‘No one is thinking about Covid’: consumers concerned by high prices ahead of Ramadan 2022



For millions of Muslims around the globe, Ramadan has been upended for two years running by the Covid-19 pandemic.

But this year, amid regional conflicts and price rises, people across the Middle East say they have bigger concerns.

“This Ramadan, no one’s thinking about Covid,” construction worker Ahmed El Gizawy told The National in Cairo. "What is on everyone’s minds are the rising prices nationwide. Even bread is expensive now. Many people, me included, are really struggling under this strain."

In Baghdad, Iraq, Ahmed Ali, a government employee, emerged from a hypermarket carrying one small plastic bag.

“All prices are up and we are just weeks ahead of Ramadan,” the government employee said.

War in Ukraine and currency crunches send prices skywards

The war in Ukraine has sparked a rise in prices of basic goods, particularly those made with wheat or oil.

The price of bread in Egypt has increased by up to 50 per cent in light of the Russia-Ukraine war. This Ramadan, the largest loaves will cost about 1.5 Egyptian pounds, up from 1 pound last year.

“Many Egyptians, particularly the lower classes, forgot about Covid-19 long ago. I think they began treating it like it was the will of God and they continued with their lives. It was only a big problem for people during the lockdown, when they couldn’t work or feed their families.”

Mr El Gizawy said that rising fuel prices had delayed a lot of construction projects. He was been at home, waiting for the construction site where he works to start back up again, with colleagues constantly calling him in fear of losing their jobs.

In Jordan, 14 litres of cooking oil has soared in from $24 to $32 in the past month. A 10-kilogram bag of rice rose in price by $3, to $15.

Lina, a Jordanian mother of two, said her extended family had been buying extra rice, meat, sugar and oil, and stocking up on gas cylinders for cooking.

We have felt the pinch and I can estimate the impact on my budget at about 30 per cent, and that will be reflected in what I’m going to buy
Ahmed Ali,
Iraq

“This is the first Ramadan since Covid where families can eat together, so people are buying more,” she said.

The recent currency devaluation due to significant decline in oil revenue pushed Iraq into a budget deficit by the end of 2020. This combined with the war in Ukraine, has forced the price of some food items up by as much as 50 per cent.

“The soaring in prices has badly hit those with limited income and the middle-class, while the well-off people don’t feel it,” Ahmed Ali, 30, said.

Since late 2020, anger has mounted among the public since the Iraqi dinar fell by about 23 per cent against the dollar. Iraq imports most of its items, food and otherwise.

“We have felt the pinch,” Mr Ali said. “I can estimate the impact on my budget at about 30 per cent and that will be reflected in what I’m going to buy.”

Lebanon braces for the worst Ramadan in decades

Few nations in the region are in as much trouble as Lebanon. It is suffering from the problems affecting other nations, plus the impact of years of economic meltdown.

In Ramadan 2021, the average cumulative monthly cost of iftar for a family of five was two and a half times the country’s monthly minimum wage, the American University of Beirut’s Crisis Observatory Unit found.

”The most basic dishes that we can prepare for Ramadan this year will be crazy-expensive,” said Sawsan Ramadan, an office manager.

“Even hosting or attending gatherings this month will be a financial burden on many.”

Almost 80 per cent of Lebanon’s population lives in poverty, according to the UN. The Lebanese lira has lost more than 90 per cent of its value since October 2019, leaving essentials unaffordable to many.

A raging storm amid electricity shortages are making it difficult for families to keep warm, and exorbitant fuel prices have made transport a luxury.

“If we talk about food and iftar preparations, this year it is very costly and unaffordable. Hosting is not even a thought, because I personally cannot think of having festive season for Ramadan while people are dying of hunger,” Aida Fakhoury, a clinical quality specialist, told The National.

Governments act to reassure citizens

FILE PHOTO: A worker stands near freshly baked bread at a bakery in Beirut, Lebanon March 8, 2022. REUTERS / Mohamed Azakir / File Photo
FILE PHOTO: A worker stands near freshly baked bread at a bakery in Beirut, Lebanon March 8, 2022. REUTERS / Mohamed Azakir / File Photo

Jordanian officials have offered reassurance that the country is well stocked for basic goods, despite high unemployment and a stagnant economy.

A Syrian owner of a large restaurant in Amman with a middle-class clientele said he did not expect much improvement in business this Ramadan, because the past nine months had been slow despite the easing of coronavirus restrictions.

