UAE Competition Law 2026: New Rules for Mergers, Exclusive Agreements and Businesses

Competition law in the UAE has become far more relevant to everyday business decisions.

The main law, Federal Decree-Law No. 36 of 2023 Regulating Competition, has been in place for several years. But 2026 brought the rules needed to make much of that framework work in practice.

Cabinet Resolution No. 59 of 2026 introduced detailed executive regulations and became effective on 30 July 2026. New filing fees also took effect in July. The Ministry of Economy & Tourism published guidance on defining relevant markets and introduced sector-specific rules dealing with exclusive arrangements in digital food delivery.

For businesses, this means mergers, acquisitions, joint ventures, distribution contracts and exclusivity clauses deserve a competition-law check much earlier than before.

What Is the UAE Competition Law?

The federal competition regime is mainly built around Federal Decree-Law No. 36 of 2023. It seeks to maintain competition in UAE markets by regulating restrictive agreements, abuse of dominant positions, economic dependence, predatory pricing and economic concentrations such as mergers and acquisitions.

Its reach can also extend beyond the country. The law applies to economic activities carried on outside the UAE if those activities affect competition within the UAE. This is particularly relevant for international groups, online businesses and platforms serving UAE customers without having their main headquarters here.

You can check the current laws and implementing decisions through the Ministry of Economy & Tourism's competition legislation section.

What Changed Under UAE Competition Law in 2026?

The biggest practical development is Cabinet Resolution No. 59 of 2026.

It was issued on 20 April 2026, published on 30 April and became effective on 30 July 2026. It replaced the older 2014 executive regulations and provides procedures for merger applications, exemptions, investigations, complaints and other competition matters.

The changes make the system much easier for regulators to operate. Businesses now have clearer rules about what information must be submitted and how applications will be assessed.

There is also more transparency during merger reviews. In certain cases, information about a proposed transaction can be published and interested parties may be allowed to submit views or objections.

UAE Merger Control Thresholds in 2026

A merger does not have to involve two huge UAE corporations before competition rules become relevant.

An "economic concentration" can include a merger or an acquisition that transfers direct or indirect control over another undertaking. The underlying concept is broad enough to make some joint ventures and other control-changing transactions worth reviewing as well.

Under Cabinet Decision No. 3 of 2025, notification is required where either of these tests is crossed:

The important word here is or. You do not need to cross both thresholds.

A transaction with a relatively modest market share could therefore still require approval if the relevant UAE sales threshold exceeds AED 300 million.

The Relevant Market Has Become a Key Question

Calculating AED 300 million is not always as simple as adding the worldwide turnover of two companies.

The threshold refers to sales in the relevant market within the UAE. The market-share test also depends on defining that same relevant market correctly.

The Ministry published Guidelines on Relevant Market Definition in July 2026. The analysis looks at the relevant product or service and the geographic market in which competition takes place. Digital and online markets may also be considered.

Consider two companies selling specialist industrial software. Their total UAE revenue may be AED 400 million. If only AED 180 million relates to the specific relevant product market involved in the transaction, the assessment can look very different.

This is why businesses should avoid applying merger thresholds using company-wide revenue figures without first considering market definition.

Merger Notification Must Happen Before Closing

Where a transaction meets the notification requirements, the parties must submit the economic concentration application at least 90 days before completion.

The Ministry then has 90 days to decide on the application once it has received a complete filing. This period can be extended by another 45 days.

The parties must not complete the economic concentration during the review period. If the authority does not issue its decision within the statutory period, the transaction is treated as rejected rather than automatically approved. This can affect the entire timetable of an acquisition.

If you are signing a share purchase agreement in September and expecting to close in October, discovering a UAE filing requirement after signing can create an obvious problem. Competition analysis should therefore happen during transaction planning rather than a few days before closing.

What Documents Are Required for a Merger Filing?

Cabinet Resolution No. 59 of 2026 makes merger applications much more detailed.

The filing can require corporate documents, commercial licences, transaction agreements and audited financial statements covering the previous three financial years. Businesses must also prepare economic information concerning the affected market.

That economic report can cover competitors, customers, market shares, geographic scope, effects on prices and product availability, proposed commitments and related transactions completed during the previous three years.

