By Andy Sambidge
UAE's Ministry of Economy in deal with retailers to lower price on new stocks due in New Year.
The price of basic food items is set to drop by up to 25 percent in January, a top UAE consumer protection official has claimed.
The Ministry of Economy has reported reached an agreement with major retailers in the country to reduce prices of commodities as soon as their current stock runs out and new one arrive.
Dr Hashim Al Nuiemi, director of the Consumer Protection Department at the Ministry of Economy, said in comments published by UAE daily Khaleej Times on Monday that he expected prices to drop by 25 percent.
He added: “We will hold a meeting with them (retailers) very soon to make sure that the current stocks are cleared by January. After this, the prices will be reduced."
Inspectors from the Ministry will be out on the streets to ensure that retailers stick to their commitment to lower prices as per the agreement, the paper added.
Faisal Al Arshi, deputy director of the Abu Dhabi Cooperative Society, said he was expecting a price drop of at least 30 per cent.
This is a good initiative, as food prices are very high in the UAE. I wonder though upmarket retailers like Spinneys will be affected by this proposed ruling?
Why wait until Jan 2009? Commodity prices started dropping a couple of months back, combined with stronger US Dollar. In Oman we witnessed drop in prices of quite a few commodities (except rice) for the past two months and must say, that the trade took initiative to reduce prices, wherever possible, without any push from the ministry! To answer Stephen's query, if Spinneys do not take the heed, why bother? You shop with likes of LuLu and C4. They have their own loyal clientele with whose patronage they can survive!
It is a very good initiative, wonder when Dubai will impose a tax on profit to create a real economy where everybody pays the bill and practices of price fixing and hiking prices without any justifiable reason comes to an end.
Appreciate the decision by the concerned authorities and would like to offer all paise for this good decision.
What a wonderful news. thanks but no thanks.When will our ears ring with a more wonderful news from Dubai /Shj Building owners that Rents have been slashed by 50%.When property sales are @ 5% Wow.