Introduction
The United Arab Emirates has taken another major step toward strengthening market regulation and fair competition through the issuance of Cabinet Resolution No. 59 of 2025 concerning the Executive Regulations of Federal Decree Law No. 36 of 2023 on the Regulation of Competition.
The Resolution was officially published in the UAE Official Gazette on 20 April 2026 and introduces a comprehensive regulatory framework governing anti-competitive practices, economic concentration transactions, merger control procedures, exemptions, investigations, complaints, and regulatory enforcement mechanisms within the UAE.
The Resolution reflects the UAE’s continued efforts to align its competition regime with international best practices while promoting economic efficiency, market transparency, investor confidence, and consumer protection.
Legislative Background
Cabinet Resolution No. 59 of 2025 was issued pursuant to Federal Decree Law No. 36 of 2023 concerning the Regulation of Competition. The Resolution also references Cabinet Resolution No. 37 of 2014 relating to the previous executive regulations issued under Federal Law No. 4 of 2012, which has now been repealed and replaced by the updated competition framework.
The Resolution establishes detailed executive procedures for implementing the UAE Competition Law and grants broad powers to the Ministry of Economy and relevant authorities to supervise anti-competitive conduct and economic concentration activities.
Objectives of the Competition Framework
The Resolution aims to:
- Protect and enhance competition in the UAE market;
- Prevent monopolistic and anti-competitive practices;
- Promote economic efficiency;
- Encourage innovation and investment;
- Safeguard consumer interests;
- Ensure fair pricing and market access.
Importantly, the Resolution emphasizes that competition policy must support sustainable economic development and maintain balanced market conditions across different sectors.
Definition of Economic Concentration
One of the central aspects of the Resolution concerns the regulation of “economic concentration” transactions.
Economic concentration broadly includes:
- Mergers;
- Acquisitions;
- Transfers of assets;
- Establishment of joint ventures;
- Any transaction resulting in direct or indirect control over another undertaking.
The Resolution applies where such transactions may substantially affect competition within the UAE market.
Assessment of Dominance and Market Position
The Resolution sets out detailed criteria for evaluating market dominance and the effect of economic concentration transactions.
The authorities may consider factors including:
- Market share;
- Market structure;
- Number of competitors;
- Barriers to entry;
- Consumer impact;
- Pricing power;
- Supply chain control;
- Technological capabilities;
- Access to distribution networks;
- Economic influence over the relevant market.
The framework further requires analysis of whether a transaction may:
- Restrict competition;
- Reduce consumer choice;
- Increase prices;
- Facilitate monopolistic conduct;
- Prevent new market entrants;
- Create unfair market dominance.
Anti-Competitive Agreements and Practices
The Resolution regulates agreements and practices that may distort or restrict competition within the UAE market.
Examples include:
- Price fixing arrangements;
- Market allocation agreements;
- Output restrictions;
- Bid rigging;
- Abuse of dominant position;
- Coordinated conduct between competitors;
- Practices aimed at excluding competitors from the market.
The Resolution authorizes the Ministry of Economy and the relevant authorities to investigate suspected anti-competitive behavior and to require extensive documentation and disclosures from market participants.
Merger Control and Economic Concentration Notifications
A major feature of the Resolution is the introduction of detailed merger control procedures.
Parties involved in economic concentration transactions are required to submit applications and notifications to the Ministry of Economy prior to completing transactions that exceed prescribed thresholds.
The application must include extensive information, including:
- Details of the transaction structure;
- Corporate ownership information;
- Financial statements;
- Market share analysis;
- Competitive impact assessments;
- Information concerning related markets and competitors;
- Supporting legal and commercial documents.
The Resolution further permits the Ministry to request additional information, documents, and clarifications during the review process.
Review and Investigation Procedures
The Resolution establishes detailed procedures for reviewing economic concentration applications.
The Ministry and relevant authorities may:
- Conduct market studies;
- Seek input from competitors and consumers;
- Request expert reports;
- Assess pricing effects;
- Evaluate barriers to competition;
- Review vertical and horizontal market impacts.
The authorities are also empowered to initiate investigations into suspected anti-competitive conduct and may coordinate with sectoral regulators and governmental authorities.
Exemptions and Conditional Approvals
The Resolution permits certain exemptions and conditional approvals where transactions generate economic benefits outweighing potential anti-competitive effects.
Factors considered may include:
- Technological advancement;
- Increased efficiency;
- Improvement of production or distribution;
- Consumer benefits;
- Enhancement of competitiveness within the UAE economy.
Authorities may impose conditions, obligations, or remedies as part of approval decisions to mitigate competition concerns.
Complaints and Enforcement Mechanisms
The Resolution establishes formal complaint mechanisms allowing affected parties to submit complaints concerning anti-competitive conduct or competition violations.
Complaints may relate to:
- Abuse of dominance;
- Restrictive agreements;
- Monopolistic behavior;
- Anti-competitive mergers;
- Market manipulation practices.
The authorities may conduct inspections, investigations, evidence reviews, and hearings in connection with such complaints.
The Resolution further provides procedures governing:
- Submission of evidence;
- Investigation reports;
- Notification of parties;
- Responses and defenses;
- Administrative review procedures.
Confidentiality and Data Protection
The Resolution places significant emphasis on confidentiality obligations.
Parties submitting information during investigations or merger reviews are protected through confidentiality mechanisms governing commercially sensitive information, trade secrets, financial data, and strategic market information.
At the same time, parties are required to cooperate fully with regulatory authorities and provide accurate and complete information.
Regulatory Powers and Penalties
The Resolution grants extensive supervisory powers to the Ministry of Economy and other competent authorities.
Authorities may:
- Conduct investigations;
- Request documents;
- Review transactions;
- Suspend or prohibit transactions;
- Impose corrective measures;
- Refer violations for further enforcement action.
Failure to comply with the Competition Law and Executive Regulations may result in administrative sanctions, penalties, or other enforcement measures under the applicable legislation.
Repeal of Previous Framework
Article 32 of the Resolution expressly repeals Cabinet Resolution No. 37 of 2014 concerning the previous executive regulations issued under the former competition law framework.
This confirms the UAE’s transition toward a more advanced and modernized competition regime.
Effective Date
Article 33 of Cabinet Resolution No. 59 of 2025 provides that the Resolution entered into force from the date of publication in the Official Gazette, namely 20 April 2026.
Conclusion
Cabinet Resolution No. 59 of 2025 represents a major development in the UAE’s competition and antitrust regulatory framework. The Resolution establishes a sophisticated legal structure governing economic concentration transactions, anti-competitive practices, merger control procedures, market investigations, and regulatory enforcement.
The framework significantly enhances the UAE’s ability to regulate competition and aligns the country more closely with international antitrust standards adopted in major global jurisdictions.
Businesses operating in the UAE — particularly large corporate groups, investors, financial institutions, private equity firms, and multinational companies — should carefully assess the implications of the new competition regime and ensure compliance with notification requirements, merger control obligations, and anti-competitive conduct restrictions.
The Resolution also underscores the UAE’s continued commitment to promoting fair competition, protecting consumers, and fostering a transparent and competitive economic environment attractive to both domestic and international investors.
If you require further clarification or legal assistance concerning the matters discussed in this article, please do not hesitate to contact Kh legal Advocates & Legal Consultants LLC. Our lawyers would be happy to assist you.
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