UAE plans to scrap monopolies of some massive service provider households


© Reuters. FILE PHOTO: A general view of JBR from Bluewaters Island in Dubai, United Arab Emirates, Dec 08, 2021. REUTERS / Satish Kumar

(Reuters) – The UAE government has told some of its largest business families that it wants to end their monopolies on the sale of imported goods, the Financial Times reported on Sunday.

The government did not immediately respond to Reuters’ request for comment, but state news agency WAM cited a statement from the Department of Commerce saying that a bill on trade agencies is still in the legislative cycle and “too early for details.”

The cabinet referred the draft to the Federal National Council for discussion and possibly other changes, it added.

The FT report said the proposed legislation would end the automatic renewal of existing agency agreements in the Gulf State, which would allow foreign firms to sell their own goods or switch local agents.

“It no longer makes sense for individual families to have such power and preferential access to easy wealth,” the report quoted an Emirati official as saying. “We have to modernize our economy.”

The proposed law has to be approved by the Emirati leadership and the timing of it remains uncertain, the report added.

Over the past year, the UAE, a growing economic rival of Saudi Arabia, took steps to make its economy more attractive to foreign investors and talent.

Earlier this year, the UAE said that foreigners opening a business would no longer need an Emirati shareholder or agent after the UAE company law was changed.

Disclaimer: Fusion Media would like to remind you that the information contained on this website is not necessarily real or accurate. All CFDs (stocks, indices, futures) and forex prices are not provided by exchanges, but by market makers. Therefore, prices may not be accurate and may differ from the actual market price, which means that prices are indicative and not suitable for trading purposes. Therefore, Fusion Media is not responsible for any trading losses you may incur as a result of using this data.

Fusion Media, or anyone involved in Fusion Media, assumes no liability for any loss or damage arising out of reliance on the information contained on this website, including data, prices, charts, and buy / sell signals. Please inform yourself comprehensively about the risks and costs associated with trading in the financial markets, as it is one of the riskiest forms of investment.

You might also like

Leave A Reply

Your email address will not be published.