“The economy is in the doldrums and people in general are not spending except on basic goods,” he said.

The Iraqi government has suspended customs duties on food products, basic consumer goods and construction materials for two months. It has said it will pay civil servants and pensioners whose income does not exceed one million dinars (almost $700) a monthly allowance of about $70.

Last week, the Iraqi Trade Ministry said it was in the process of distributing seven-item Ramadan food baskets as part of its subsidy programme. Each hamper contains rice, sugar, cooking oil, tomato paste, beans, lentils and chickpeas. They will be handed out three times over the course of the holy month.

Egypt this week announced a multibillion-pound relief package including tax breaks, wage rises and pensions, as well as a widened state support programme for poor families. The government has also created a special fund of 130 billion Egyptian pounds to mitigate the effects of the Ukraine war on the Egyptian economy.

Covid-19 almost forgotten

Antique shop salesman Omar Ibrahim, 37, doesn’t feel there is any worry over Covid-19 or that any expected restrictions will hamper Ramadan traditions in the Egyptian capital, Cairo.

After peaking in early February with a record 2,301 infections, Egypt’s daily coronavirus cases have been on the decline. The country’s health ministry recently announced its Covid-19 updates would be reduced in frequency from daily to weekly.

“For me this year, Ramadan feels a little different. It’s right around the corner, but there isn’t the usual excitement, because everyone’s attention is on Russia’s war with Ukraine and how it’s making prices here skyrocket “ Mr Ibrahim said.

Why it pays to compare

A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.

Route 1: bank transfer

The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.

Total cost: Dh567.25 - around 2.9 per cent of the total amount

Total received: €4,670.30 

Route 2: online platform

The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.

Total cost: Dh74.10, around 0.4 per cent of the transaction

Total received: €4,756

The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.

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Fixtures

Tuesday - 5.15pm: Team Lebanon v Alger Corsaires; 8.30pm: Abu Dhabi Storms v Pharaohs

Wednesday - 5.15pm: Pharaohs v Carthage Eagles; 8.30pm: Alger Corsaires v Abu Dhabi Storms

Thursday - 4.30pm: Team Lebanon v Pharaohs; 7.30pm: Abu Dhabi Storms v Carthage Eagles

Friday - 4.30pm: Pharaohs v Alger Corsaires; 7.30pm: Carthage Eagles v Team Lebanon

Saturday - 4.30pm: Carthage Eagles v Alger Corsaires; 7.30pm: Abu Dhabi Storms v Team Lebanon

MATCH INFO

Euro 2020 qualifier

Fixture: Liechtenstein v Italy, Tuesday, 10.45pm (UAE)

TV: Match is shown on BeIN Sports

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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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Innotech Profile

Date started: 2013

Founder/CEO: Othman Al Mandhari

Based: Muscat, Oman

Sector: Additive manufacturing, 3D printing technologies

Size: 15 full-time employees

Stage: Seed stage and seeking Series A round of financing 

Investors: Oman Technology Fund from 2017 to 2019, exited through an agreement with a new investor to secure new funding that it under negotiation right now. 

EPL's youngest
  • Ethan Nwaneri (Arsenal)
    15 years, 181 days old
  • Max Dowman (Arsenal)
    15 years, 235 days old
  • Jeremy Monga (Leicester)
    15 years, 271 days old
  • Harvey Elliott (Fulham)
    16 years, 30 days old
  • Matthew Briggs (Fulham)
    16 years, 68 days old
Last-16 Europa League fixtures

Wednesday (Kick-offs UAE)

FC Copenhagen (0) v Istanbul Basaksehir (1) 8.55pm

Shakhtar Donetsk (2) v Wolfsburg (1) 8.55pm

Inter Milan v Getafe (one leg only) 11pm

Manchester United (5) v LASK (0) 11pm 

Thursday

Bayer Leverkusen (3) v Rangers (1) 8.55pm

Sevilla v Roma  (one leg only)  8.55pm

FC Basel (3) v Eintracht Frankfurt (0) 11pm 

Wolves (1) Olympiakos (1) 11pm 

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The specs: 2018 BMW X2 and X3

Price, as tested: Dh255,150 (X2); Dh383,250 (X3)

Engine: 2.0-litre turbocharged inline four-cylinder (X2); 3.0-litre twin-turbo inline six-cylinder (X3)

