On 20th January 2025, the UAE Cabinet issued Decision No. (3) of 2025 ("Decision"), which outlines the ratios and controls related to the implementation of Federal Decree-Law No. (36) of 2023 regulating competition.
This new Decision provides detailed criteria for determining a dominant market position and sets thresholds for economic concentration notifications. It offers a clear framework for regulating competition by defining dominant market positions and setting thresholds for economic concentration notifications.
The Decision aims mainly to ensure fair competition within the market and repeals Cabinet Decision No. (13) of 2016, which previously outlined the ratios and controls related to the implementation of Federal Law No. (4) of 2012 regulating competition and any other previous regulations that are inconsistent with its provisions.
According to Article (2) of the Decision, a dominant position is established when an establishment, either independently or jointly with other establishments, holds a market share exceeding forty percent (40%) of the total transactions in the relevant market. This criterion is based on Clause (A) of Item (2) of Article (6) of the Federal Decree-Law No. (36) of 2023 regulating competition.
The Decision further sets minimum thresholds for notification of economic concentration operations.Going forward, transactions classified as economic concentrations will require notification if they meet any of the criteria below:
- The total annual sales value of the concerned establishments in the relevant market within the UAE exceeds three hundred million dirhams (AED 300,000,000) during the last fiscal year.
- The total market share of the concerned establishments exceeds forty percent (40%) of the total transactions in the relevant market within the UAE during the last fiscal year.
The Minister of Economy is given the authority to issue necessary directions for the implementation of this decision.
The Decision will come into effect sixty (60) days from the day following its publication in the official gazette i.e. 1 April 2025.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
