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Find a Competition & Merger Control Lawyer

UAE competition law was substantially reformed by Federal Decree-Law 36 of 2023, which took effect on 29 December 2023 and replaced the earlier Federal Law 4 of 2012, with Executive Regulations following under Cabinet Resolution 59 of 2026, effective 30 July 2026. Merger notification is now governed by clear numerical thresholds under Cabinet Decision 3 of 2025: a filing is generally required where the parties’ combined UAE turnover exceeds AED 300 million, or their combined UAE market share exceeds 40%. Enforcement sits with the Ministry of Economy and Tourism, not a financial regulator. Two points are widely misunderstood: the DIFC and ADGM, as financial free zones, fall outside the federal competition regime and have no competition law of their own, though mainland-affecting conduct can still be caught; and there is no leniency or immunity programme in the UAE, only a post-detection settlement mechanism that requires acknowledging the violation and paying at least double the applicable minimum penalty. LEXNOVA is not a law firm. We help you describe a competition, merger control or dominance matter and explore potentially suitable lawyers with current experience of this regime.

LAST REVIEWED 21 SEPTEMBER 2026

Example Competition & Merger Control Matters

  • Assessing whether a transaction meets the UAE merger notification thresholds
  • Filing a merger notification with the Ministry of Economy and Tourism
  • Responding to a dominance or restrictive agreement investigation
  • Advising on the post-detection settlement mechanism after a suspected violation
  • Reviewing distribution, franchise or agency agreements for competition law risk
  • Assessing whether DIFC- or ADGM-based conduct has mainland competition law exposure

WHO MAY NEED THIS

Businesses considering a merger, acquisition or joint venture with UAE turnover or market share, companies facing a Ministry of Economy and Tourism inquiry into dominance or restrictive agreements, and any business wanting a competition law compliance review of its distribution or pricing arrangements.

Understanding UAE Competition Law

Competition law in the UAE governs mergers, agreements between competitors, and abuse of a dominant market position, aiming to protect competitive markets rather than any individual competitor.

It is a comparatively young, federal regime, substantially reformed in the last few years, which means genuinely current knowledge matters more here than in more settled areas of UAE law.

Federal Decree-Law 36 of 2023: A New Regime

Federal Decree-Law 36 of 2023 replaced the earlier Federal Law 4 of 2012 and took effect on 29 December 2023, establishing the current framework for UAE competition law.

Businesses and lawyers still relying on guidance written for the 2012 law risk missing the current thresholds and mechanisms that now actually apply.

The Executive Regulations and Cabinet Resolution 59 of 2026

The Executive Regulations to Federal Decree-Law 36 of 2023 were issued under Cabinet Resolution 59 of 2026 and took effect on 30 July 2026, filling in the operational detail of the 2023 law.

A lawyer with current knowledge of both the law and its Executive Regulations is better placed to advise accurately than one working from the 2023 law alone.

Merger Control Thresholds Under Cabinet Decision 3 of 2025

Cabinet Decision 3 of 2025 sets the merger notification thresholds: a filing is generally required where the parties’ combined UAE turnover exceeds AED 300 million, or their combined UAE market share exceeds 40%.

These thresholds are alternative rather than cumulative, meeting either one can trigger a notification obligation, independent of whether the transaction otherwise looks straightforward.

How the Merger Notification Process Works

Where a transaction meets the relevant threshold, the parties generally need to notify the Ministry of Economy and Tourism before completing the deal.

A lawyer can assess early whether a specific transaction is notifiable, since building this assessment into deal timelines from the outset avoids delay later.

Who Enforces UAE Competition Law

The Ministry of Economy and Tourism enforces UAE competition law, covering merger review, dominance investigations and restrictive agreement inquiries.

This is a distinct authority from the UAE’s financial regulators, VARA, the DFSA, the FSRA and the CBUAE, a competition matter and a financial regulatory matter are handled by entirely separate authorities even when they arise from the same underlying business.

