The UAE Ministry of Economy has thwarted an attempt by the country’s cement producers to raise cement prices by Dh10 (US$2.72) per tonne.
According to the Gulf News, the Ministry of Economy will soon hold a second meeting with the cement producers to discuss the intention of cement producers. Sources in the cement industry said the first meeting which was held between the two parties on June 21 failed to reach an agreement.
Cement producers have been pushing for a price hike citing the inflation as well as an increase in other building materials prices. However, the government did not agree to their claims.
The ministry has asked cement factories and companies to prepare detailed reports, clarifying the changing rates of cement production costs and timings of raw material increases, and their negative impacts on factory profitable returns.
Abdullah Al Saleh, Undersecretary of the Ministry of Economy, denied rumours that a second meeting between Ministry’s officials and cement producers was held on Saturday.
Al Saleh said the ministry aims to preserve the market stability, consumers protection and supporting investors.
The ministry prevented cement companies from raising prices last June, saying that this coincides with the ministry’s directives to ban any commercial cartels from raising their prices individually, to maintain stability, local market equilibrium and consumer protection.
Dr Najeeb Al Shamsi, Director of the Ras Al Khaimah Economic Department warned against any price increase because this would pose a danger to the UAE economy.