The Ministry of Economy adopts a pricing policy prohibiting UAE retailers from increasing the prices of 9 basic consumer goods.
The UAE Cabinet has recently adopted a new pricing policy where sales outlets are prohibited from prices without consent from the ministry. The policy was declared on Sunday, November 13, 2022, when the Vice President and Priminister of the UAE, Sheikh Mohammed bin Rashid Al Maktoum, chaired a Cabinet meeting.
The commodities included in this policy are:
- cooking oils
According to the government, however, this is not a conclusive list, and more products can be added to the list “according to price developments.” The new policy is meant to ensure the development of fair mechanisms and efficiency in procedures in order to adequately coordinate the movement of goods among suppliers and consumers of such necessary goods.
On their Twitter account, the UAE Media Government declared, “The Cabinet, headed by His Highness Sheikh Mohammed bin Rashid Al Maktoum, approves the holding of the annual meetings of the UAE government, November 23-22, and new policies for pricing the prices of basic consumer goods in the country.”
It appears that this is not the first measure taken by the Ministry of Economy to keep increasing prices of basic consumer goods in check. Earlier this year in April, the ministry approved a policy, accommodating over 11,000 different necessity goods, which ensured that an increase in prices of goods, such as bread and wheat by sales outlets due to spiraling importing costs, required prior approval by the authorities. The ministry also declared that any violation of these policies risks exposure of the owner to legal consequences.
The support of the UAE government, towards the locals, however, ceases to subside as, despite the pricing policy, the Cabinet support towards local vendors is highlighted through the changes implemented within the customs exemption policy. The policy ensures that only those commodities not available in the UAE will be exempt from customs duties.
Sheikh Mohammad expressed his support for the evolving policies in his tweet:
“The goal is to encourage factories to use locally produced materials to support them”
Such decisions about the coordination of the requirements and standards of companies through supervisory committees were established in accordance with Islamic Shariah. The companies themselves require approval of the internal Shariah Supervisory committees before beginning their respective activities.