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Five reasons why Dubai living costs are falling

Five reasons why Dubai living costs are falling

It’s still not the cheapest city in the world, but with inflation at a five-year low, many essential items are becoming more affordable.

February 16, 2010 4:02 by

2. Food prices

The prices of essential items peaked in 2008, when the government was forced to team up with private supermarket chains across Dubai to reduce the rates of consumer goods. Places like Lulu Hypermarket cut rates by between 10 to 30 percent during 2008 and 2009.

But with the financial crisis, consumer product prices across the world have dropped, and according to Lulu spokesperson V Nandakumar, the rates currently are much lower than in 2008. “All are happy now,” he says.

3. Phone rates

Earlier this month, UAE telecom provider du said that it was launching new international calling rates for landline users, which are a third of the rates currently available with its competitor, Etisalat. The move came soon after the UAE’s Telecommunications Regulatory Authority (TRA) announced that du and Etisalat will be able to set their own prices without seeking government approval.

The move will help prevent measures such as predatory pricing, and foster healthy competition, the body said.

Healthy competition among the two operators would probably translate into lower calling rates for consumers.

4. Transport costs

The introduction of the Dubai Metro last year, albeit with just 10 stations open at launch, offers a cheaper option to travel around the city. The fares range between AED2.00 and AED6.50 for a one way regular class ticket, and take you from one end of the city to another.

With all the Red Line and Green Line stations expected to open by the end of this year, the Metro could become an easy and relatively cheaper mode of transport for Dubai’s residents.

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  1. Optimistic on February 17, 2010 9:52 am

    I am glad to hear this news. I have seen prices drop particularly when shopping for essentials.This can only get the average resident in Dubai back on their feet. We need to hear more positive news like this (as long as it truthful and unbiased).

  2. Anupama V. Chand on February 18, 2010 7:17 am

    Really? Do we residents of Dubai believe this to be true? I am afraid not….if there is one thing living in Dubai over some 10 years has proved, it is not to buy into these research details without a pinch of salt…..Real estate prices and rentsfaslling, I will grant you, but as far as prices of essential items and transportation costs are concerned, any average resident who has to get from point A to point B, in public transport will tll you that is all cock and bull. The Metro, despite its early premise of being a cheaper, more convenient form of commute, has not lived up to its claim – the ost of a family of four taking the Metro from point A to Point B and back again to Point A, is around the ame as if they took a taxi. That is because while it is advantageous for one person to take the Metro, for a whole family the taxi is more affordble…..and the more things seem to change, the more they remain the same…..even when it comes to food, prices of most items like oil, rice and flour, bread and dairy products have only gone up…where is the coming down? Or is it just me that can’t seem to see it? As for discounts, don’t be led astray? There is no such thing as a free lunch, and Dubai exemplifies the spirit if that adage, muh as I love this city! Let’s get a reality check on Etisalat and Du too….more money-minded telecommunications operators one would still have to come across….from substitute or replacement SIM cards to getting your evision connection cut off at the stroke of the mid-night hour, if you haven’t got eugh in th balance account, it’s all happening in Dubai, thanks to these two. And their cat-and-mouse games for customer loyalty are just that, as everyone knos they are all run as one unit when it comes to back office. Sorry to sound a deprecating ote on all the optimism, but let’s get realistic when we send out such messages to the world at large. Dubai could much more benefit from a transparent image, rather than one disguised in rainbow hues!


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