How the UAE Merger Review Process Works
1. Initial Filing Preparation
The parties prepare the application, supporting corporate documents, transaction documents, financial information, ownership details, and an economic report.
For an acquisition, the filing is generally submitted by the acquiring undertaking or its authorized representative. For a merger or joint venture, the parties may file jointly or through an authorized party. Bracewell LLP 2. Completeness Review
The Competition Department conducts an initial formal review within 10 working days. That period may be extended by another 10 working days.
When additional information is needed to determine whether the filing is complete, the parties may be given up to 10 working days to provide it. The completeness stage can therefore materially affect the start of the substantive review period. Covington & Burling 3. Substantive Competition Assessment
The Ministry may assess matters including:
- The structure of the proposed transaction
- The parties’ current and future market shares
- The possibility of creating or strengthening a dominant position
- The availability of competing or substitute products and services
- Barriers preventing new competitors from entering the market
- The likely effect on pricing
- The effect on quality and availability
- The impact on customers and consumer choice
- Claimed economic efficiencies or positive effects
- Proposed remedies or commitments
The review is not limited to checking whether the filing form has been completed. The transaction’s economic effect is central to the assessment. Bracewell LLP 4. Third-Party Participation
Once basic information about the transaction is published by the Ministry, interested parties may have 15 working days to submit observations or a reasoned objection supported by evidence.
Potential participants may include competitors, customers, suppliers, or other parties able to demonstrate a genuine interest in the transaction. Bracewell LLP This matters for buyers because a transaction that appears uncontroversial internally may attract objections from commercial parties affected by the proposed combination.
5. Final Decision
The possible outcomes include:
- Approval
- Approval subject to conditions or commitments
- Rejection
The Ministry may consider proposed commitments designed to address potential anti-competitive effects. Buyers should not assume that clearance, when granted, will always be unconditional. MOECAED What Documents May Be Required?
The 2026 regulations introduce a detailed filing dossier.
The supporting materials may include:
- Memoranda and articles of association
- Commercial licences
- The transaction agreement
- Audited financial statements for the previous three fiscal years
- Shareholder or partner information
- Ownership percentages
- Registered office and branch details
- Proof that the filing fee has been paid
- An economic report addressing the transaction’s market effects
The economic report may need to cover:
- The relevant market
- Market conditions during the previous three fiscal years
- Competitors and estimated market shares
- Principal customers
- Horizontal or vertical overlaps
- Markets affected by the transaction
- Effects on price, quality, supply, and customer choice
- Expected efficiencies
- Proposed commitments or remedies
- Related mergers, acquisitions, and joint ventures completed during the previous three years
These requirements mean that finance, legal, strategy, and commercial teams may all need to contribute to the filing. Bracewell LLP How Much Is the UAE Merger Filing Fee?
A separate fees decision, Cabinet Decision No. 105 of 2026, introduces a fee for economic concentration clearance applications.
The reported fee is:
0.02% of the total annual sales of all undertakings participating in the economic concentration, capped at AED 150,000.
The fees decision was published on 29 June 2026 and is reported to take effect on 29 July 2026, one day before the new executive regulations take effect. The method used to calculate the relevant annual sales should be confirmed before payment. Bracewell LLP The filing fee is separate from legal, economic, advisory, translation, and document-preparation costs.
What Happens If the Parties Complete Without Notification?
Failure to notify does not prevent the Ministry or another competent authority from investigating the transaction before or after completion.
For a breach of the economic concentration notification obligation, the Competition Law provides for a fine of between 2% and 10% of the annual UAE sales or service revenues connected with the violation during the previous fiscal year.
When that amount cannot be established, the fine may range from AED 500,000 to AED 5 million. UAE Legislation The commercial consequences may extend beyond the fine. A compliance failure can affect:
- The transaction timetable
- Financing availability
- Closing certainty
- Board approval
- Seller confidence
- Contractual liability
- Reputation
- Integration planning
- Relationships with regulators
The safest position is to screen the transaction early enough for the result to influence the deal documents.
What Is Gun Jumping?
Gun jumping occurs when parties implement a transaction, or begin behaving as though they have already combined, before required merger clearance has been obtained.
The exact boundary depends on the transaction and applicable legal advice. Potential concerns may include:
- Transferring control before clearance
- Integrating management or operations prematurely
- Coordinating competitive strategy
- Directing the target’s commercial decisions
- Sharing competitively sensitive information without safeguards
- Combining customer or supplier negotiations
- Implementing transaction steps that cannot realistically be reversed
Buyers still need enough information to conduct due diligence and plan the transaction. The solution is not to stop preparing. It is to use suitable confidentiality controls, clean-team arrangements where appropriate, and legal guidance on what may occur before clearance.
What Buyers Should Add to the Transaction Documents
Where a filing may be required, the letter of intent, heads of terms, and final transaction documents should address regulatory risk.
Important provisions may include:
Competition Clearance as a Condition to Closing
The transaction should not complete until the required approval has been obtained or the relevant condition has otherwise been satisfied in accordance with legal advice.
Cooperation Obligations
Both parties should provide the information, documents, and signatures needed for the filing.
Responsibility for Preparing the Filing
The agreement should clarify who leads the process, who appoints counsel, who reviews submissions, and who communicates with the Ministry.
Filing Fees and Professional Costs
The parties should agree who pays the government fee and the professional costs of preparing the submission.
Commitments and Remedies
The agreement should specify whether the buyer must accept conditions or remedies and, if so, how far that obligation extends.
Long-Stop Date
The long-stop date should reflect the statutory review period, possible extension, completeness review, information requests, and other regulatory approvals.
