The government of the United Arab Emirates has informed several of the country’s most powerful business families that it intends to end its monopoly on the sale of imported goods, according to reporters.
The government did not immediately react to requests for comment, but a Ministry of Economy statement carried by state news outlet WAM said a draft law on commercial agencies was still in the legislative process and that “it is still too early to offer details.”
The document was forwarded to the Federal National Council for debate and possible revisions, according to the cabinet.
According to reporters, the proposed legislation would stop existing commercial agency agreements in the Gulf state from automatically renewing, allowing foreign companies to distribute their own goods or change their local agents.
“It no longer makes sense for certain families to wield such authority and have preferential access to easy wealth,” an Emirati official was cited as saying in the paper. “Our economy must be modernized.”
The new law must be authorized by the Emirati leadership, which has yet to be determined, according to the report.
The United Arab Emirates, a growing economic rival of Saudi Arabia, has taken steps in the last year to make its economy more appealing to global investors and talent.
After making amendments to UAE company law earlier this year, the UAE announced that foreigners forming a company will no longer require an Emirati shareholder or agent.
