Ministry of Economy signs MoU with Carrefour to control prices

DUBAI — The UAE Ministry of Economy (MoE) and MAF Hypermarket (Carrefour) have signed yesterday a Memorandum of Understanding (MoU) that will see Carrefour fix the prices of several basic food commodities throughout 2008. The move is part of a series of initiatives to implement the first phase of a programme wherein Carrefour will retain the 2007 prices of around 52 prime commodities in the UAE.

By A Staff Reporter

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Published: Fri 18 Apr 2008, 11:18 AM

Last updated: Sun 5 Apr 2015, 11:40 AM

Mohammed bin Abdul Aziz Al Shihhi, Undersecretary, MoE; and Henri Changeux, Senior Vice-President of Carrefour, have signed the MoU at the Ministry’s offices in Dubai.

“The signing of the memorandum of understanding with Carrefour is the result of discussions and cooperation between the two parties, and is in line with the continuous efforts by the ministry to stabilise prices, reduce inflation levels, maintain market balance and protect the consumer. It is also part of a series of initiatives implemented recently by the Ministry that aim to encourage private sector companies and cooperative unions to support the Ministry’s call to fix prices of basic food products and sell them at cost prices,” said Mohammed bin Albdul Aziz Al Shihhi, Undersecretary, MoE.

“This initiative emphasises the social responsibility of the private sector and is in line with the directives of His Highness Shaikh Khalifa bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi, and His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai. It also promotes cooperation between the government and private sectors in pushing economic and social development in the country,” added Al Shihhi.

Al Shihhi also stressed that maintaining market stability and protecting consumers is not the sole responsibility of the ministry, but a joint responsibility wherein federal and local-level government efforts are integrated with initiatives by the private sector and civil institutions in order to eradicate negative practices that affect consumers, the society and the national economy. Al Shihhi also indicated that as inflation is an international phenomenon experienced by all countries, the Ministry, in cooperation with the other concerned authorities, will continue to combat any form of monopoly or exploitation that may threaten market stability.

Al Shihhi also emphasised that through the MoU with Carrefour, which is one of the largest companies in the wholesale and retail sector, the Ministry will leverage the two parties’ qualified workforce, technical equipment, advanced technology, and scientific and practical experience to protect the consumers and maintain price stability in the UAE’s wholesale and retail sectors, in addition to developing new competitive markets that are free of monopolies and illegal practices, and where quality, safety and competitive prices prevail.

Under the MoU, Carrefour will fix prices of 52 basic food commodities at 2007 price levels. The goods include four types of rice, three types of egg, three types of milk, four types of frozen chicken, 10 types of fresh chicken and bread, two types of meat, two types of tomato paste, three types of sugar and salt, two types of vegetable oil, six types of macaroni, two types of beans, two types of tea, two types of water and four types of flour.

The parties are also working to undertake the necessary procedures to support stability of the wholesale and retail sectors as per the laws and regulations applicable in the UAE.

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