60% consider move due to rising costs

People are contemplating moving away from the UAE because of the rocketing cost of living, a poll by Arabian Business reveals.

Nearly 60 percent of people who responded to our vote on Sunday were so fed up with rising prices in the region that they said they were reconsidering their future in the region.

A further 28 percent admitted they were struggling to cope on their monthly budgets as food and property costs continue to spiral.

Last month, the Ministry of Economy said that inflation in the UAE had accelerated to 11.1 percent last year, up from 9.3 percent in 2006.

The problem was primarily driven by rental and housing costs, which jumped 17.5 percent, followed by goods and services, which rose 16.8 percent.

Increases in the average prices of other expenditure items on the consumer price index (CPI) ranged from three percent to eight percent, the Ministry said.

Analysts have predicted inflation could touch 11.8 percent in 2008, fuelling further fears among Arabian Business readers.

In our poll, just over two percent of respondents said they believed the UAE still provided a value-for-money place to live while a further nine percent said they had noticed the rise in the cost of living but that it did not worry them.

On Sunday, Abu Dhabi launched a new index to monitor price trends of essential commodities.

The index will be published monthly initially and will contain the prices of various commodities recorded at major stores around the city.

Print | Email | Discuss this article |

READERS' COMMENTS

View all comments (4)

Have your say

not just labourers hit
Posted by christine, Dubai, UAE on Sunday 20 July 2008 at 18:28 UAE time

I am a young, European expat. Because I'm at an early stage of my career my income is low, yet I have to pay the same rent a everybody else. Dubai is not a place to stay if you are young, value privacy of a home and want to live close to your work. I am still too young to get a loan, but unlike most other young people here, I do not have the financial support of my parents to get a fancy car or marina apartment. My parents agreed to lend me the money for a car, since the bank refused cos i'm under 21.
But my salary is so low and my rent is so high that I can't even pay them back this year. Here's my suggestion: Dubai really needs dynamic, young people to keep up the drive of this place, so why not create low cost rental options for people under a certain age? They do that elsewhere in the world why not in Dubai?

high cost of everything
Posted by AAMIR, SHARJAH, UAE on Sunday 20 July 2008 at 13:03 UAE time

It's time when people should start using the idea, money and influence in their own countries. Race is on by the rich to but all possible land on earth especially the develop countries. As usuals slavery is finding way into the arab world after other immoral activities which are getting here.

One cannot plan a life with his family in UAE. GOD knows tommorow they will throw you out of your own home, without any job or money left someday we have to leave UAE, then why not today, Moreover our countries are booming. I strongly believe all indians must leave UAE/gulf immidiately.

exteme inflation
Posted by abdul mateen, sharjah on Wednesday 16 July 2008 at 11:59 UAE time

Sharp increase in rents, food prices and traffic congestion are getting worse day by day, forcing expatriates to consider moving out of UAE. The increase in consumer prices, rents, etc are exhorbitantly affecting the major chunk of expatriates, irrespective of income group. Failing to curb rising prices/rents, will adversely affect UAE, which the authorities are failing to realise now.

Moving away from the UAE
Posted by Sebastian, Sharjah, UAE on Monday 14 July 2008 at 17:33 UAE time


In don’t think that in reality, anybody would move out as there is continuous aspiration for making more money. People will cut spending, lower their standards of living or worst - take shortcuts for meeting both ends leading to erosion of quality of life.
Only lower class workers will be affected & can cause a dearth of manpower – leading to higher cost of labour which in turn shall affect the construction boom spiraling more inflation.

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Security Code *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM