UAE tells retailers to slash prices for Ramadan

The United Arab Emirates economy ministry called on retailers to slash costs of basic commodities by 20 to 50 percent during the Muslim fasting month of Ramadan, Reuters reported on Tuesday citing Arab newspaper Al Bayan.

“The ministry has given all selling outlets a period of two weeks to present their final offers for (prices of) commodities during Ramadan,” the daily cited Hashem Al Nuaimi, head of consumer protection at the UAE economy ministry, as saying.

“[The ministry is] advising that the discount offers range between 20 and 50 percent,” Mr. Nuaimi added.

The government also instructed retailers not to impose additional fees on credit card payments as of July 1, Al Bayan said.

Food prices usually skyrocket during Ramadan, which starts in August this year, when there are more family gatherings and catered events to celebrate daylight fasting in the holy month.

Last year, Abu Dhabi’s inflation rate accelerated to 3.59 percent in the first eight months of the year compared with the same period the previous year, after food costs jumped during Ramadan.

Statistics Center Abu Dhabi (SCAD), which released the data, said food prices had the biggest increases, including a 35.4 percent rise in “sugar, jam, honey, chocolate and confectionery,” a Gulf daily reported.

Bahrain also registered a 2.4 percent rise in its inflation rate in the first eight months of 2010 compared with the same period the previous fiscal year because of food prices.

Meanwhile in Egypt, a report by the Consumers' Protection Agency highlighted a steep jump in the prices of 11 commodities sold at supermarkets during Ramadan last year.

Rice rose by 32 percent to reach 4.85 pounds ($0.81) per kilogram and sugar saw an increase of 30 percent to reach an average 4.55 pounds per kilogram. The price of eggs spiraled up by 43 percent. The cost of government subsidized food for the poor had also gained.

This year, Middle East commodity prices are being heavily analyzed against the political backdrop of wide popular unrest.

The World Bank reported last month that global food prices have soared 36 percent above their levels a year ago, fuelled partly by unrest in the Middle East and North Africa.

High food prices had initially motivated the unrest, which disrupted the supply of food even further.

Last month, the UAE government said it planned to combat rising global commodity prices by fixing the cost of about 400 foodstuffs and household products at 70 outlets.

The UAE is the second largest Arab economy (after Saudi Arabia) with an annual GDP of $199.8 billion and a GDP per capita of $40,200. The Gulf State has avoided the political unrest that has hit nearby Oman, Bahrain and Yemen.

(Eman El-Shenawi, a writer at Al Arabiya English, can be reached at: [email protected].)