Power 192hp @ 5,000rpm (X2); 355hp @ 5,500rpm (X3)

Torque: 280Nm @ 1,350rpm (X2); 500Nm @ 1,520rpm (X3)

Transmission: Seven-speed automatic (X2); Eight-speed automatic (X3)

Fuel consumption, combined: 5.7L / 100km (X2); 8.3L / 100km (X3)

SPEC%20SHEET%3A%20APPLE%20IPHONE%2015%20PRO%20MAX
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How much do leading UAE’s UK curriculum schools charge for Year 6?
  1. Nord Anglia International School (Dubai) – Dh85,032
  2. Kings School Al Barsha (Dubai) – Dh71,905
  3. Brighton College Abu Dhabi - Dh68,560
  4. Jumeirah English Speaking School (Dubai) – Dh59,728
  5. Gems Wellington International School – Dubai Branch – Dh58,488
  6. The British School Al Khubairat (Abu Dhabi) - Dh54,170
  7. Dubai English Speaking School – Dh51,269

*Annual tuition fees covering the 2024/2025 academic year

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ARABIAN GULF LEAGUE FIXTURES

Thursday, September 21
Al Dahfra v Sharjah (kick-off 5.35pm)
Al Wasl v Emirates (8.30pm)

Friday, September 22
Dibba v Al Jazira (5.25pm)
Al Nasr v Al Wahda (8.30pm)

Saturday, September 23
Hatta v Al Ain (5.25pm)
Ajman v Shabab Al Ahli (8.30pm)

How to wear a kandura

Dos

  • Wear the right fabric for the right season and occasion 
  • Always ask for the dress code if you don’t know
  • Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work 
  • Wear 100 per cent cotton under the kandura as most fabrics are polyester

Don’ts 

  • Wear hamdania for work, always wear a ghutra and agal 
  • Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Cultural fiesta

What: The Al Burda Festival
When: November 14 (from 10am)
Where: Warehouse421,  Abu Dhabi
The Al Burda Festival is a celebration of Islamic art and culture, featuring talks, performances and exhibitions. Organised by the Ministry of Culture and Knowledge Development, this one-day event opens with a session on the future of Islamic art. With this in mind, it is followed by a number of workshops and “masterclass” sessions in everything from calligraphy and typography to geometry and the origins of Islamic design. There will also be discussions on subjects including ‘Who is the Audience for Islamic Art?’ and ‘New Markets for Islamic Design.’ A live performance from Kuwaiti guitarist Yousif Yaseen should be one of the highlights of the day. 

LIKELY TEAMS

South Africa
Faf du Plessis (captain), Dean Elgar, Aiden Markram, Hashim Amla, AB de Villiers, Quinton de Kock (wkt), Vernon Philander, Keshav Maharaj, Kagiso Rabada, Morne Morkel, Lungi Ngidi.

India (from)
Virat Kohli (captain), Murali Vijay, Lokesh Rahul, Cheteshwar Pujara, Rohit Sharma, Ajinkya Rahane, Hardik Pandya, Dinesh Karthik (wkt), Ravichandran Ashwin, Bhuvneshwar Kumar, Ishant Sharma, Mohammad Shami, Jasprit Bumrah.

UAE currency: the story behind the money in your pockets
The%20specs
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T20 WORLD CUP QUALIFIERS

Qualifier A, Muscat

(All matches to be streamed live on icc.tv) 

Fixtures

Friday, February 18: 10am Oman v Nepal, Canada v Philippines; 2pm Ireland v UAE, Germany v Bahrain 

Saturday, February 19: 10am Oman v Canada, Nepal v Philippines; 2pm UAE v Germany, Ireland v Bahrain 

Monday, February 21: 10am Ireland v Germany, UAE v Bahrain; 2pm Nepal v Canada, Oman v Philippines 

Tuesday, February 22: 2pm Semi-finals 

Thursday, February 24: 2pm Final 

UAE squad:Ahmed Raza(captain), Muhammad Waseem, Chirag Suri, Vriitya Aravind, Rohan Mustafa, Kashif Daud, Zahoor Khan, Alishan Sharafu, Raja Akifullah, Karthik Meiyappan, Junaid Siddique, Basil Hameed, Zafar Farid, Mohammed Boota, Mohammed Usman, Rahul Bhatia

Tips for job-seekers
  • Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
  • Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.

David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East

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Updated: March 23, 2022, 8:40 AM