The UAE Cabinet has issued a directive to postpone the decision regarding the weights and dimensions of heavy vehicles. Consequently, the UAE’s Ministry of Economy has instructed companies to revert to previous prices of building materials. It has warned of decisive measures to prevent any price increases, including imposing financial penalties of up to Dh1 million on violators.
The UAE’s Ministry of Economy noted a recent surge in construction / building material prices due to the earlier implementation of the Cabinet decision. In response, it plans to implement measures to curb unjustifiable price hikes, particularly for construction items, to maintain fair pricing across markets.
Companies raising prices without prior approval will face accountability and immediate financial penalties, with strict action against violators, including fines and legal consequences for coordinated price increases. Official approval must be sought before any price adjustments, with justifications provided for review.
The Ministry aims to promote fair competition, prevent monopolistic practices, and ensure consumer-friendly markets in collaboration with industry stakeholders. It encourages the public to report any building material price hikes.
The UAE Cabinet’s directive also includes conducting an extensive study on the decision regarding heavy vehicle weights and dimensions and cooperating with economic entities to prevent unjustified price increases.
