UAE imposes fines up to Dh1 million to curb building material price hikes
The UAE Ministry of Economy is actively working to promote equitable pricing practices in several marketplaces, with a focus on building supplies.
The UAE Cabinet has ordered the Ministry of Economy to urge enterprises to return to the previous costs of construction materials following a mandate from the UAE Cabinet to delay decisions about the dimensions and weights of heavy vehicles. Furthermore, it has issued a warning about tough measures to stop unreasonable pricing hikes, including fining firms up to Dh1 million for violations.
There has been a recent surge in construction material prices in the local market, attributed to the implementation of the Cabinet decision earlier this month. In response, the Ministry plans to implement measures to curb such price hikes, particularly for construction items, with the aim of maintaining fair pricing across markets.
Companies are required to seek official approvals before adjusting prices, providing justifications for review. Any unauthorized price increases will face accountability, immediate financial penalties, and strict action, including fines and legal consequences for coordinated price adjustments.
The Ministry emphasizes its commitment to promoting fair competition, preventing monopolistic practices, and ensuring consumer-friendly markets in collaboration with industry stakeholders.
To address concerns about price hikes, the public is encouraged to report any instances by contacting the Ministry via phone or email.
The UAE Cabinet has also ordered the decision to regulate the dimensions and weights of large vehicles to be postponed. The decision's rationales will be thoroughly investigated by the Ministry of Energy and Infrastructure. It is also mandated that the Ministry of Economy work with other economic organizations to investigate and implement critical steps to curb the arbitrary hikes in prices of products and commodities.
