More products will be added gradually
The Finance Ministry will ensure that outlets across the country set prices for essential products in accordance with the new pricing policy. Cooking oils, eggs, dairy products, rice, sugar, poultry, legumes, bread and wheat are the nine food items subject to price fixing restrictions. The UAE government has said that this is only a preliminary list and that other types of consumer staples can also be included in the pricing category.
Proof of price increase is required
Earlier this year, the finance ministry approved a policy to curb the rise in the prices of staple food products. This requires suppliers to present sufficient evidence to justify price increases for certain food products that are in high demand. This applies to products in high demand such as milk and dairy products, fresh chicken, eggs, bread, flour, sugar, salt, rice, legumes, cooking oil and mineral water. This list includes over 11,000 items. Suppliers wishing to raise prices due to higher import costs must submit all evidence and data to justify their request. The ministry will later decide on the fine and rate hike.
Support local products
The cabinet also approved a new policy to support local produce by amending the duty free policy. Only imported goods that are not available locally are now exempt from customs duties. Sheikh Mohammed tweeted that the aim is to encourage the use of locally produced materials. He also said that this will encourage producers to use locally produced raw materials as much as possible for their production.
Shariah Supervisory Committees
The Cabinet has taken a decision on the rules, requirements and regulations of oversight committees for companies operating in accordance with Islamic Shariah provisions. The Cabinet has clarified that the activities of the committees will be subject to restrictions. For companies, the approval of the internal Shariah Supervisory Committees must be obtained immediately after the company is set up and before operations start.
