News Update: UAE calls on companies to immediately revert to previous prices of building material

19-02-2024

The Chairman of the UAE Contractors' Association, Dr. Ahmed Saif Belhasa initiated a meeting with the Ministry of Economy last 15th of February 2024 to discuss the member's concern on the sudden price increase of building materials.

We are pleased to be able to represent our members and raise the issue to the Ministry of Economy. The Ministry listened and took action to assist the contractor’s dilemma on increased cost for building supplies/materials.

In light of UAE Cabinet's directive to postpone the decision of the weights and dimensions of heavy vehicles, the Ministry of Economy has called on companies to revert to the previous prices of building materials and warned that it will take decisive measures to prevent any increases.

The ministry warned that it would take decisive actions to prevent any unjustifiable price increases, including imposing financial penalties of up to Dhs1 million on violating companies.

The ministry observed a recent surge in construction material prices on the local market due to the Cabinet decision taking effect earlier this month. In response to the Cabinet's postponement, the ministry will implement measures to curb unjustifiable price hikes for materials, particularly construction items, aiming to maintain fair pricing across markets.

The ministry warned that any companies that would raise prices of construction materials without prior approval would face accountability and immediate financial penalties, with strict action to be taken against violators, including fines and legal consequences for coordinated price increases.

The ministry said that all companies must seek official prior approvals for before embarking on any price adjustments, providing justifications for review.

The ministry added that it aims to promote fair competition, prevent monopolistic practices, and ensure consumer-friendly markets in collaboration with all industry stakeholders.

The Ministry urges the public to report any building material price hikes by calling 8001222 or emailing info@economy.ae.

The UAE Cabinet earlier today directed to postpone the implementation of the resolution regulating weights and dimensions of heavy vehicles in the county. The Cabinet also directed the Ministry of Energy and Infrastructure to conduct an extensive study on decision rationales. Furthermore, the Cabinet directed the Ministry of Economy to cooperate with all economic entities to study and execute vital measures to prevent any unjustified increase in prices of any goods and commodities.

WAM