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Competition Law in Dubai

Competition Law in Dubai

The Federal Law no.4/2012 comprises the Competition Law for companies in the UAE, including Dubai, and was revised in 2016. This set of laws oversees the activities of enterprises in this country, in order for them to act in a fair manner on the market. All business entities must observe the Competition Law in Dubai, but for a comprehensive understanding of these rules, please address your inquiries to our lawyers in Dubai. Also, our team of advisors can help entrepreneurs set up their operations through varied types of business entities in Dubai.

The provisions of the Competition Law in Dubai

The business market in the UAE is extremely competitive and offers a proper climate for all foreign entrepreneurs willing to enlarge their operations in the Arabian territory. In this direction, the rules regarding the competition in the market must be considered. One should know that the Competition Law comprises three main features:

• the restriction on anti-competitive agreements;

• restrictions on manners of companies holding leading market status;

• obligations which unite entities with a sufficiently large combined market share;

The Competition Law in Dubai focuses on small and medium companies, but should also be respected by foreign corporations with registered activities in the UAE. The main functions of the Competition Law and how they are seen on the market may be explained by our Dubai attorneys.

Which are the main functions of the Competition Law in Dubai?

Preventing the unfair competition in Dubai’s market represents the main attribute of the Competition Law which must be considered by entrepreneurs in the UAE. We direct your attention to the following aspects comprised by this set of laws:

• the dominant position restriction which limits the resale prices on retailers;

• the cartel restrictions where the anti-competitive behaviors are prohibited;  

• merger clearance before any acquisition is made, in order to respect the competition in the market;

• the concerned market observes the commodities and/or services which can be replaced or substituted in accordance with the prices to accomplish certain needs on the market.

If you want to understand the Competition Law and the applicable provisions for small and medium companies, we suggest you contact our law firm in Dubai.