision No. 59 of 2026), dominance is assessed using a broader range of qualitative factors (such as barriers to entry, financial resources, and ability to influence the market). This means that undertakings below 40% may still be considered dominant in some cases, and those above 40% are not automatically dominant without further analysis.

Actions that are prohibited include:

• Unfair or very low prices (predatory pricing).

• Discriminating against similar customers.

• Refusing to supply without reason.

• Forcing buyers to purchase extra products (tying).

• Limiting access to important facilities.

The 2026 Executive Regulations provide more details on how dominance is assessed using these additional factors.

3. Economic Concentrations and Merger Control UAE

The UAE has a full merger control system. Certain mergers, acquisitions, or joint ventures need approval before closing if they could affect competition. 

Current Notification thresholds (as of Cabinet Resolution No. 3 of 2025):

1. Where the total annual sales value of the concerned establishments in the Relevant Market within the State exceeds three hundred million dirhams (AED 300,000,000) during the last Fiscal Year; or

2. Where the total market share of the concerned establishments exceeds forty percent (40%) of the total transactions in the Relevant Market within the UAE during the last Fiscal Year.

The Ministry should be notified in advance. The Executive Regulations (Cabinet Decision No. 59 of 2026) determine the procedures, timeframes and requirements. These regulations take effect on 30 July 2026 and bring clearer procedures.

Latest Updates on UAE Competition Law 

Cabinet Decision No. 59 of 2026 is the new Executive Regulation to the 2023 Competition Law and covers: 

• Merger review procedures, Dominance assessments, Complaints and investigations, Exemptions, and third‑party participation.

• More emphasis on consumer protection and market efficiency.

• Updated penalties: Fines may go up to 10% of annual turnover in serious cases.

• Improved procedures for third parties to participate in reviews.

You get expert advice from RH & Hale’s competition lawyers who keep a close eye on all official changes from the Ministry and Cabinet.

How RH & Hale Lawyers Can Help With Competition Issues

As your commercial legal partner in the UAE, RH & Hale helps you manage risks associated with market competition safely. We protect your business and provide simple and easy to understand legal solutions that keep your business safe. We translate complex regulations into simple, clear, actionable solutions. 

Our key services include:

• UAE Competition Law Compliance: We conduct a complete audit of your contracts, policies, and practices. 

• Merger Due Diligence: We analyze your sales volumes and market shares to inform you whether your merger will attract mandatory government notifications. 

• Government Filings: We prepare the official economic reports and handle the government’s online filing process with the Ministry of Economy to secure a final decision. 

• Contract Drafting and Due Diligence: We review your distribution agreements, franchise agreements and pricing policies to help you avoid unintentional violations of restrictive agreements. 

• Antitrust Litigation and Defence: If you are suspect of anti-competitive behavior by a competitor or if you want to file a lawsuit against a competitor who is acting inappropriately towards your business, we will defend your business before the authorities.

We serve clients in all sectors throughout the UAE and give simple, easy to understand solutions that work in your business.

Why Choose RH & Hale for UAE Antitrust and Competition Matters?

• Years of practical experience with UAE laws and real business challenges

• Our competition lawyers in Dubai have experience in advising clients on notification and compliance issues

• We follow a Client-centric approach – we listen, explain clearly and advise on your desired outcomes.

• Our lawyers have the ability to adhere to professional standards and stay current on developments.

Businesses trust us because we help our clients compete successfully and fairly, and without unnecessary cost. Call RH & HALE Lawyers today for a consultation. Let us help you understand competition law UAE, merger control and all other matters with confidence.