UAE Ministry of Economy approves Uber's takeover of Careem
Economic Concentration request accepted after study of market appetite for Careem's and Uber's services against private taxis'
HE Eng Sultan bin Saeed Al Mansoori, the UAE’s Minister of Economy, has issued a ministerial decision approving the status of Economic Concentration in the UAE for the acquisition of local ride-hailing app service Careem by the US's Uber.
According to the UAE's Competition Law No. 4 of 2012 and the Executive Regulation No. 37 of 2014, companies operating in the country are required to submit a request for Economic Concentration to the economy ministry prior to the completion of a merger or acquisition, in order to ensure that the transaction will not lead to the dominance or control of the corresponding markets in the UAE at rates exceeding legally stipulated percentages.
Uber's application for Economic Concentration was approved after the market for both Uber and Careem was studied in relation to private taxi services that also serve through online and offline platforms.
Explaining the process in a statement, the ministry added: "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 the public transport sector was witnessing changing dynamics and “fierce competition” on a global scale in light of technology advancements, the emergence of non-traditional and alternative transport modes, and progress in mass transit.
The UAE minister added that the integration of expertise, competency, and technology would ultimately serve the interests of consumers.