UAE Ministry of Economy approves Uber-Careem deal

The UAE’s Ministry of Economy has formally approved Uber’s $3.1 billion acquisition of Careem.

It found that the deal between the firms will not lead to unfair competition or market dominance.

Under the Competition Law, companies operating in the Emirates are required to submit a formal request before completing a merger or acquisition.

The UAE's Minister of Economy, Sultan bin Saeed Al Mansouri said that the integration of expertise, competencies and modern technologies ultimately serve the interests of consumers and serve the progress of the transport sector in general.

He added that the UAE continued to follow an open economic approach, which was recently reinforced by the issuance of a law that allows foreign investors up to 100 per cent ownership in selected sectors and economic zones.

Uber announced the purchase of Careem in March, in a deal that includes $1.4 billion in cash and $1.7 billion in convertible notes.

The two ride-hailing apps are still working with other governments in the region to have the deal approved.