For an acquisition, the buyer normally submits the application. For mergers and joint ventures, the relevant parties can submit jointly or appoint an authorised party to handle the filing.

New Merger Filing Fees in 2026

Another practical change arrived through Cabinet Decision No. 105 of 2026.

From 29 July 2026, an economic concentration clearance application carries a fee equal to 0.02% of the total annual sales value of the establishments participating in the concentration, subject to a maximum fee of AED 150,000.

Other competition services now have set fees as well. An exemption request concerning restrictive agreements, dominance, economic dependence or predatory pricing costs AED 5,000. An objection to an economic concentration costs AED 1,500.

These costs should now be added to transaction budgets where UAE merger approval may be required.

What Agreements Can Breach UAE Competition Law?

Competition law is not limited to acquisitions. Article 5 prohibits agreements whose purpose or effect is to restrict, prevent or reduce competition. This can include arrangements involving price fixing, sales conditions, collusive bidding, limiting production or distribution and market allocation.

Businesses should pay particular attention to:

• price coordination between competitors, customer or territory allocation, bid coordination, collective boycotts, restrictions designed to block competitors from a market and contractual conditions that significantly restrict where suppliers, distributors or customers can do business.

These rules can apply whether an arrangement is written, verbal, explicit or implicit. Calling something an "understanding" rather than an agreement will not necessarily keep it outside competition law.

Are Exclusive Agreements Illegal in the UAE?

No. Exclusivity is not automatically prohibited.

The real question is whether the arrangement restricts competition and whether the parties have enough market power for that restriction to create a competition problem.

The law becomes particularly relevant where a dominant business requires customers not to deal with competitors. Similar concerns can arise where one party is economically dependent on another and has no realistic alternative supply or sales channel.

So, for example, a small coffee supplier giving one distributor exclusive rights for a limited area may present a very different competition risk from a major digital platform locking a large portion of a market into long-term exclusive agreements.

Businesses may also apply for exemptions where a restrictive practice produces genuine economic or consumer benefits, the restrictions are necessary to achieve those benefits and competition is not effectively eliminated. The Ministry has established a formal exemption process for such cases.

Special 2026 Rules for Food Delivery Platforms

The UAE took a particularly interesting step in 2026 with Ministerial Decision No. 32 of 2026.

It provides a block exemption for certain exclusive arrangements between digital food promotion and delivery platforms and restaurants. The exemption is narrow and comes with specific conditions.

An exclusivity obligation cannot exceed 12 months. Exclusively contracted restaurants cannot exceed 10% of the merchants listed on the platform. Restaurants must remain able to work with emerging platforms and SME delivery platforms. Post-exclusivity clauses preventing restaurants from joining competitors are also prohibited.

The decision gives businesses a useful clue about the regulator's approach. Short, limited and commercially defensible exclusivity may be acceptable in suitable circumstances. Broad arrangements that shut competitors out of a market deserve much closer review.

Penalties

Ignoring the rules can become expensive. Violations involving restrictive agreements, dominance, economic dependence or predatory pricing can result in fines starting at AED 100,000 and reaching up to 10% of the undertaking's annual UAE sales for the previous fiscal year.

Where annual sales cannot be determined, fines can range from AED 500,000 to AED 5 million.

Failure to notify a reportable economic concentration can carry a fine of between 2% and 10% of annual sales or revenue. Where that figure cannot be calculated, the fixed range can again reach AED 500,000 to AED 5 million.

The Ministry also maintains a formal channel through which businesses and interested parties can submit competition complaints. 

Conclusion

UAE Competition Law 2026 is much more operational than it was a year ago.

The AED 300 million sales threshold and 40% market-share threshold give businesses clearer merger filing triggers. Cabinet Resolution No. 59 of 2026 now provides the detailed process behind those rules. Filing fees are also fixed and the Ministry has published new guidance on market definition.

At the same time, competition compliance goes well beyond mergers. Exclusive contracts, distributor arrangements, pricing practices and relationships with dependent customers can all create issues.

For most businesses, the sensible approach is straightforward: review competition risks before signing the deal or contract, rather than trying to correct the structure after it has already taken effect.

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