ABU DHABI // Average food prices in the capital increased in the first week of Ramadan, part of a broader increase in which the cost of some items surged by more than 17 per cent in the past month, according to an official report.
The price of some staples rose by an average of 0.4 per cent in the first seven days of Ramadan, according to the report, issued yesterday by the Statistics Centre-Abu Dhabi (SCAD).
It noted a rise of 1.5 per cent in the cost of bread and cereals in the seven days, 0.4 per cent in fruit juices, and 1.5 per cent in sugar, jam, honey, chocolate and confectionery. However, meat and seafood prices were down 0.2 per cent and 0.3 per cent, respectively.
But the price changes for August overall are more striking. The price of fish and other seafood increased by 5.2 per cent; pulses and dry grains were up by more than 17 per cent; and sugar, jam, honey, chocolate and confectionery by almost 16 per cent.
Some shoppers stocking up on staples for iftar meals have noticed the increases. Mohamed al Za'abi, 43, an Emirati government worker, said more should be done to prevent companies raising food prices.
"There has to be an increase in oversight on them," he said. "The authorities should take action."
The report is part of a weekly briefing that tracks changes in the SCAD's Food Price Index.
The increases have also come despite a campaign by the Ministry of Economy to control prices throughout Ramadan.
Two weeks ago, the ministry said it would organise spot checks by inspectors to curb price increases during the holy month, when families traditionally gather for meals, and would try to raise consumer awareness about food prices. Mr al Za'abi said he tried to shop more often at co-operatives because prices in some of the larger supermarket chains, especially during Ramadan, were "excessive".
A ministry initiative launched in 2006 allowed consumers to buy bundles of essential goods for a low price during Ramadan. The Government said that packages that include flour, milk, oil, rice, sugar, dates and water should cost around Dh150 (US$40).
The consumer protection department at the ministry could not be reached for comment on the increases noted by SCAD.
Um Khalid, a Sudanese translator who was shopping at the Abu Dhabi Co-operative Society yesterday, said she had not noticed changes in prices since Ramadan began but complained that food staples were already priced too high.
"At the moment, the prices of dates for example, are not reasonable, especially in the holy month," she said. "Things are already expensive."
Wiam Mohamed, a Palestinian housewife, said that her husband usually did the shopping but that she had noticed a difference in their Ramadan shopping costs.
"The last time, I was shocked at the bill. I didn't think we bought so much stuff," she said.
Others said shopping behaviour meant the impact would be more pronounced for those people who bought a lot during Ramadan.
"Ramadan is the same every year; we just get what we need. If there's a change, it's a change of 50 fils or 75 fils usually.
But if someone is used to buying a lot of things for Ramadan, they will notice a change," said Um Adnan, a Bahraini housewife living in the UAE. She said that with the exception of fruits, foodstuffs did not seem to be more expensive overall.
"What I noticed here, the fruits are really expensive in Ramadan. Apricots will increase from Dh18 for a kilo to Dh25 or Dh30," she said. "And if you buy, the top is good and the bottom is small or not good.
"Are you only supposed to buy one or two pieces? What if you have a family?"
newsdesk@thenational.ae
Abu Dhabi traffic facts
Drivers in Abu Dhabi spend 10 per cent longer in congested conditions than they would on a free-flowing road
The highest volume of traffic on the roads is found between 7am and 8am on a Sunday.
Travelling before 7am on a Sunday could save up to four hours per year on a 30-minute commute.
The day was the least congestion in Abu Dhabi in 2019 was Tuesday, August 13.
The highest levels of traffic were found on Sunday, November 10.
Drivers in Abu Dhabi lost 41 hours spent in traffic jams in rush hour during 2019
The Bio
Name: Lynn Davison
Profession: History teacher at Al Yasmina Academy, Abu Dhabi
Children: She has one son, Casey, 28
Hometown: Pontefract, West Yorkshire in the UK
Favourite book: The Alchemist by Paulo Coelho
Favourite Author: CJ Sansom
Favourite holiday destination: Bali
Favourite food: A Sunday roast
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
TEACHERS' PAY - WHAT YOU NEED TO KNOW
Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:
- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools
- average salary across curriculums and skill levels is about Dh10,000, recruiters say
- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance
- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs
- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills
- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month
- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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- Premier League-standard football pitch
- 400m Olympic running track
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- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
