UAE’s Ministry of economy reaches price agreement on cement

UAE’s Ministry of economy reaches price agreement on cement
Published: 15 July 2008

The UAE Ministry of Economy Monday announced the list of cement outlets and agents who have agreed to sell cement at AED18 (US$4.91) per bag at stores within the city limits and for AED19 per bag in outlets that are away from the city.
 
His Excellency Mohammed Ahmed Bin Abdul Aziz Al Shihhi, Undersecretary at the Ministry of Economy, said that the agreement completes the memorandum of understanding that the Ministry of Economy signed on May 2008 with cement manufacturers in the UAE to enhance coordination with cement producers and highlight the responsibility to consumers by regulating prices.
 
"This step reflects the directions of His Excellency Sultan Bin Saeed Al Mansouri, the UAE Minister of Economy, and supports the objectives of the Ministry to regulate the prices of products and services, where needed, for the overall benefit of the economy. Through this initiative, the Ministry aims at preventing cement distributors and agents from raising prices unduly and also ensure timely delivery of cement at an appropriate price," said Al Shihhi.
 
Al Shihhi said that the agreement will contribute to market stability and also curb monopoly practices that are harmful for the economy. According to the agreement and MoU, cement producers will increase production from 150,000 bags to 250,000 bags per day.
 
Al Shihhi stressed that cement factories must commit to the prices and violators will face legal action.