UAE plans to end its monopoly on some large merchant families: report

The government of the United Arab Emirates told some of its largest business families that it plans to abolish their monopoly on the sale of imported goods. Financial Times Reported on Sunday.

The government did not immediately respond to Reuters’ request for comment, but the state news agency WAM quoted a statement from the Ministry of Economy, stating that the draft law on commercial institutions is still in the legislative cycle and “it’s too early to give details.”

It added that the Cabinet submitted the draft to the Federal National Council for discussion and possible further amendments.

The Financial Times reported that the proposed legislation would end the existing automatic renewal Commercial organization The Gulf States’ agreement gives foreign companies the opportunity to distribute their own products or replace local agents.

The report quoted an UAE official as saying: “It no longer makes sense for an individual family to have such power and give priority to easy wealth.” “We must modernize our economy.”

The report added that the proposed law must be approved by the UAE’s leadership, and the timing of the approval is still uncertain.

In the past year United Arab EmiratesAs Saudi Arabia’s growing economic competitor, Saudi Arabia has taken measures to make its economy more attractive to foreign investors and talents.

Earlier this year, the UAE stated that following changes to the UAE Company Law, foreigners who set up companies will no longer need UAE shareholders or agents.