UAE publishes market-definition guidelines for competition analysis

The UAE's Guidelines on Relevant Market Definition, published in July 2026, establish a comprehensive framework for competition analysis that directly impacts merger notifications, dominance assessments, and market power evaluations. The Guidelines adopt internationally recognized tools including the SSNIP test (hypothetical monopolist test) and the SSNDQ test (quality-based analysis for digital markets), giving the UAE framework flexibility for modern business models. Market definition sits at the foundation of any competition analysis: an authority cannot meaningfully assess market power, dominance, restrictive agreements, or the effects of an economic concentration without first identifying the market in question. Under the Competition Law, the relevant market has two connected dimensions: the relevant product market, comprising goods or services regarded as interchangeable or substitutable by reason of their prices, characteristics, and intended use; and the relevant geographic market—a physical or digital place where supply and demand converge under similar competitive conditions. Under Cabinet Decision No. 3 of 2025, a dominant position is established where an undertaking holds a market share exceeding 40% of total transactions in the relevant market. Businesses preparing merger control filings, exemption applications, or competition complaints should address market definition early. Article 10 of the Executive Regulations requires detailed market studies and economic analysis.