UAE clarifies filing thresholds under the Federal Competition Law

Mohamad Tbaishat, corporate law expert at Pinsent Masons, was commenting following the long-awaited cabinet decision No.3 of 2025 – “Implementing Regulation”. These regulations supplement the new Federal Competition Law that came into force in 2024.

The new law ushers in a new era in the country’s competition landscape, impacting entities operating in or looking to operate within the competition sphere of the UAE.

The Implementing Regulation has added a new criterion for determining if there is an economic concentration. Under the implementing regulation, there will be an economic concentration if the entities involved have a total UAE turnover that exceeds AED 300 million or if the total market share will be 40%. In either case, competition clearance will be required from the ministry of economy.

Previously, the concerned entities were only required to make a filing if a transaction would cause them to have a total market share of over 40%. However, the implementing regulation has widened the scope, such that if the total annual turnover would be in excess of AED 300 million (approximately US$81.7), the ministry’s approval will be required even if the total market share would remain below 40%.

This new threshold is likely to capture a wider number of transactions and joint ventures and lead to a rise of competition law filings with the ministry of economy.

“The regulation will help boost investor confidence when planning and executing merger and acquisitions transactions and joint ventures in the UAE,” said Thabishat.

The implementing regulation will come into force on 21 March.