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The Council of Ministers issued Cabinet Decision No. 14/2026 signed by Prime Minister Mohammed bin Rashid Al Maktoum on March 18 2026 which corresponds to 29 Ramadan 1447 Hijri. This legislation creates an escalating framework of administrative penalties tied to breaches of Cabinet Decision No. 120/2022 on the rules and controls for pricing consumer goods. It targets retailers and suppliers who raise prices on essential items without first securing approval from the Ministry of Economy while extending oversight to multiple forms of commercial activity.
Initial violations under the decision may draw a written warning yet subsequent breaches incur fines ranging from AED 10,000 to AED 100,000. Temporary or permanent closure of the offending establishment can accompany these fines according to the frequency of the offense. Offenses that continue past the fourth instance trigger doubled fine amounts along with a higher probability of permanent shutdown the Cabinet decision specifies.
The penalties also address violations that involve misleading consumers with inaccurate pricing details or withholding required information. Unlawful agreements between suppliers and retailers intended to drive up prices fall under the same sanctions. These provisions apply equally to transactions conducted through modern technology ensuring that e-commerce operators remain subject to the same regulatory standards as traditional retailers.
Cabinet Decision No. 120/2022 which underpins the new penalties liberalized most consumer goods prices according to market dynamics while requiring prior ministerial approval for adjustments to nine essential categories. The Ministry of Economy has listed cooking oil eggs dairy rice sugar poultry legumes bread and wheat among the items that cannot see price increases without clearance. A ministry statement issued in December 2024 underlined how this policy seeks to promote competition while shielding consumers from unjustified cost rises.
The Central Bank of the UAE reported that inflation averaged 1.3 percent throughout 2025 supported by declines in transport and textile costs together with stable food prices. Central Bank assessments project headline inflation at 1.8 percent for 2026 and 2.0 percent the following year. These moderate levels reflect broader governmental efforts to sustain price stability across essential consumer segments through targeted regulation.
Federal Decree-Law No. 5 of 2023 which amended the 2020 consumer protection statute further bolsters transparency obligations especially for e-commerce platforms operating inside the country. The UAE government portal states that suppliers must furnish dated invoices displaying full pricing and related details while barring misleading advertisements or concealed charges. Such rules complement the latest pricing decision by reinforcing overall consumer safeguards in both digital and physical marketplaces.
