Competition Law

Replaces the 2012 competition law: prohibits restrictive agreements such as price-fixing and market sharing, abuse of a dominant position and economic dependency, and requires prior notification to the Ministry of Economy of mergers and acquisitions that meet Cabinet-set thresholds, with fines from AED 100,000 up to 10% of annual UAE turnover and penalties for failure to notify.

Official title
Federal Decree-Law No. (36) of 2023 Regarding Regulating Competition
Arabic title
مرسوم بقانون اتحادي رقم (36) لسنة 2023 في شأن تنظيم المنافسة
Instrument
Federal Decree-Law No. 36 of 2023
Issued by
President of the UAE
Jurisdiction
UAE Federal
Dates
issued 28 September 2023 · in force 29 December 2023
Status
in force
Repeals
Federal Law No. 4 of 2012
Topics
Competition
Official source
uaelegislation.gov.ae · official text (PDF)
Verified
29 October 2026

Summary

Federal Decree-Law No. 36 of 2023 is the UAE Competition Law. Issued on 28 September 2023, it came into force three months after its publication (Article 40); the portal records 29 December 2023. Article 39 repeals Federal Law No. 4 of 2012 but kept its implementing regulations alive until replaced, which happened with Cabinet Resolution No. 59 of 2026. The thresholds that make the law bite are set by Cabinet Resolution No. 3 of 2025 and the fees by Cabinet Resolution No. 105 of 2026.

Article 3 applies the law to the economic activities of all undertakings in the State, to the exploitation of intellectual property and to conduct abroad that affects competition in the State. Article 4 carves out sectors whose own regulator holds competition powers and government-owned undertakings designated by resolution.

Articles 5 to 8 set the prohibitions: restrictive agreements such as price-fixing, bid-rigging, output limits, market sharing and barriers to entry (Article 5); abuse of a dominant position, including predatory selling, discriminatory terms, tying and refusal of access to essential facilities, with dominance presumed above the Cabinet's market-share threshold (Article 6); the same conduct towards dependent customers with no alternative supplier (Article 7); and predatory pricing far below cost intended to drive out or block a competitor (Article 8). Articles 9 and 10 allow exemptions on notification to the Ministry where the arrangement promotes economic development or benefits consumers without eliminating competition; the Minister decides within 90 days, extendable by 45, and silence is rejection.

Articles 12 to 15 are merger control. Undertakings must notify an economic concentration that meets the Cabinet's thresholds at least 90 days before completion; the Minister decides within 90 days of a complete application, extendable by 45 days; the parties may not complete during that period; silence is rejection; commitments may be offered within 30 days; and the outcome is approval, conditional approval, rejection or a finding that notification was not required. Articles 16 and 17 create the Competition Regulatory Committee.

The sanctions are in Articles 23 to 33. Breach of Articles 5 to 8 is fined at not less than AED 100,000 and up to 10% of the violator's annual sales in the State for the previous year, or AED 500,000 to AED 5,000,000 where sales cannot be computed (Article 24); failure to notify a concentration draws 2% to 10% of the relevant sales (Article 25); completing during the standstill, obstructing the Ministry or giving misleading information draws AED 50,000 to AED 500,000 (Articles 26 and 27); the court may close the undertaking for 3 to 6 months (Article 29); and the Minister may settle before prosecution for at least double the minimum fine (Article 33). Article 34 gives a grievance within 15 working days, decided within 30 days, with a court challenge within 30 days. Status: in force.

Who it applies to

Every undertaking carrying on economic activity in the UAE, whatever its legal form or place of incorporation, and foreign undertakings whose conduct affects competition in the State; parties to mergers, acquisitions and joint ventures that meet the notification thresholds; excluding sectors with their own competition regulator and government-owned undertakings designated by resolution.

