While many were fast asleep after a night of New Year’s Eve revelry, shop workers across the country hurried to change price tags on products before the 7am VAT deadline.
At Spinneys in Abu Dhabi, two staff members worked deftly to update prices to reflect the 5 per cent increase which came into effect on Monday.
The Khalidiya branch, which is ordinarily open 24 hours a day, was closed between 12.30am and 5am, seemingly to complete the task.
At 6.30am, one staff member, who was changing prices on cosmetics, said most of the labels had already been updated but assured “if you have any doubt or don’t find a tag on an item, you can ask me for the price.”
Across the supermarket, her colleague worked on relabelling fruits and vegetables.
The supermarket was empty with no early shoppers roaming the aisles to catch the last minutes of pre-tax prices.
A few hours later, Cheelin Lemoine, a home maker, eyed the almond milk display carefully.
“I have been (standing) here for the last five minutes, I just don’t understand, my regular almond milk is usually around fifteen dirhams and I was trying to figure out why it is now seventeen,” said the 28-year-old Australian.
When she realised the increase was the result of VAT, she began calculating her options.
“I am thinking maybe I should get a cheaper one? I can get this other brand for Dh15.25, it is for my husband so I don’t know.”
“I think I will just go with this one,” she said, lifting the cheaper option off the rack. “If he doesn’t like it too bad.”
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Read more:
Shopping boom in Dubai as consumers cash in ahead of VAT
How VAT in the UAE will affect you
Consumer watchdogs ready to crack down on VAT overcharging
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Ms Lemoine said she would have to begin comparing prices of products because of the increased cost of living.
“Usually we didn’t care to compare prices, but now even if it is one or two dirhams cheaper, we will take the cheaper.”
She had five or six items left on her list, “They are all food stuff so a necessity, I can’t cut out on that,” she said.
“Now we have to eat out less, so I have to buy more things here.”
Iman Abdullah, a chemical clinicist, said she did not notice much difference in price after VAT but was annoyed by shops that advertised their products ahead of tax as an excuse to clear surplus stock.
She suggested that supermarkets instead offer discounts to compensate consumers for the mandatory tax, “and this is a win/win for them because they will sell more.”
Ms Abdullah filled her trolley with her “usual items”, a box of coffee, biscuits, butter and other food items.
“I don’t like to pile up things, so I will just buy what I need when I need it, there was no point of overbuying ahead of the tax,” she said.
“I even asked my daughters last night if they wanted to shop ahead of VAT, they said no need,” the 47-year-old Lebanese woman said.
“Maybe people who like to stock up will feel a major difference with the tax.”
Ms Abdullah said VAT was not without its perks however.
“In a way, there is a positive outcome from all of this, now one has to think more about what to buy,” she said.
On Monday, the Ministry of Finance said the Federal Financial System had been updated and was ready to manage all financial transactions related to VAT.
Younis Al Khouri, Undersecretary at the Ministry, said it was facilitating the implementation by having a technical support team on hand as well as a toll-free telephone number dedicated to responding to VAT-related inquiries from federal entities linked to the Federal Financial System.
"This will support MoF in achieving its vision of becoming a global leader in the fiscal field and to contribute to achieving UAE Vision," he said.
In Dubai, prices at Carrefour’s Remraam branch were updated before the supermarket opened for business.
“The pricing has been done in advance in the previous two weeks,” said store manager Binu John.
“There were just about 200 items that we needed to change the price of today,” he said.
Prices were changed over the course of the past month so staff could physically update labels on products on Monday.
Mr John said all Carrefour stores had prepped for VAT in the same way but intended to keep some prices the same to remain competitive.
“All of the negotiations were done at head office, and we have not been involved in that,” he said, adding that the new prices are also now reflected in their internal system.
“It has been clear for our customers to see the right price is in place.”
The supermarket was quiet on Monday morning but Mr John said that was not unusual for the time of year.
“January 1 has been very quiet, as many people are outside or away,” he said.
A price comparison of products conducted by The National before and after the implementation of VAT showed increases of between 5 and 7 per cent on some items and up to 60 per cent increases on imported produce. It is unclear whether or not prices were affected by prior sales or shortages of stock abroad, or had been discounted prior to the introduction of VAT.
Products such as bread and milk had their prices adjusted by 5 per cent while items like yogurt and lentils increased by 7 per cent on Monday.
Surprisingly, some products dropped in price — such as beef tomatoes from the Netherlands which decreased by 30 per cent.
In demand ingredients such as Ghee had been cleared off shelves entirely.
Every taxable item was marked with a T on the supermarkets’ receipts. A breakdown of the total value of taxable items was also printed at the bottom.
Azza Al Khoury, a mother of four girls aged between one and 15, was waiting to see the impact on her bill while shopping at Carrefour in Marina Mall.
“I will know at the cashier,” she said.
Ms Al Khoury estimates it currently costs Dh3,500 a week to feed a household of eight — including her husband, three nannies and driver.
“If we need to improve our country, we have to do it. The government gives a lot to us, but we don’t know how long they can give for”.
