UAE Ministry of Economy meets retailers and traders to coordinate preparations for the holy month of Ramadan

The participants discussed plans and actions to ensure the availability of goods in the domestic market; control prices; and prevent exploitative trading. They also talked about the uniqueness of Ramadan.

MoE Undersecretary H.E. Mohammed Ahmed Bin Abdulaziz Alshihhi emphasized that the Ministry has prepared a comprehensive plan to monitor and control markets in preparation for the holy month, within the limits of its responsibility to protect the domestic market and stabilize prices. He pointed to significant Ministerial efforts to ensure the availability and affordability of basic food commodities, as well as their conformity with quality and safety standards in cooperation with competent authorities.

H.E. Alshihhi further stated that the preservation of market stability and consumer protection is not the sole duty of the MoE but rather a responsibility shared by federal and local governments and civil society to counteract activities detrimental to the consumer, the community, and the national economy. He added that the Ministry is addressing all aspects in conflict with domestic market policies and laws, such as monopolies, which undermine the concept of a free economy. He also pointed to government efforts to curb the rising prices of basic food commodities and the effects of inflation through various economic and social policies.

The Undersecretary noted that the commitment to the mechanisms of a free market economy does not mean leaving the local market in the hands of traders, monopolists and unfair practices, as there are policies to protect consumer rights. He emphasized that the government would not interfere in price setting but would rather seek a balance between supply and demand, especially in active seasons such as the holy month of Ramadan. He also affirmed the fight against monopolies and traders who disrupt market balance.

The Ministry official warned traders and businessmen against increasing or monopolizing prices and exploiting the unique market conditions created by Ramadan, promising that the MoE will conduct inspections to ensure the availability of basic food commodities and prevent exploitation from traders and retail outlets during the blessed month. He also underlined the importance of enhancing consumer awareness and educating them in rationalizing their expenses and avoiding buying frenzies.

For his part, MoE Consumer Protection Department Director Dr. Hashem Al Nuaimi, who presided over the meeting, emphasized the Ministry's influential role in convincing cooperative societies and private retailers to reduce the high prices of materials and goods, especially food products, in the domestic market. Dr. Al Nuaimi revealed a collaborative initiative with the private sector to package selected basic goods and food items in large cans and sell them at cost to consumers. These would include rice; sugar; vegetable oil; tea; lentils; mash; flour; juice; and milk.

The Director also pointed out that the Ministry has begun placing 'fixed-price' stickers on all basic commodities as part of price stabilization agreements signed with cooperative societies and major retailers Carrefour and Lulu Hypermarket to maintain 2007 rates. He explained that the initiative will easily distinguish 'fixed-price' items within shopping outlets.

Dr. Al Nuaimi confirmed the eagerness of the MoE to implement the agreements signed with the cooperative societies and the two retail companies, which constitute 70 per cent of the total UAE retail market; he also hoped that the agreements could be expanded to other associations and companies so as to control prices; achieve market balance; and curb inflation. In addition, he encouraged traders, companies, and cooperative societies to take advantage of legal amendments concerning the write-off of 15 basic food commodities agencies under the Register of Commercial Agencies, which sanctions the unconditional importation of the 15 items.

Finally, the Director talked about the importance of public-private sector cooperation in light of significant price increases. He said that the global phenomenon has tremendous economic and social repercussions, which require concentration on the more important issues and viable solutions. Dr. Nuaimi also emphasized the vital role of the private sector in controlling price increases, specifically through the adoption of projects aimed at providing the daily needs of citizens and residents.

The Ministry of Economy urged consumers to contact its Department of Consumer Protection mainly through its dedicated toll free hotline (600522225) in case of any important observations regarding the implementation of the retailer agreements, particularly on fixed-price goods. The Ministry also encouraged reports on abuses to the domestic market.