The UAE has instructed building material suppliers to revert to previous prices or face substantial fines.
Following the UAE Cabinet’s decision to postpone determining weights and dimensions of heavy vehicles, the Ministry of Economy has urged companies to return to previous building material prices, cautioning that it will take decisive actions to prevent any increases.
The ministry has cautioned that it will implement decisive measures to thwart unwarranted price hikes, imposing financial penalties of up to AED 1M ($272,300) on companies violating these guidelines.
Recent increases in construction material prices prompted by the Cabinet decision have led the ministry to take steps to curb unjustifiable price rises, especially in construction items, to maintain fair pricing in the markets.
Companies increasing construction material prices without prior approval will face accountability, immediate financial penalties, and stringent actions, including fines and legal consequences for coordinated price increases.
The ministry emphasized the necessity for companies to seek official approvals before adjusting prices, providing justifications for review, according to Arabian Business.
It aims to foster fair competition, prevent monopolistic practices, and ensure consumer-friendly markets in collaboration with industry stakeholders.
The Ministry encourages the public to report building material price hikes by calling 8001222 or emailing info@economy.ae.
The UAE Cabinet directed to postpone implementing the resolution regulating weights and dimensions of heavy vehicles and instructed the Ministry of Energy and Infrastructure to conduct a comprehensive study on decision rationales. Additionally, the Cabinet directed the Ministry of Economy to collaborate with economic entities to prevent unjustified price increases in goods and commodities.
