UAE Plans to Cancel Monopolies of Some Family Businesses: Report

Published December 26th, 2021 - 08:19 GMT
UAE Plans to Cancel Monopolies of Some Family Businesses: Report
A law is projected to be approved by the Emirati leadership. (Shutterstock)

The United Arab Emirates government has informed some of its biggest family businesses that it intends to remove their monopolies on the sale of imported goods, the Financial Times (FT) reported.

According to FT, the UAE government has proposed legislation ending the automatic renewal of existing commercial agency agreements, providing foreign companies the chance to distribute their own goods or change their local agent on contract expiry.

A law is projected to be approved by the Emirati leadership, the newspaper reported, citing unidentified officials. However, the timing remains uncertain and the UAE government didn’t provide a comment for the story, according to the FT.

It's worth noting that family-owned businesses account for majority of commercial activities in the UAE. Some of the well-known family-owned businesses in UAE, include Majid Al Futtaim Holding, the operator of Carrefour SA stores in the Middle East, and Al Habtoor Group, which owns hotels, properties and holds car dealerships, and AlFahim Group whose portfolio includes companies across the automotive, real estate, energy and travel sectors.


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