Cooking oil, eggs, dairy, rice, sugar, chicken, legumes, bread, and wheat are among the nine fundamental consumer commodities that the UAE's Ministry of Economy forbade merchants and suppliers from raising their prices on Tuesday.

On january 2, 2025, the new pricing policy is expected to go into force.

The Ministry of Economy declared that two consecutive price hikes for essential necessities must be separated by at least six months.

The decrees prohibit retailers from raising the cost of these nine essential consumer commodities without first obtaining Ministry of Economy clearance.Along with offering customers the ability to report infractions, the ministerial decrees also give the ministry supervisory authority to make sure that everyone abides by the rulings.

In order to safeguard consumers, ensure market stability and product quality, and balance supply and demand for vital consumer goods throughout all uae emirates, the new policy and its regulating decisions aim to strengthen governmental control in determining the prices of necessary items.The recently announced ministerial decrees address the unit price of some consumer goods, the consumer goods sector's guidelines for conduct, which regulate the contractual relationship between suppliers and retailers in the marketplace, and the prices of essential consumer goods in order to protect consumers and ensure price stability. Retail stores are also required to display unit prices in order to promote transparency.

To explain the details of the recently implemented pricing strategy, which was first implemented to keep an eye on the costs of necessities, the Ministry of Economy hosted a news conference on Tuesday.

Three ministerial decrees are part of the policy, which aims to manage stakeholder relationships in the UAE's markets, improve the consumer protection system, ensure market stability, and regulate the new pricing framework.Undersecretary of the Ministry of Economy Abdullah ahmed Al Saleh emphasised how the uae has prioritised the development of economic policies and laws to strengthen the nation's consumer protection system and offer a stable and safe consumer environment in line with the best international practices, all under the direction of its astute leadership. According to the 'We the uae 2031' vision, this raises the standard of life for the populace and promotes the growth of the national economy, making it more competitive both domestically and globally.

On Tuesday, Abdullah ahmed Al Saleh addresses the media in Abu Dhabi.According to Al Saleh, the new ministerial decrees are a complement to earlier legislative initiatives, such as cabinet Resolution No. (120) of 2022 about the rules and regulations for pricing consumer goods and Federal Decree-Law No. (5) of 2023 about the amendment of the Consumer Protection Law and its executive regulations. Nine key consumer goods—cooking oil, eggs, dairy, rice, sugar, chicken, legumes, bread, and wheat—are given priority under the scheme, he said. Along with other related commodities, these goods also include cleaning product costs, which can only be raised with previous Ministry clearance. The rest of the products in the nation's marketplaces are governed by supply and demand regulations as well as other market mechanisms.In order to protect them against abrupt interruptions brought on by unanticipated events or external economic shifts, the new policy and its governing decisions seek to monitor the supply and demand of necessities throughout all of the UAE's emirates. In order to safeguard customers and provide product accessibility at reasonable rates, this is achieved by strengthening government oversight in setting these commodities' prices. In addition, the strategy seeks to preserve product quality, market stability, and monopolistic tactics. In order to avoid any negative effects on the competitiveness of the local market and the community's well-being, it also aims to create equilibrium among suppliers, retailers, and online merchants.

In a market that is competitive, the policy also aims to encourage truthful information and open product pricing.

The Pricing Policy Is Based on Three New Ministerial Decisions The Ministry of Economy, pertinent municipal authorities, producers of basic consumer products, shops, online merchants, and uae customers are all crucial to the effective execution of the new strategy, according to the most recent ministerial decrees.

Al Saleh gave more information about the three ministerial rulings that set the new policy's regulatory foundation. In order to preserve the stability of pricing for certain commodities and avoid capricious price spikes, the first rule is Ministerial Decision No. 246 of 2024 on monitoring prices of key consumer goods. In cooperation with the Ministry and other appropriate authorities, a team will be established to "monitor the prices of necessary consumer goods." The team's duties include keeping an eye on price changes for consumer goods, evaluating requests for price hikes, and researching complaints alleging that this decision has been broken.

The ruling further stipulates that price hikes cannot be made without the Ministry of Economy's prior approval and that price changes must be tracked with the Ministry's assistance, as well as that of economic development departments and other pertinent authorities. Additionally, it stipulates that, under certain circumstances and justifications, there must be a minimum of six months between two price hikes. Additionally, the ruling gives suppliers, retailers, and customers the ability to protest about any infractions. In addition, the ruling gives the supreme Committee for Consumer Protection the power to recommend that, upon request from the Ministry or another relevant entity, investigations be conducted into activities that contravene the ruling's terms.

"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," he mentioned in reference to the second decision. Furthermore, by taking into account each product's unit price rather than depending only on the market's aggregate promotional prices, the decision seeks to promote fair competition among products.Additionally, this ruling requires that retailers and internet retailers with spaces larger than 1,000 square meters clearly and understandably show the pricing per unit for each product using defined units of measurement. Additionally, it grants the Ministry and other appropriate authorities the authority to keep an eye on and guarantee that online retailers and physical retailers adhere to the unit price model. It also enables customers to lodge complaints against physical retailers and internet sellers who fail to abide by the rules set forth in this ruling.

Al Saleh continued by outlining the objectives of Ministerial Decision No. 247 of 2024 about the Code of Conduct in the consumer products industry, which is to govern the contractual arrangement between suppliers and retailers and encourage honesty and openness withinThe effectiveness of the pricing policy depends on this rule, which is founded on moral standards and laws that all vendors, merchants, and customers must strictly abide by. He added that disputes between suppliers and retailers in the consumer products industry cannot be settled only through the Code of Conduct.

In the most recent release, the Ministry of Economy reiterates its dedication to strengthening collaboration with pertinent agencies in order to ensure the implementation of the new policy. Promoting market stability, defending consumer rights, and realising the vision of the astute leadership in building a sustainable national economy based on openness and fair competition are the goals.Consequently, the Ministry emphasises the value of conscientious shopping and the part society plays in promoting a sustainable consumption culture.