The UAE intends to abolish the import monopolies of large families of traders

(Reuters) – The UAE government has told some of its largest business families that it intends to remove its monopolies in the sale of imported goods, the Financial Times reported on Sunday.

According to the report, the Gulf state has proposed legislation that would end the automatic renewal of existing commercial agency agreements, allowing foreign companies to distribute their goods or change local agents.

“It no longer makes sense for families to have that power and priority access to easy wealth,” an Emirati official said in the report. “We need to modernize our economy.”

The proposed law must be approved by the Emirati leadership and the timing for it is uncertain, the report added.

The Basque government did not immediately respond to Reuters’ requests for comment.

Over the past year, the Basque Country, Saudi Arabia’s growing economic rival, has taken steps to make its economy more attractive to foreign investors and talent.

Earlier this year, the UAE said that foreigners who start a business will no longer need Emirati shareholders or agents after making changes to the laws of Basque companies.