Ministry warns retailers not to hike prices of 9 basic food items in UAE

Staff Reporter, Gulf Today

The UAE’s Ministry of Economy on Tuesday prohibited the retailers and suppliers from hiking prices of nine basic consumer goods — cooking oil, eggs, dairy, rice, sugar, poultry, legumes, bread, and wheat — in the country. The new pricing policy is scheduled to take effect on Jan.2, 2025.

The Ministry of Economy announced a minimum period of six months is needed between two consecutive increases in prices of these basic goods.

Retailers cannot increase prices of these nine basic consumer goods without prior approval from the Ministry of Economy, according to the decrees.  

The ministerial decrees also grant the ministry supervisory powers to ensure that all parties comply with the decisions, while also giving consumers the right to file complaints against violators.

The new policy and its regulating decisions are intended to improve governmental oversight in setting the prices of essential goods to protect consumers, guarantee market stability and product quality, and balance supply and demand for essential consumer goods across all emirates in the UAE.

The newly announced ministerial decrees focus on prices for essential consumer goods to ensure price stability and protect consumers, the unit price of certain consumer goods, requiring retail stores to display unit prices to promote transparency, and the consumer goods sector's guidelines for conduct, which governs the contractual relationship between suppliers and retailers in the marketplace.

The Ministry of Economy held a press briefing on Tuesday to outline the specifics of the new pricing policy that was previously introduced to monitor the pricing of essential consumer goods.

The policy includes three ministerial decrees aimed at regulating the new pricing framework, enhancing the consumer protection system, ensuring market stability, and managing stakeholder relationships in the UAE's markets.

Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy, underscored how the UAE, guided by the vision of its wise leadership, has placed a strong emphasis on developing economic policies and legislation to enhance the consumer protection system in the country, and provide a safe and stable consumer environment in accordance with the best global practices. In keeping with the ‘We the UAE 2031’ vision, this enhances the standard of living for citizens and supports the expansion of the national economy, while enhancing its competitiveness both regionally and internationally.

Abdullah Ahmed Al Saleh speaks to the media in Abu Dhabi on Tuesday.

Al Saleh explained that the new ministerial decrees complement the previous legislative efforts, notably Federal Decree-Law No. (5) of 2023 concerning the amendment of the Consumer Protection Law and its executive regulations, and Cabinet Resolution No. (120) of 2022 regarding the rules and regulations for pricing consumer goods. He stated that the policy prioritises nine essential consumer goods, including cooking oil, eggs, dairy, rice, sugar, poultry, legumes, bread, and wheat. These goods also include some related items, along with prices for cleaning products, which can only be raised with prior approval from the Ministry, while 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. This is accomplished by improving government oversight in determining the prices of these goods, with the goal of protecting consumers and enhancing product accessibility at fair prices. Moreover, the policy also aims to 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. Additionally, the policy intends to promote accurate information and transparent product pricing in a competitive market.

Three New Ministerial Decisions Form the Basis of the Pricing Policy According to the latest ministerial decrees, the Ministry of Economy, relevant local authorities, suppliers of essential consumer goods, retailers, digital merchants, and the UAE’s consumers are all instrumental in the successful implementation of the new policy.

Al Saleh provided further details on the three ministerial decisions that establish the regulatory framework for the new policy. The first ruling is the Ministerial Decision No. 246 of 2024 on monitoring prices of essential consumer goods, which aims to maintain the stability of prices for these goods and prevent arbitrary increases in prices. This will be accomplished by forming a team to ‘monitor the prices of necessary consumer goods,’ in coordination with the Ministry and other competent authorities. The team's responsibilities include monitoring changes in consumer goods prices, reviewing requests for price increases, and studying complaints against violations of this decision.

The decision also includes provisions prohibiting price increases without prior approvals from the Ministry of Economy, as well as price fluctuations being monitored with the cooperation of the Ministry, economic development departments, and other relevant authorities. It also establishes a minimum timeframe of six months between two consecutive price increases, based on specified reasons and conditions. The decision further grants consumers, suppliers, and retailers the right to file complaints against any violations. Furthermore, the decision grants the Supreme Committee for Consumer Protection the authority to suggest initiating enquiries into actions that violate the provisions outlined in this decision, upon request from the Ministry or other appropriate authority.

Regarding the second decision, he said, “The Ministerial Decision No. 245 of 2024 concerning the unit price of certain consumer goods aims to 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 aims to foster fair competition among products by considering their unit price rather than solely relying on overall promotional prices currently in the market.”

This decision further mandates both retail stores and online merchants with premises exceeding 1,000 square meters 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. Additionally, it allows consumers to file complaints against retail stores and online merchants who violate the provisions outlined in this decision.

Al Saleh went on to explain how the Ministerial Decision No. 247 of 2024 concerning the Code of Conduct in the consumer goods sector aims to regulate the contractual relationship between suppliers and retailers and promote integrity and transparency within the essential consumer goods sector. This guideline, which is based on ethical principles and regulations that all suppliers, retailers, and consumers must rigorously follow, is essential to the success of the pricing policy. He also noted that the Code of Conduct cannot be the sole basis for resolving disagreements between retailers and suppliers in the consumer goods sector.

Through the latest announcement, the Ministry of Economy reaffirms its commitment to enhancing cooperation with relevant authorities to guarantee the execution of the new policy. The objective is to promote market stability, protect consumer rights, and realise the vision of the wise leadership in establishing a sustainable national economy founded on transparency and fair competition. As a result, the Ministry reinforces the importance of mindful purchasing practices and the role that society plays in fostering a culture of sustainable consumption.