UAE Enforces Order to Curb Building Material Price Hikes

by Anna Fischer

Published 21 Feb 2024

The Ministry of Economy has initiated measures to uphold equitable pricing standards for construction materials across multiple markets within the country.

In light of the recent decision by the UAE Cabinet to defer the determination of weights and dimensions for heavy vehicles, the Ministry of Economy is respectfully urging companies to revert to their previous prices of building materials. It has issued a warning that any unwarranted price hikes could lead to substantial financial penalties of up to AED 1 million. The ministry urges all companies to comply with the directive to avoid any potential legal consequences.

Source: Pexels

Recent market trends have shown a significant increase in construction material prices in 2023.^[?] Increase also following the implementation of the Cabinet decision earlier this month. In response, the ministry will implement measures to control unjustifiable increases, particularly in construction materials, with the aim of maintaining fair pricing standards across all markets.

Any company found raising prices without prior approval will be held accountable and face immediate financial penalties. Strict measures will be taken against violators, including fines and legal consequences for coordinated price adjustments.

All companies are required to obtain official approval before making any price adjustments, providing justifications for review.

The ministry is committed to promoting fair competition, preventing monopolistic practices, and ensuring consumer-friendly markets in collaboration with industry stakeholders.

Earlier, the UAE Cabinet decided to postpone the implementation of the resolution governing weights and dimensions for heavy vehicles in the country. The Ministry of Energy and Infrastructure has been tasked with conducting a comprehensive study on the decision's rationale. Additionally, the Ministry of Economy has been directed to collaborate with economic entities to study and implement essential measures to prevent unjustified price increases for all goods and commodities.

UAE building materials regulations construction costs

Anna Fischer

Construction Content Writer

Anna has background in IT companies and has written numerous articles on technology topics. Now, building up her expertise in construction and legal regulations, Anna expands the horizons of our blog and delights her readers with insightful articles.

Share this post