H.E. Eng. Sultan bin Saeed Al Mansoori, UAE Minister of Economy, issued a ministerial decision approving the status of Economic Concentration in the UAE market for the upcoming acquisition of Careem - one of the leading start-ups established in the UAE - by the global company Uber.
Under the Competition Law No. 4 of 2012 and the Executive Regulation No. 37 of 2014, companies operating in the UAE are required to submit a request to the Ministry of Economy regarding the status of Economic Concentration prior to the completion of a merger or acquisition.
This ensures that the acquisition or merger will not lead to the dominance or control of the corresponding markets in the UAE at rates exceeding the percentages stipulated by the Law.
In line with this, Uber had applied for Economic Concentration to the MOE.
The market for Uber and Careem was studied in relation to private taxi services that cater to regular demand and demand via telephone and smart applications.
In view of the passenger transport sector data in the country, technical details and financial and market activities, and after informing the Competition Regulation Committee, it was found that the acquisition would not constitute a case of breach of competition in the light of previous data, resulting in the approval of the application by the Minister of Economy.
Al Mansoori 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.
Al Mansoori added that the UAE is home to many successful start-ups that have successfully competed regionally and globally.
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The UAE is now a regional destination that attracts and embraces start-ups based on young and innovative ideas by supporting and promoting entrepreneurship. It also provides state-of-the-art infrastructure, legislative and technological systems that serve the ambitious orientations and vision of the country in building a diversified and sustainable economy.
The Competition Regulation Committee, during its first annual meeting for the year held at the headquarters of the Ministry in Dubai under the chairmanship of H.E Eng. Mohammed Bin Abdul Aziz Al Shehhi, Undersecretary of Economic Affairs in the Ministry of Economy, reviewed the request by Uber and Careem for economic concentration in connection with the proposed acquisition.
After studying the market conditions for private taxi transport services, the Committee found that the acquisition would not result in a situation of economic concentration in excess of the percentages stipulated in Competition law (40%), and then recommended approval of the application.
The meeting was held in the presence of H.E Humaid Bin Butti Al Muhairi, Assistant Undersecretary for Commercial Affairs, Ministry of Economy and Dr. Hashim Al Nuaimi, Director of the Competitiveness and Consumer Protection Department at the Ministry of Economy, as well as representatives of local authorities and Chambers of Commerce and Industry.
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