Sunday, 26 December 2021

#UAE Intends to Remove Monopolies of Some Family Businesses: FT - Bloomberg

UAE Intends to Remove Monopolies of Some Family Businesses: FT - Bloomberg

The United Arab Emirates has told some of its biggest family businesses that it plans to remove their monopolies on the sale of imported goods, the Financial Times reported.

The government has proposed legislation ending the automatic renewal of commercial agency agreements, the newspaper reported. It would enable foreign companies to distribute their own goods or change their local agent on contract expiry, FT said.

A law is expected to be approved by the emirati leadership, the FT reported, citing unidentified officials. The timing remains uncertain and the FT said the UAE government didn’t provide a comment for the story.

Family-owned businesses make up majority of commercial activities in the Gulf nation, owning franchises of supermarket chains to car dealerships. Some of the well-known family-owned businesses in Dubai, part of the UAE, include Majid Al Futtaim Holding, the operator of Carrefour SA stores in the Middle East, and Al Habtoor Group, which owns hotels, properties and holds car dealerships.

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