Public Policy Document

The Pricing Policy for Essential Consumer Goods in the UAE was issued in 2022, reflecting the Ministry of Economy's commitment to ensuring fair practices through comprehensive monitoring and oversight of consumer goods prices. This policy aims to verify the legitimacy of any price increases and the associated rates, if any. The policy seeks to ensure that suppliers do not apply unjustified price hikes, enhance mechanisms to combat monopolistic practices, and promote sound commercial practices. This will establish a balanced and fair relationship between suppliers and consumers, ensuring the rights of all parties, enhancing market stability, and maintaining the continuous availability of goods without scarcity or disappearance from points of sale.

1. Ensure price stability of the most prominent basic consumer goods (cooking oils, eggs, dairy products, rice, sugar, poultry, legumes, bread, wheat), and prevent any unjustified price increases.
2. Balance the contractual relationship between the suppliers and the retail outlets with regards to these essential goods, ensuring that neither party exploits the other.
3. Ensure greater market flexibility, enhance confidence in the UAE’s retail sector, cultivate a sound consumer environment, and promote consumer awareness.
    

1. Approve “Liberalization of pricing” for consumer goods in the UAE.
2. Cancel prior approvals before hiking prices of consumer goods.
3. Monitor and Control pricing of consumer goods that are considered as necessities.
4. Create a list of basic consumer goods that are subject to price control by the Ministry and relevant government authorities in each emirate.
5. Prevent price increases of basic consumer goods by suppliers or retailers without prior approval from the Ministry of Economy and relevant government authorities in each emirate.
6. Establish a comprehensive system that regulates the relationship between suppliers of basic consumer goods and retailers.
    

1. Reducing the number of consumer goods subject to price movement control to 9 essential consumer goods.
2. Reduce the number of price increase requests for consumer goods, by virtue of the liberalization of pricing policy for consumer goods, and limit monitoring to basic consumer goods.
3. Reduce the cost of doing business for fast moving consumer goods suppliers, by restricting the average distributor markup applicable between suppliers and retailers and setting the maximum profit margin for suppliers of basic consumer goods or sales outlets.
4. Limit price increases of basic consumer goods in the UAE by enforcing prior monitoring and controls on any price increases by suppliers and retailers.
5. Rationalize prices of basic consumer goods in the UAE, in line with international tariffs and prices and based on the Food and Agriculture Organization of the United Nations Index; and ensure that the controlled profit margins or total costs of basic consumer goods at the retail outlet are reflected on sales prices, which means a decrease in the price of these goods.
    

Consumer Goods Sector, economic development departments, retail outlets and wholesalers, retailers, national factories, consumers.