Key provisions

Article 3Scope: economic activities of all undertakings in the State, exploitation of intellectual property rights, and conduct abroad that affects competition in the State.
Article 4Exclusions: sectors regulated by laws giving a sectoral regulator competition powers unless it refers the matter to the Ministry, and federal or emirate government-owned undertakings designated by resolution.
Article 5Prohibits restrictive agreements, including price-fixing, bid-rigging, limits on production or output, market sharing and barriers to market entry.
Article 6Prohibits abuse of a dominant position, such as predatory selling, discriminatory terms, tying and refusing access to essential facilities; dominance is presumed above the Cabinet's market-share threshold.
Article 8Prohibits predatory pricing far below production and marketing costs aimed at driving out or blocking a competitor; general price reductions and liquidation sales are allowed.
Article 9Exemption on notification to the Ministry where the arrangement promotes economic development or benefits consumers without eliminating competition; the Minister decides within 90 days, extendable by 45, and silence is rejection.
Article 12Undertakings must notify an economic concentration that meets the Cabinet's thresholds at least 90 days before completion.
Article 14The Minister decides within 90 days of a complete application, extendable by 45 days; the parties may not complete during review; commitments may be offered within 30 days; silence is rejection.
Article 24Breach of Articles 5 to 8: a fine of not less than AED 100,000 and not more than 10% of the violator's annual sales in the State for the previous year, or AED 500,000 to AED 5,000,000 where sales cannot be computed.
Article 25Failure to notify a concentration: 2% to 10% of the relevant sales or revenue, with the same fallback amounts.
Article 33The Minister may settle with the violator before prosecution against payment of at least double the minimum fine.
Article 34Grievance to the Minister or the relevant authority within 15 working days of notice, decided within 30 days; a dismissal, or silence, may be challenged in court within 30 days.

Obligations and deadlines

  • Notify the Ministry of Economy at least 90 days before completing a concentration that meets the thresholds, and do not complete until the decision.
  • Notify the Ministry of any agreement for which an exemption is sought before relying on it.
  • Provide the Ministry with the information it requests; withholding or misleading information is fined AED 50,000 to AED 500,000.
  • File any grievance within 15 working days of notice of the decision.

Penalties

AED 100,000 up to 10% of the previous year's UAE sales for restrictive agreements, abuse of dominance, economic dependency or predatory pricing, or AED 500,000 to AED 5,000,000 where sales cannot be computed (Article 24); 2% to 10% of relevant sales for failing to notify a concentration (Article 25); AED 50,000 to AED 500,000 for completing during review or obstructing the Ministry (Articles 26 and 27); AED 50,000 to AED 200,000 for breach of confidentiality (Article 28); closure for 3 to 6 months and publication of the judgment (Article 29); settlement at double the minimum fine (Article 33).

In practice — how Polaris handles it

Since the thresholds were set in 2025 this law has become a standing item in our transaction work. For every acquisition, merger or joint venture we document, we test the parties against the AED 300,000,000 combined-sales and 40% market-share tests and, where either is met, build a 90-day pre-completion notification and the Ministry's 90-plus-45-day review into the timetable, with completion conditional on clearance; the fine for closing early is AED 50,000 to AED 500,000 and the fine for not notifying at all runs to 10% of sales. For clients with exclusive distribution, franchise or non-compete arrangements we review them against Article 5 and use the Article 9 exemption route where the arrangement can be justified rather than leave it unexamined. Clients that dominate a niche are told that refusal to supply, discriminatory pricing and tying are now sanctionable. Where a problem already exists we advise on the Article 33 settlement, which closes the matter before prosecution.

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Source and verification. This page was written from the official text published at uaelegislation.gov.ae, read on 29 October 2026. Quoted from that text: “not more than (10%) ten percent of the annual total sales realized by the violating undertaking in the State”
This summary is published for general information by Polaris Corporate Services FZ-LLC, a licensed Trust and Corporate Service Provider. It is not legal advice and does not replace the official text, which prevails in case of difference. Arabic is the authoritative language of UAE federal and emirate legislation; English translations are provided by the issuing authorities. Instruments change: check the status and the official source before relying on this page.

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