The buyout of UAE-based ride-hailing service Careem by international transportation network giant, Uber, has been given the greenlight by the country’s Ministry of Economy.
This means that the planned merger between the two companies can go ahead, paving the way for one of the biggest buyouts in the local start-up scene.
Under the UAE’s Competition Law, companies must submit a request to the Ministry of Economy before merging with another firm.
This ensures that the partnership will not lead to unfair competition in the marketplace and avoids overcharging of customers, due to lack of options.
“The UAE is now a regional destination that attracts and embraces start-ups based on young and innovative ideas by supporting and promoting entrepreneurship,” said MoE head, Sultan bin Saeed Al Mansouri.
“It also provides state-of-the-art infrastructure, legislative and technological systems that serve the ambitious orientations and vision of the country in building a diversified and sustainable economy.”