Posted by: Pradeep | March 22, 2008

Where are the prices heading in UAE?

I have been travelling to Gulf for 6yrs and living in Dubai fo 4yrs now. I have seen this region progressing backed by soaring oil prices worldwide. The oil has created abundant wealth in the region (albeit in hands of few). This gets reflected in the construction boom in the region. The construction sector is building itself up to cater to richie rich. It leaves little room for middle class to have any class as such.

In last 4yrs the food stuff has become atleast 3times in cost with falling quality. Recent visits to hypermarkets like Carrefour, Geant have taken us for surprise as we found regular good quality stuff is just off the shelves and low quality stuff has taken the space at higher prices. No surprise the newspapers are flooded with articles on food packets coming with insects, alien matter etc.

Ministry while is trying to impose restrictions on hike in prices (which have become must due to falling AED against all other major currencies due to AED-USD pegging), it can’t do anything on quality being served to people.

Isn’t it that the solution is in becoming more prudent in improving import costs by going for revaluation?

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