Conduct Before Closing
The seller may be required to operate in the ordinary course while preserving the buyer’s future value, without giving the buyer premature control.
Termination Rights
The documents should explain what happens if approval is refused, delayed beyond the long-stop date, or granted subject to unacceptable conditions.
Transaction structure should also be considered alongside valuation. A Market Value Assessment can help establish a defensible value range, but regulatory risk, delay, and remedy exposure may still affect what a buyer is prepared to pay. The Buyer’s UAE Merger Control Checklist
Before signing or completing a transaction, buyers should work through the following steps.
1. Identify Whether the Transaction Transfers Control
Review the shares, assets, voting rights, governance rights, veto rights, board rights, and related agreements.
2. Define the Relevant Market
Do not assume the market is the buyer’s entire industry. Define the actual products, services, customers, and geography affected.
3. Calculate Combined UAE Sales
Determine the annual sales generated by the relevant undertakings within the relevant UAE market during the previous fiscal year.
4. Estimate Combined Market Share
Use credible market information rather than internal assumptions. Pay particular attention to narrow or specialized markets.
5. Identify the Correct Regulator
Confirm whether the Ministry, a local competent authority, or a sector regulator has a role in the transaction.
6. Build Clearance Into the Timeline
Do not agree to a closing date that assumes regulatory clearance can be obtained immediately.
7. Gather Three Years of Supporting Information
Prepare audited financials, ownership documents, licences, market data, transaction documents, and the economic rationale early.
8. Control Pre-Closing Information Exchange
Ensure that diligence access does not become premature commercial coordination.
9. Address Regulatory Risk in the Agreement
Allocate responsibility for filings, costs, delays, remedies, and refusal.
10. Keep the Commercial and Legal Workstreams Connected
The valuation, transaction structure, due diligence findings, financing, and regulatory strategy should support one another.
What Sellers Need to Prepare
Although the buyer may lead an acquisition filing, sellers cannot remain passive.
A seller may need to provide:
- Corporate documents
- Ownership information
- Audited financial statements
- UAE sales data
- Product and customer information
- Market-share information
- Competitor data
- Transaction documents
- Evidence supporting claimed efficiencies
- Prompt responses to information requests
A seller that cannot produce reliable data may delay the filing, create doubt about the business, and weaken confidence in the wider transaction.
Regulatory readiness should therefore form part of deal readiness, particularly for businesses operating in concentrated or specialist markets.
Does Merger Clearance Replace Due Diligence?
No.
Merger clearance considers the transaction’s impact on competition. Due diligence investigates the quality, risks, liabilities, financial performance, commercial position, and operational reality of the target business.
A deal can receive competition clearance and still be a poor acquisition.
A deal can also pass financial and legal due diligence but remain unable to close until required regulatory approval is obtained.
Both workstreams need to be coordinated, but they answer different questions:
- Due diligence: What exactly is the buyer acquiring, and what risks are hidden?
- Merger control: Does the transaction require notification, and could it harm competition in the relevant market?
- Transaction advisory: Does the deal make commercial sense, how should it be valued and structured, and how should it move toward closing?
Final Answer: What Should Buyers Do Before 30 July?
Buyers with an active UAE transaction should not wait until 30 July to start assessing the new procedures.
The immediate priorities are:
- Confirm whether the transaction creates an economic concentration.
- Test both the AED 300 million sales threshold and the 40% market-share threshold.
- Define the relevant market carefully.
- Identify the correct regulatory authority.
- Build sufficient clearance time into the transaction documents.
- Prepare the filing information before the proposed closing date becomes fixed.
- Avoid implementing the transaction while approval is pending.
- Coordinate competition counsel with the commercial, financial, and due diligence teams.
The biggest mistake is assuming that the purchase price, the target’s size, or the parties’ confidence in the deal determines whether notification is required. It does not.
Transworld GCC supports buyers and sellers with valuation, transaction preparation, commercial due diligence, negotiation, and deal coordination. Formal competition-law advice and regulatory filings should be managed with qualified UAE legal counsel.
Frequently Asked Questions
When Do the UAE Merger Control Procedures Take Effect?
Cabinet Resolution No. 59 of 2026 takes effect on 30 July 2026. It provides the detailed filing, review, information, and third-party participation procedures supporting the UAE competition law framework.
What Are the UAE Merger Notification Thresholds?
A filing may be required when the parties’ combined annual sales in the relevant market within the UAE exceed AED 300 million during the last fiscal year, or when their combined share of the relevant UAE market exceeds 40%.
Is the AED 300 Million Threshold Based on the Purchase Price?
No. The threshold is based on the total annual sales of the undertakings concerned in the relevant market within the UAE during the last fiscal year. The purchase price is not the stated threshold test.
Can a Smaller Acquisition Still Require UAE Merger Clearance?
Yes. A transaction below the AED 300 million sales threshold may still require notification if the parties’ combined share exceeds 40% in a properly defined relevant UAE market.
Can the Parties Complete a Deal While UAE Merger Review Is Pending?
A notifiable economic concentration is subject to a standstill obligation. The parties should not complete or implement the transaction while the review is pending and should obtain legal advice on permitted pre-closing conduct.
How Long Can UAE Merger Control Clearance Take?
The statutory decision period is 90 days from receipt of a complete application and may be extended by 45 days. Completeness checks, information requests, sector input, and third-party procedures can affect the practical timetable.
What Are the Penalties for Failing to Notify a UAE Economic Concentration?
A breach of the notification obligation can result in a fine of 2% to 10% of the annual UAE sales or service revenues connected with the violation. If that amount cannot be determined, the fine may range from AED 500,000 to AED 5 million.