Where DIFC and ADGM Sit

The DIFC and ADGM, as financial free zones, fall outside the federal competition regime, and neither has enacted its own competition law.

This does not mean conduct connected to these free zones is automatically beyond reach, mainland-affecting conduct can still be caught by UAE competition law even where it originates from a DIFC or ADGM entity.

No Leniency Programme: What Exists Instead

A point widely misunderstood, including by some advisers, is that the UAE has no leniency or immunity programme for parties who come forward about a competition law violation.

Instead, the only available route is a post-detection settlement mechanism, a materially different proposition from a leniency application that could secure immunity before detection.

The Settlement Mechanism in Detail

The settlement mechanism allows a party to resolve a matter after detection by acknowledging the violation and paying a penalty of at least double the applicable minimum.

Because this requires both an admission and an elevated penalty, deciding whether to pursue settlement or contest a finding is a genuinely significant strategic decision, not a routine formality.

Prohibited Agreements and Abuse of Dominance

Agreements between competitors that restrict competition, such as price fixing or market allocation, are generally prohibited under the current framework.

Abuse of a dominant position covers a business with substantial market power using that position in ways that harm competition, assessed on the specific facts rather than a fixed formula.

Cross-Border Mergers and UAE Exposure

A transaction between two companies headquartered outside the UAE can still trigger a UAE notification obligation if their combined UAE turnover or market share meets the relevant threshold.

International deal teams sometimes overlook this UAE-specific filing requirement when focused on larger jurisdictions, a lawyer with current UAE competition experience should be brought in early on any deal with meaningful UAE revenue.

Competition Compliance Programmes

Given the absence of a leniency route to soften the consequences of a violation, a proactive competition compliance programme is generally worth building before an issue arises, not after.

This typically covers training on pricing and distribution practices, record-keeping, and a clear internal escalation process if a concern arises.

Investigations and Information Requests

A competition investigation can begin with an information request from the Ministry of Economy and Tourism, prompted by a complaint, a merger review, or a market study.

Organised records and a clear internal process for responding to such requests generally put a business in a stronger position from the outset.

Competition Law and Distribution, Franchise and Agency Agreements

Distribution, franchise and agency arrangements are a common source of competition law questions, particularly around exclusivity, resale price restrictions and territorial limits.

A lawyer can review these agreements for competition law risk alongside the commercial and franchise-specific considerations covered on our Franchise page.

LEXNOVA is not a law firm and does not provide legal advice. Legal Connect exists to help you describe a competition or merger control matter clearly, then explore potentially suitable lawyers from our network.

We consider whether your matter is a merger filing, a compliance review or an investigation, with every potential match reviewed by a person before an introduction.

Fees vary based on whether the matter is a straightforward merger filing assessment, a full notification, or a contested investigation.

LEXNOVA does not set or control fees, this is communicated directly by each professional, and it is reasonable to request a clear estimate before engaging anyone.

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FAQ

Overview & Eligibility

Federal Decree-Law 36 of 2023 is the current federal competition law, in effect since 29 December 2023, replacing the earlier Federal Law 4 of 2012.

Federal Decree-Law 36 of 2023 replaced Federal Law 4 of 2012 and took effect on 29 December 2023, with Executive Regulations following later under Cabinet Resolution 59 of 2026. A lawyer can advise on how the current framework applies to your specific matter.

Yes, the Executive Regulations were issued under Cabinet Resolution 59 of 2026 and took effect on 30 July 2026.

Under Cabinet Decision 3 of 2025, a merger notification is generally required where the parties’ combined UAE turnover exceeds AED 300 million, or their combined UAE market share exceeds 40%.

No, the thresholds are alternative, not cumulative: exceeding either the AED 300 million combined UAE turnover threshold or the 40% combined UAE market share threshold can trigger a notification requirement.

The Ministry of Economy and Tourism enforces UAE competition law, including merger control, dominance and restrictive agreement matters. This is separate from the UAE’s financial regulators.

