​
 Providing licenses for the establishment of workshops that are not affiliated with car dealers that are involved in vehicle after-sales services
Accredited workshops are entitled to offer all maintenance services to services center affiliated to the agent
The dealer shall refrain from restricting continuous warranty coverage to carrying maintenance works at the agent’s workshop and its service centers
Clients can carry out maintenance and repair works at the workshop of their choice
The Ministry abolished restrictions tying warranty coverage to carrying maintenance works at the agent’s workshop to allow vehicle owners to choose where to conduct maintenance or repairs works
The dealer shall only void the warranty on car parts that were proven to be damaged due to maintenance works conducted at a third party or non-accredited workshop. Once it is proven, the warranty does not cover the damaged parts only.
Accredited and third party workshops shall be free to import spare parts from local suppliers including the dealer and his affiliated distributors as well as international suppliers
Local dealers and exclusive distributors shall not adopt any discriminatory policies in terms of supplying spare part and shall allow accredited workshops to import spare parts as per the specifications set by the manufacturer.
​Click here for the initiative design

As part of its efforts to develop the automotive industry, promote competition in terms of maintenance and repair services and create a competitive environment that gives clients freedom of choice within the areas related to car maintenance, warranty and spare parts and incentivizes workshops to improve the efficiency and quality of their services, the Ministry of Economy and Commerce has announced its initiative to end monopoly and bolster competition in the automobile market which falls in line with Ministerial Decree No. (418) of 2016 which regulates conditions and standards of licenses for establishing certified workshops that are not affiliated with car dealers and supporting fare competition within the sector of before and after car-repair services.

The decree includes clear provisions pertaining to the different stages of the licensing application for the establishment of accredited workshops and outlines the procedures to be followed in order to obtain accreditation and the party responsible for granting it. The decree also identifies the competent ministerial authorities tasked with supervising the process and regulates the relationship between manufacturers, local dealers, and accredited workshops in terms of training, providing technical support for car upgrades, the conditions for spare parts provision and the nature of maintenance services as well as the process entitled by the certified workshops to carry out on the concerned brand cars.
​

Ending monopoly in terms of maintenance services
The initiative puts an end to monopoly in terms of providing maintenance services and repair works, enabling clients to carry out maintenance at the workshop of their choice.
The ministry said clients can choose between three workshops: The dealer’s workshop, which is a maintenance service center affiliated to the dealer and specialized in repairing vehicles of the brand represented in the local market; accredited workshops, which are service centers owned by a third party i.e.  Not affiliated with car dealers but certified by the manufacturer of the brand car; and third party workshops such as garages.
As part of its initiative, the ministry decided the following:To compel car agents to refrain from restricting warranty coverage to carrying maintenance works at the agent’s workshop and service centers in a bid to allow clients to carry out maintenance and repair works at the workshop of their choiceThe client has the right to conduct maintenance and repair works at the workshop of his choice provided that he retains invoices as evidence of performing maintenance on schedule in case it was carried out at a third party workshopThe dealer shall only void the warranty on parts that were proven to be damaged due to maintenance works conducted at third-party workshops. Once it is proven, the warranty does not cover the damaged parts only.
 
Ending monopoly in terms of car warranties
The initiative gives consumers the freedom to choose the maintenance service center without voiding their car warranty and compels dealers to comply and accept the provisions of Law No. (19) of 2006 on consumer protection and anti-monopoly practices without reserving the warranty terms of the initiative to ease monopolistic restrictions by the dealer as follows:The ministry abolished restrictions tying warranty coverage to carrying maintenance works at the agent’s workshopThe ministry eliminated ambiguous and restrictive expressions from warranty booklets to enable vehicle owners to conduct maintenance or repairs works at the workshop of their choice within the warranty period.The ministry barred the dealer from introducing any amendments to warranty booklets without its prior consent.
Ending monopoly in terms of supplying spare parts
In order to guarantee fair practices and enhance competitiveness in spare parts supply, the initiative regulates the relationship between manufacturers, local dealers, distributors, accredited workshops and independent service centers to prevent monopolistic or discriminatory practices, as follows:Accredited and third party workshops shall be free to import spare parts from suppliers including local agents and distributors affiliated to the agent as well as international suppliersThe manufacturer and its local agent shall refrain from introducing any terms that deny accredited workshops the right to choose their spare part supplierLocal agents and their affiliated distributors shall not differentiate between affiliated and accredited workshops in terms of spare part specificationsVehicle owners are allowed to use spare parts equivalent to or having the same characteristics as original parts, provided that these parts are accredited by the manufacturer
 
The Ministry of Economy and Commerce stressed that this initiative will boost the automotive sector and contribute to bolstering competitiveness and the quality of services provided to clients. The ministry urged all consumers to carefully weigh their options and to retain invoices that document maintenance works whether these services were conducted at the dealer’s workshop, an accredited workshop or a third party service center.