Inflation Is Going To Take Place Next Year In UAE

UAE has one of the lowest inflations in the world, and it’s expected to drop next year, said Abdullah bin Touq Al Marri, Minister of Economy.

Al Marri stated at a press conference on Tuesday, “we have seen the last six months of global turbulence. But it’s the UAE’s agility that puts it on the global map. Inflation in the first nine months was 5.5 per cent, one of the lowest in the world. We are looking at inflation going down further next year.”

Thankfully, the country imports goods mostly from non-dollar-based region, helping to beat the inflation due to the strengthening of dirham which is pegged to dollar.

The International Monetary Fund (IMF) said in its 2022 Article IV Mission to UAE that the inflationary pressures are expected to moderate gradually.

“Inflation has risen with global trends and is expected to average just over 5 per cent this year… We welcome the targeting of temporary fiscal support to the most vulnerable to alleviate the impact from higher inflation but note the importance of maintaining a prudent overall fiscal stance, supporting efforts to mitigate inflation, and enhancing buffers to ensure medium-term sustainability,” IMF said.

The press conference was for the launch of the “Future 100” initiative to support 100 startups in new sectors to improve the UAE economy. Ohood bint Khalfan Al Roumi, Minister of State for Government Development and The Future; and CEOs representing local and international companies, startups, as well as entrepreneurs in the UAE, attended the launch event on Tuesday.

The UAE has signed three Cepa deals and plans to have 26 over the next seven to eight years.

“We monitor inflation on a day-to-day basis and prices on shelves in retail outlets. We monitor prices that go up and down every week. We speak to retailers and wholesalers, too. We recently got the support from the Cabinet to involve more in price-setting to ensure prices are good for consumers,” said the Minister.