No, the DIFC does not have its own competition law. As a financial free zone, it falls outside the federal competition regime, though this does not mean DIFC-related conduct can never have competition law consequences.

No, like the DIFC, ADGM does not have its own competition law and falls outside the federal competition regime as a financial free zone.

Not necessarily. While the DIFC and ADGM sit outside the federal competition regime as financial free zones, conduct that affects the mainland market can still be caught by UAE competition law. A lawyer can assess your specific exposure.

No, there is no leniency or immunity programme under UAE competition law. This is a widely misunderstood point, and it materially changes the calculus around self-reporting compared with jurisdictions that do offer immunity.

The available route is a post-detection settlement mechanism, which requires acknowledging the violation and paying at least double the applicable minimum penalty. It is not the same as a leniency or immunity application.

It allows a party to resolve a matter after it has been detected by acknowledging the violation and paying a penalty set at no less than double the applicable minimum. A lawyer can advise honestly on whether this route makes sense for your specific facts.

Not necessarily, since settlement requires paying at least double the minimum penalty on top of acknowledging the violation. This is a genuine trade-off worth assessing carefully with a lawyer rather than assuming settlement is always preferable.

Agreements between competitors that restrict competition, such as price fixing or market allocation, are generally prohibited, alongside other restrictive practices. A lawyer can assess a specific agreement against the current framework.

Abuse of dominance generally involves a company with substantial market power using that position in ways that harm competition, such as certain exclusionary or exploitative practices. Whether specific conduct qualifies depends heavily on the facts.

Dominance assessment generally considers market share and market power among other factors, a lawyer can advise on how this applies to your specific market position rather than relying on a fixed rule of thumb.

Yes, the merger notification thresholds under Cabinet Decision 3 of 2025 apply based on combined turnover or market share, independent of whether either party is separately considered dominant.

Failing to notify a merger that meets the thresholds can expose the parties to enforcement action by the Ministry of Economy and Tourism, a lawyer should assess notification obligations before completing any qualifying transaction.

Yes, if the parties’ combined UAE turnover or UAE market share meets the relevant threshold, the transaction can trigger a notification obligation even where the parties are headquartered outside the UAE.

Competition enforcement sits with the Ministry of Economy and Tourism, a separate authority from financial regulators such as VARA, the DFSA, the FSRA and the CBUAE, though a single business situation can sometimes engage more than one regime.

Maintaining organised records of pricing, distribution and competitor communications, and having a clear internal process for responding to regulator requests, generally puts a business in a stronger position if an inquiry arises.

Given the relative newness of this regime and the absence of a leniency route to fall back on, a proactive compliance programme is generally worth considering, particularly for businesses with significant UAE market share or extensive distribution arrangements.

We consider whether your matter is a merger filing, a compliance review, or an investigation, along with the Ministry stage involved, with every potential match reviewed by a person before an introduction.

No, LEXNOVA does not guarantee outcomes, and no responsible lawyer would either. Outcomes depend on your specific transaction or conduct and how the Ministry assesses it.

Fees & Timelines

Cost generally depends on whether the matter is a merger filing, a compliance review, or a contested investigation, and the seniority of the lawyer engaged. LEXNOVA does not set or control fees — ask any introduced lawyer for a written estimate before engaging them.

No, a general description is enough at this stage. Sensitive commercial and deal information is best shared directly with the lawyer once you are introduced.

A notifiable merger generally should not complete before clearance, and an active investigation carries its own deadlines, marking your request as urgent helps us prioritise accordingly.

LEXNOVA is not a law firm and does not provide legal advice, legal opinions, legal representation, or legal services. Any legal advice or representation is provided directly by the independent legal professional engaged by the client.

A connection or introduction does not constitute a guarantee, endorsement, or assurance of outcome. Users should independently confirm the professional's qualifications, authorization, fees, scope of engagement, and suitability.