Abu Dhabi: UAE’s Minister of Economy Sultan bin Saeed Al Mansouri approves the acquisition of Dubai-based ride-hailing platform Careem by Uber.
In accordance with the UAE Competition Law, companies operating in UAE have to submit a request to the Ministry of Economy for partnership or acquisition of any business or firm beforehand. This prevents dominance or control over the corresponding markets as a result of any partnership or acquisition.
Uber had applied to the Ministry of Economy who studied the market for Uber and Careem in terms of the private taxi services. And the ministry didn’t find any activity or potential risk resulting in the breach of the law.
According to the Emirates News Agency a.k.a WAM, Al Mansouri said that the public transport sectors across the world are witnessing fierce competition especially in light of the progressive development of modern technologies and advanced services in mass transit and passenger transport services, and the emergence of many alternative means of non-traditional transport, including the participation of cars and self-driving techniques and many alternatives to consumers.
The integration of expertise, competencies and modern technologies ultimately serve the interests of consumers and serve the progress of the transport sector in general. Al Mansouri also added that the government is working in partnership with the private sector to further develop the investment climate and the business environment.
“The UAE continues to follow its open economic approach, which was recently reinforced by the issuance of the new foreign direct investment law that allows foreign investors up to 100 percent ownership in selected sectors and economic zones.”
– Al Mansouri – Minister of Economy, UAE
Moreover, The Competition Regulation Committee, during its first annual meeting 2019, which took place in the ministry headquarter, Dubai under the chairmanship of Mohammed Bin Abdul Aziz Al Shehhi, Assistant Under-Secretary Humaid bin Butti Al Muhairi and the Director of the Competitiveness and Consumer Protection Department Dr. Hashim Al Nuaimi. The committee reviewed the application and concluded that the acquisition of Careem by Uber wouldn’t result in the excess of percentages stipulated in the Competition Law i.e. 40 percent. And thus, recommended the approval of the application.