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Myla, a Dubai resident, nearly tripped over her feet in surprise the other day. The price of her favourite brand of rice had gone up to Dh32.50 per five kg. The last time she bought rice, barely a month ago, it was selling for Dh17.
Thinking that there had been a mistake in pricing, she called the attention of the storekeeper, who could only confirm the bad news: "that's no mistake, madame. The price of rice is now high like the sky." Poetic but daunting.
It's not the only problem bugging Myla and many of her fellow consumers in the UAE (i.e. pretty much all of us).
Eight in 10 UAE residents have been hit by a rent increase in the past year, according to one study. Some also expect the prices of most basic services and foodstuffs to rise by a further 27 per cent.
We've been down this road before, but you have to notice that the travelling doesn't get any easier. On the contrary.
With rents and food prices soaring, professionals are using up an ever-growing portion of their salaries. The remaining disposable incomes of many expats have fallen. While many complain they can hardly save, there are others whose incomes are not even enough to cover living costs. Indebtedness rises, as another columnist highlights.
GulfTalent.com, an online recruitment company, says nearly half the expatriates in the UAE are unable to make any savings. That's a stark statistic, given the presumed, original rationale for being here. The proportion of "non-savers" is actually said to be highest in the region. Then there's a worrying nine per cent who are forced to borrow or live off their existing capital.
Ironically, the inability to save is aggravated by the fact that the UAE is awash with spending opportunities. Retail shops, restaurants, recreational facilities, bars and other forms of entertainment abound. In a city where there are more social liberties than in any other country in the region, spending is tempting. More often than not, saving takes a back seat.
Alternatives
Since higher saving potential has traditionally been the chief reason for working here, the rising cost of living, eating an ever-larger portion of residents' budgets, and the declining dollar eroding the value of their salaries, mean that a proportion of expats are now considering going elsewhere.
Yes, Dubai is an exciting place to live and work in. The city is cosmopolitan; the economy is vibrant and growing; the corporate environment is tax-free. All these create a magnet for jobseekers.
It should be said that the UAE - Dubai in particular - still enjoys immense popularity, still the choice of destination for many people seeking to work in the Gulf.
Yet, the expensive living costs, combined with the falling dollar, is likely to be tarnishing the appeal to a larger audience.
The last few years have seen other non-GCC countries offering competitive career opportunities. For the UAE and this region generally, the battle to attract and retain skilled professionals may prove to be an expensive task. That's because inflation doesn't confine itself; it usually spreads, and it matters.
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