UAE cement price controls are successful

29 October 2008
Price and production agreements with local cement suppliers helped maintain supplies and cap prices in the UAE construction market since the summer of 2008, under-secretary at the UAE Economy Ministry Mohammed al-Shihhi told MEED’s Cement & Concrete 2008 conference in Dubai on 29 October.

“Under a memorandum of understanding signed with local suppliers, production of 50-kilogram sacks was raised from 150,000 a day to no less than 250,000 sacks a day, while also reducing the price of 50kg cement sacks from AED17 [$4.6] to AED16,” said Al-Shihhi.

Analysts say UAE cement demand is currently 70,000 tonnes a day, equivalent to more than 25 million tonnes a year.

Al-Shihhi said the ministry would continue to work with local suppliers to ensure the market was adequately supplied and prices kept under control.

“The Ministry of Economy has also signed a memorandum of understanding with local government departments in order to watch the market and prevent any exploitation which could negatively affect the local market and the UAE’s commitment to a free economy,” he said.

“The ministry will continue to combat all monopolistic activities which contradict the open nature of the national economy and negatively affect free market principles.”

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