Controversy in the platforms .. Will the UAE end the monopoly of large families on commercial agencies?
Video duration 04 minutes 43 seconds
Digital platforms in the UAE witnessed many discussions after the Financial Times reported that the UAE government informed some of the largest trading families that it intends to end its monopoly on the sale of imported goods.
The news was published by the British Financial Times and transmitted by the pioneers of digital platforms, and the UAE Ministry of Economy commented on it with an explanation reported by the Emirates News Agency (WAM).
And the UAE agency’s website stated that the new commercial agencies bill is still in the legislative stages of its cycle, according to the mechanism followed in the country for issuing and approving laws.
The Ministry of Economy did not give details about the provisions of the draft law, saying that it was “still premature.” She also indicated that the project “was recently transferred from the Council of Ministers to the Federal National Council, where it will be discussed.”
The pioneers of digital platforms interacted through the hashtag “commercial agencies” with the circulating news, expressing their views on this proposal, which the British newspaper said would end the automatic renewal of existing commercial agency agreements. An episode of the “National Newsletter – Your Post” program (12/27/2021) monitored the most prominent tweets and comments received on the platforms.
Nasser Al-Sheikh wrote, “I do not agree with some dear brothers that turning family businesses into public joint stock will solve this challenge.. Rather, this may be negative for investors who will buy shares in a company, a large part of its value will be based on the agencies they own, but some agencies may be lost.” When renewal comes and still something of value evaporates.”
While Aisha Bint Butti Bint Bishr saw in her tweet that many family businesses have not developed their system and are still dependent on agencies, and “the second and third generations of these families have not invested in them for the coming days.”
According to Ibrahim Khalil Ibrahim, the UAE is now facing regional competition from Saudi Arabia to attract foreign investments and companies, and for this reason it has taken a series of measures to liberate the country, and now it has taken the major step to completely abolish commercial agencies.
Commenting on the news, Habib Al-Mulla wrote an article in the “Financial Times” talking about a trend to repeal the commercial agencies law, and that local agents have made significant investments in these agencies and should give them a few years to find a better model with foreign companies or to get a return on their investment.
“competition in the market”
As for the Emirati businessman Khalaf Al Habtoor, he said that lifting the inventory of commercial agencies will enhance competition in the markets and will be a benefit for new traders, and the manufacturer will determine where his interest lies. Although this will require significant costs from new distributors, the Emiratis welcome all decisions that strengthen the position of their free economy.
For his part, Muhammad al-Muraikhi tweeted, “The consumer only knows one thing, which is that (some) exclusive agents have exaggerated their prices, and the evidence is that the product is found at a significantly cheaper price in other countries or even at the source if you can reach it, so the product is not exclusive to one side. Certainly, it enumerates choices and competition, and that the biggest beneficiary of it is the consumer.”
While Muhammad Al Dhaheri believes in his tweet that even if the commercial agencies law is cancelled, local agents have great potential from exhibitions and maintenance workshops, and their competition is difficult.