Profile box
Founders: Michele Ferrario, Nino Ulsamer and Freddy Lim
Started: established in 2016 and launched in July 2017
Based: Singapore, with offices in the UAE, Malaysia, Hong Kong, Thailand
Sector: FinTech, wealth management
Initial investment: $500,000 in seed round 1 in 2016; $2.2m in seed round 2 in 2017; $5m in series A round in 2018; $12m in series B round in 2019; $16m in series C round in 2020 and $25m in series D round in 2021
Current staff: more than 160 employees
Stage: series D
Investors: EightRoads Ventures, Square Peg Capital, Sequoia Capital India
TECH%20SPECS%3A%20APPLE%20WATCH%20SERIES%208
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Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
Company%C2%A0profile
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NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
The specs
Common to all models unless otherwise stated
Engine: 4-cylinder 2-litre T-GDi
0-100kph: 5.3 seconds (Elantra); 5.5 seconds (Kona); 6.1 seconds (Veloster)
Power: 276hp
Torque: 392Nm
Transmission: 6-Speed Manual/ 8-Speed Dual Clutch FWD
Price: TBC
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- 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
MATCH INFO
Inter Milan 2 (Vecino 65', Barella 83')
Verona 1 (Verre 19' pen)
Specs – Taycan 4S
Engine: Electric
Transmission: 2-speed auto
Power: 571bhp
Torque: 650Nm
Price: Dh431,800
Specs – Panamera
Engine: 3-litre V6 with 100kW electric motor
Transmission: 2-speed auto
Power: 455bhp
Torque: 700Nm
Price: from Dh431,800
COMPANY PROFILE
Name: Grubtech
Founders: Mohamed Al Fayed and Mohammed Hammedi
Launched: October 2019
Employees: 50
Financing stage: Seed round (raised $2 million)
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In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Company%20Profile
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The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
COMPANY%20PROFILE
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Profile of Hala Insurance
Date Started: September 2018
Founders: Walid and Karim Dib
Based: Abu Dhabi
Employees: Nine
Amount raised: $1.2 million
Funders: Oman Technology Fund, AB Accelerator, 500 Startups, private backers
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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
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
The specs: 2018 Jeep Grand Cherokee Trackhawk
Price, base: Dh399,999
Engine: Supercharged 6.2-litre V8
Gearbox: Eight-speed automatic
Power: 707hp @ 6,000rpm
Torque: 875Nm @ 4,800rpm
Fuel economy, combined: 16.8L / 100km (estimate)
DUNE%3A%20PART%20TWO
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Small%20Things%20Like%20These
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The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
Torque: 850Nm
Transmission: Single-speed automatic
Price: From Dh359,900 ($98,000)
On sale: Now
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
THREE
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COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Plan to boost public schools
A major shake-up of government-run schools was rolled out across the country in 2017. Known as the Emirati School Model, it placed more emphasis on maths and science while also adding practical skills to the curriculum.
It was accompanied by the promise of a Dh5 billion investment, over six years, to pay for state-of-the-art infrastructure improvements.
Aspects of the school model will be extended to international private schools, the education minister has previously suggested.
Recent developments have also included the introduction of moral education - which public and private schools both must teach - along with reform of the exams system and tougher teacher licensing requirements.
The biog
Name: Dhabia Khalifa AlQubaisi
Age: 23
How she spends spare time: Playing with cats at the clinic and feeding them
Inspiration: My father. He’s a hard working man who has been through a lot to provide us with everything we need
Favourite book: Attitude, emotions and the psychology of cats by Dr Nicholes Dodman
Favourit film: 101 Dalmatians - it remind me of my childhood and began my love of dogs
Word of advice: By being patient, good things will come and by staying positive you’ll have the will to continue to love what you're doing
UAE currency: the story behind the money in your pockets
BIO
Favourite holiday destination: Turkey - because the government look after animals so well there.
Favourite film: I love scary movies. I have so many favourites but The Ring stands out.
Favourite book: The Lord of the Rings. I didn’t like the movies but I loved the books.
Favourite colour: Black.
Favourite music: Hard rock. I actually also perform as a rock DJ in Dubai.
Five%20calorie-packed%20Ramadan%20drinks
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SERIE A FIXTURES
Friday (UAE kick-off times)
Sassuolo v Bologna (11.45pm)
Saturday
Brescia v Torino (6pm)
Inter Milan v Verona (9pm)
Napoli v Genoa (11.45pm)
Sunday
Cagliari v Verona (3.30pm)
Udinese v SPAL (6pm)
Sampdoria v Atalanta (6pm)
Lazio v Lecce (6pm)
Parma v Roma (9pm)
Juventus v Milan (11.45pm)
Killing of Qassem Suleimani
Biog
Mr Kandhari is legally authorised to conduct marriages in the gurdwara
He has officiated weddings of Sikhs and people of different faiths from Malaysia, Sri Lanka, Russia, the US and Canada
Father of two sons, grandfather of six
Plays golf once a week
Enjoys trying new holiday destinations with his wife and family
Walks for an hour every morning
Completed a Bachelor of Commerce degree in Loyola College, Chennai, India
2019 is a milestone because he completes 50 years in business
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
